I4S India: Security is a big hurdle on a user’s mind while performing online transactions on mobile or on the PC. What is your take on this?
With anything new, there is always some apprehension – especially when doing online financial transactions. This isn’t specific to India – when eCommerce sites like Amazon.com and eBay launched in U.S., there was equal apprehension about entering credit cards details onto a website.
The good news is that mCommerce has evolved from eCommerce and every credible mCommerce service employs not only the best practices and security technology used for the PC, but has additional security that makes the mobile as safe, if not more, than using the Internet on the PC.
In this context, the release of Reserve Bank of India (RBI) guidelines last year should further comfort users. They will ensure that all mobile service will meet a minimum, robust level of security on par with banking and financial security on any other channel.
A user should look at the following aspects to make sure that the online transaction done on mobile or PC is secure:
– Ensure that there is two-factor authentication for any service for which you sign up (e.g. handset + PIN in the case of ngpay) and that your PIN is never stored on the handset.
– Whenever possible, make sure the transaction is done using GPRS and not SMS. SMS is not real time and plain text SMS has already been identified as insecure by the RBI for financial transactions.
– Look for services that have tied up with and been approved for financial transactions by reputable banks. It took us over a year to launch our comprehensive banking services with HDFC Bank due to the elaborate testing and security certifications that were required to be approved by them.
I4S India: How do you give the user peace of mind while using ngpay where security is concerned?
At ngpay, there has been more than enough research and development done to make the application secure. ngpay is 100 per cent compliant with the RBI guidelines which came out last year. All data is encrypted using the most stringent banking and financial norms. In addition, at ngpay, we do not store any financial data.
Besides, before a transaction is carried out on ngpay the user has to enter a unique six digit PIN number and linked to the user’s handset. This is similar to using an ATM card. The card is useless without the unique PIN and vice versa. Hence, even if the user’s mobile phone is lost or misplaced, it cannot be misused. I would say it has better security than even the PC. If I know your Amazon password for example, I can log onto any PC and commit fraud on your account. Not so, with ngpay.
Also, as mentioned above, the fact that a top private bank like HDFC Bank is offering its full suite of banking services on ngpay should reassure users.
I4S India: Mobile commerce means using your mobile handsets to make mobile transactions? Is India ready for mobile commerce?
mCommerce is simply an electronic commerce (eCommerce) delivered over a mobile handset in a way that is easy to access, easy to use, and secure. End-to-end mCommerce allows people to complete the full shopping and eCommerce cycle (searching for products, placing an order, paying for the order and receiving the product or service) using only their existing mobile handsets.
In other consumer markets, eCommerce has not only been successful but actually changed the way people transact their lives. The average Indian will appreciate the benefits of eCommerce (convenience, product comparisons, 24×7 shopping and payment) as much as a typical American or European does – maybe even more given the limited access to physical retail and service outlet in Tier 2 & Tier 3 cities.
Given the penetration of mobile phones and the increasing capabilities of even the most basic handsets, the average Indian today can shop, bank, buy tickets, pay bills and much more with only a few simple clicks and without having to leave his or her house.
Imagine how this would simplify life for a busy parent who no longer needs to drive to multiple service centers to pay bills or an executive stuck in traffic who needs to reschedule a flight or a group of college students in a coffee shop who want to get tickets to the latest movie at the last minute or a son working in a Tier 3 city who wants to send a gift to his mother living in a different state, etc.
ngpay already has users in every state and our rapid growth in less than a year provides a good indication that India is indeed ready for mCommerce.
I4S India: Why do you think ecommerce has not taken off in India? How would India take the leap to mobile commerce over ecommerce?
I think that there are two primary reasons why eCommerce over the PC has not taken off yet. First, PC penetration in India is trivial.
According to Internet and Mobile Association of India & Telecom Regulatory Authority of India, there are less than 15-20 million broadband connections, only 45 million active Internet users on the PC, and approximately 70 per cent of online transactions happen in cybercafes and in the office.
Obviously, if people can’t access eCommerce services when and where they want, people won’t adopt them no matter how much value they provide. The other reason is that the Indian consumer market is in early growth stages vis-a-vis the US and Europe. People’s comfort with non-cash and virtual transactions with a faceless retailer will, not surprisingly, be low during the early days.
The good news is that the mobile channel clearly solves the first problem and hence, in our mind it’s not even a question of ‘if’ mobile commerce will leapfrog eCommerce but ‘when’. When eCommerce takes off (which it inevitably will, as consumers become more educated about security and benefits), the mobile is the logical channel for consuming it.
mCommerce services like ngpay run on even entry-level handsets. Just as mobile phones have greatly reduced the necessity of landlines, mobile handsets running services like ngpay provide a convenient and cost-effective substitute to the PC for eCommerce.
I4S India: Please tell us a little more about ngpay’s growth story?
ngpay is India’s largest mall which is located entirely on a user’s mobile phone. Users simply download a free application and they can immediately access end-to-end mCommerce services such as shopping, ticket purchase, bill payment, banking, food ordering, etc., from over 80 businesses.
ngpay has spent over four years in research and development (R&D) before launching into mass market. A lot of this R&D was focused on ensuring that the application is highly secure, provides an interactive and user-friendly experience, and uses minimum memory space so that it can work on any entry-level handset (ngpay is only 64kb and can be downloaded on phones costing as low as Rs 2,000).
ngpay works on GPRS which is more reliable, cheaper, and secure than transactions using SMS. All the user has to do is ask their telecom service provider to activate GPRS. All operators provide “pay-per-use” plans so users will not have to pay any unnecessary fees.
When a user opens the ngpay application he or she will be able to choose and interact with any partner in the ngpay network which includes over 80 businesses across 10 sectors including entertainment (cinemas, concerts), travel (rail, air, bus, taxi), shopping (books, music, flowers, chocolates and more), banking, bill payment (utilities, insurance, telecom), donation (charities, temples, NGOs), and food (home delivery ordering and payment).
For merchants, ngpay works as a sales channel reaching out to customers anywhere in the country. ngpay’s technology and business model makes it easy for any business – large or small – to make their catalog of products and services immediately available to the entire growing ngpay user base.
Since its launch, ngpay’s growth has been rapid:
– Over 250,000 users have downloaded and registered with ngpay making it India’s largest end-to-end mCommerce service. We have users from every state in India (even Andaman and Nicobar Islands).
– We process millions of requests from users per month (our website monitors clicks every 1.5 seconds). ngpay is already the leading mobile channel for IRCTC, Fame Cinemas, HDFC Bank, Landmark Books/Music – proving that not only will people transact over the mobile but will do so across many different sectors.
– There are no hidden costs for any transaction. ngpay works on the basic GPRS provided by the service providers and the user does not have to buy a data plan. The average transaction completed on ngpay will cost the user less than 50 paise in data charges paid to the operator (which is much cheaper than using SMS service).
– Users can complete transactions using a variety of payment instruments including credit cards, direct debit from bank accounts, and cash cards.
Users can also download ngpay – for free – by simply sending “ngpay” to 56767 via SMS or visiting our website (www.ngpay.com).
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