it project_vm mathur

8/4/2019 IT Project_vm Mathur

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EBS Online GatewayE-payment Gateway Analysis

Mohit Sharda (192018)

Nitesh Singh(192021)

Rohit Batura(192031)

Prateek Arora(192025)

Vaibhav Raj Bahadur(192043)


2/23

2

Objectives

To determine the viability and appropriateness of

implementing an online payment service as part of

the EBS

To outline the viability and potential uptake of e-

payment services

To inform the portal Tender Specification

To identify Issues and Requirements


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3

Purpose

Determine the factors involved with delivering e-

payment facilities from the EBS Online Gateway with a

focus on :

consumer payment trends and preferences

key e-payment methods available

high level analysis of RBI Payment Options. adoption options


4/23

4

Key Questions

Should the portal offer e-payment facilities?

If so what e-payment facilities should it offer?

What should be the portals role in offering the e-paymentfacilities?


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5

Methods ofInvestigation

High level strategic analysis

Focussed on G2C and adhoc G2B only

Utilised a significant amount of 3rd party research includingconsumer and industry research and analysis

Two agencies active in e-payments consulted

Expert group reviewed Draft Report and provided feedback

Very limited primary research conducted (e.g. no consumer

research and contacted only a few service providers)


6/23

6

Findings

Two categories of online payments:

Online purchase of goods and services

Online bill payment

Two e-payment methods

Payment

Categories

Purchase of

Goods and

Services

Bill Payment

Viable Online Payment

Methods

Internet

Payment

Gateways

EBPP

suitable for

PwC November 2001

Figure 1: Viable Payment Methods for Payment Categories


7/23

7

Online Purchases


8/23

8

Findings: Online Purchases

Number of internet users making online purchase is expected to grow

strongly to 70% by 2015

Will fuel expectations and the demand for online government purchase

capability over the next 5 years

Consumer research commissioned for the EBS found that over 30% of all

respondents said that paying fines and making government purchases

would be one of the functions that would most like to access from EBS

Total Users

Users Making Purchases


9/23

9


There are currently few online Indian Government transactions

Current online government transactions cannot be accessed in one

location, though Multi-Service Express has improved this situation

Recommendations

A minimum EBS online payment function is to provide access from

the home page to a Web page that consolidates all online

transactions

provide a listing with appropriate links that then on-sends the

consumer to the department level payment site

accompany online transactions with the correct meta data to

allow them to be searched and collated


10/23

10


Last year 82% of all purchases were made by credit card

Yet only 44% preferred to use credit cards

Primary Method of Payment of Goods Purchase Over the Internet

IDC Project Marco Polo 2000

%

Preferred Method of Payment of Goods Purchase Over the Internet

IDC Project Marco Polo 2000

%


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11

Issuing Bank

Issues card

Extends credit

Assumes risk of card

Cardholder reporting

Card

Association

Merchant

Merchant Bank (Acquirer)

Sets up merchant Extends credit

Assumes risk of merchant

Funds merchant

Consumer

Processor Processor

Process : Online Credit Card Purchases


12/23

12


Internet Payment Gateway for credit

cards only viable online payment method

currently and in near future due to:

a lack of acceptance

consumer behaviour

consumer fears regarding security

authentication requirements

speed of settlement

Current products immature, but market

increasingly competitive

On-Line

Authorisation / Settlement /

Decline @ Point ofSale

Internet Payment Gateway

PwC adapted from Opentec Website November 2001


13/23

13


Internet Payment Gateway for adoption options:

Decentralised where departments and agencies implement their own

solutions/choose their own service providers

Centralised Build where the EBS builds its own gateway service and associated

transactions services which is used by all of government

Mandated Centralised Preferred Supplierwhere a pre-approved preferredgateway service supplier is mandated by the EBS and is required to be used by

the whole of government for all transactions

Optional Centralised Preferred Supplierwhere a pre-approved preferred

gateway service supplier is optional for existing or commenced implementations

but mandatory for all new implementations

Optional Centralised Preferred Suppliers where pre-approved preferredgateway service suppliers are available to be used at the department/agencies

own discretion. This could simply be in the form of a listing of providers that meet

required specifications

Centralised Collection where the EBS or another government agency manages

all government transactions and online collections


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Issues considered at a high level when evaluating adoption options:

implementation costs (new solution)

migration costs (existing solution)

service delivery (eg features, flexibility, responsiveness/time to market)

service provider charges (fixed and variable/transaction)

competition among service providers

department/agency choice and flexibility

synergies (shared learning and infrastructure)

consumer utility (eg choice and consistency of payment methods)


15/23

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Recommendations: Online Purchases

Optional Centralised Preferred Suppliers model recommended

payment gateway providers are screened and pre-approved

Departments use preferred suppliers at their own discretion

EBS is not a transactional portal and simply on-sends consumers

Advantages

Lower implementation

Lower migration costs

Greater departmental flexibility

Leverage service delivery & price improvements between re-tendering points

Only two parties (bank & merchant) involved in reconciliation*

Ado

tio ptio Rating Recommendation

Decentralised 3

I

LY

entralised

uild 1

andated

entralised

re

erred

upplier 2

ptional

entralised

re

erred

upplier 3

I

LY

ptional

entralised

re

erred

uppliers 5 YE

entralised

ollection 1

Adoption ption r


16/23

16


Centralised Build not recommended

Build own gateway and associated transaction services

Departments must use or migrate to gateway

Product/price/service levels determined centrally

Disadvantages Likely to be more expensive than private sector solutions

Cannot leverage private sector service delivery & price improvements

Likely to be less responsive and slower to market

Limits department flexibility

Adoption

ption Rating Recommendation

Decentralised 3

I

LY

entralised

uild 1

andated

entralised

re

erred

upplier 2

ptional

entralised

re

erred

upplier 3

I

LY

ptional

entralised

re

erred

uppliers 5 YE !

entralised

ollection 1

Adoption ption r


17/23

17


Centralised Collection not recommended

Manages all government online transactions and collection

Departments must use or migrate to new service

Product/price/service levels determined centrally

Disadvantages Additional intermediary likely to add to transaction cost

Competition not encouraged

Departmental choice/flexibility limited

Lack of single point of accountability (e.g. three parties potentially involved in

reconciliation) and liability

Adoption"

ption Rating Recommendation

Decentralised 3#

$ % %

I&

LY'

entralised&

uild 1(

$

)

andated'

entralised#

re0

erred%

upplier 2(

$

$

ptional'

entralised#

re0

erred%

upplier 3#

$ % %

I&

LY$

ptional'

entralised#

re0

erred%

uppliers 5 YE 1'

entralised'

ollection 1(

$

Adoption ption r


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18


E-payment gateway provider must link to RBI as it is the acquiring

bank under the whole of government bank contract.

Banking contract is to be reviewed next year. All else being equal,

changing banks likely to be difficult.

Limits the available third party Internet payment gateway providers

Recommendations

Selecting a provider/s that links to all of the banks will minimise themigration required if a new government bank is chosen

Objective of obtaining optimal Internet payment gateway rate


19/23

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Online Bill Payment


20/23

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Online Payment Diagram


21/23

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Findings: Online Bill Payment

Bill Payment = Electronic Bill Payment & Presentment (EBPP)

EBPP providers consolidates and presents bills and allows payment

*Electronic bill presentment & payment (EBPP)

Biller

e.g. UtilityBiller service

provider

EBPP

ConsolidatorConsumer service

provider

e.g. banks and portals

Consumer

Mature EBPP Model


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Recommendations: Online Bill Payment

Payment Due to the massive growth in popularity of EBPP services all major

government billers should consider offering their services via current3rd party EBPP services.

The EBS should also adopt a short to medium term vision ofproviding/distributing a third party EBPP service via its gateway whichwould provide a useful function for consumers and help to generate

traffic for the gateway.

EBS should not build a bill presentment or payment portal itself. It

should

investigate the maturity and feasibility of existing product/s and businessmodels

possibly allow the existing product/s and business models to maturesomewhat before commencing this investigation.


23/23

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THANKS

QA&

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