Chat & Pay: India Signals ‘Conversational Payments' in Policy Update

Chat & Pay: India Signals ‘Conversational Payments’ in Policy Update

Time Stamp: August 10, 2023 10:24 AM
Chat & Pay: India Signals ‘Conversational Payments' in Policy Update PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The Reserve
Bank of India (RBI) is the latest stakeholder in the financial industry to look at how
artificial intelligence (AI) can transform financial services delivery.
The apex monetary authority today (Thursday) proposed the launch of an
AI-powered ‘conversational payment’ method.

According to RBI, the innovative payment method will run on the Unified Payments Interface (UPI), India’s real-time payment
system that facilitates peer-to-peer and person-to-merchant transactions. The system was developed by the National Payments Corporation of India
(NPCI) and is regulated by the RBI.

The central
bank noted that its UPI supported by AI will make it possible for citizens
to initiate and complete payment transactions “in a safe and secure environment” through conversations. The monetary authority believes this move can improve the payment system and deepen digital penetration
in the country.

“UPI, with
its ease of usage, safety and security, and real-time feature, has transformed the
digital payment ecosystem in India. The addition of many new features over time
has enabled UPI to facilitate the diverse payment needs of the economy,” RBI
explained in a
statement.

The central
bank added: “As Artificial Intelligence (AI ) is becoming increasingly
integrated into the digital economy, conversational instructions hold immense
potential in enhancing the ease of use and consequently reach, of the UPI
system.”

To
facilitate ‘conversational payment’, RBI explained, the new payment
method will be made accessible on smartphones and other
phone-based UPI interfaces. However, the service will be first rolled out in
Hindi and English, with support for other regional languages to follow.

Offline
Payments in UPI

Meanwhile,
as part of changes to its developmental and regulatory policies, RBI on Thursday proposed making it
possible for Indian residents to conduct offline transactions using Near Field Communication (NFC)
technology on ‘UPI-Lite’, a simplified version of the UPI that was introduced in
September 2022 and designed for low-value transactions. NFC is the technology that underpins many contactless payment systems.

“This
feature will not only enable retail digital payments in situations where
internet/telecom connectivity is weak or not available, but it will also ensure
speed, with minimal transaction declines,” the central bank stated.

CFI welcomes MENA’s marketing head; FCA cancels Matrix’s license; read today’s news nuggets.

The Reserve
Bank of India (RBI) is the latest stakeholder in the financial industry to look at how
artificial intelligence (AI) can transform financial services delivery.
The apex monetary authority today (Thursday) proposed the launch of an
AI-powered ‘conversational payment’ method.

According to RBI, the innovative payment method will run on the Unified Payments Interface (UPI), India’s real-time payment
system that facilitates peer-to-peer and person-to-merchant transactions. The system was developed by the National Payments Corporation of India
(NPCI) and is regulated by the RBI.

The central
bank noted that its UPI supported by AI will make it possible for citizens
to initiate and complete payment transactions “in a safe and secure environment” through conversations. The monetary authority believes this move can improve the payment system and deepen digital penetration
in the country.

“UPI, with
its ease of usage, safety and security, and real-time feature, has transformed the
digital payment ecosystem in India. The addition of many new features over time
has enabled UPI to facilitate the diverse payment needs of the economy,” RBI
explained in a
statement.

The central
bank added: “As Artificial Intelligence (AI ) is becoming increasingly
integrated into the digital economy, conversational instructions hold immense
potential in enhancing the ease of use and consequently reach, of the UPI
system.”

To
facilitate ‘conversational payment’, RBI explained, the new payment
method will be made accessible on smartphones and other
phone-based UPI interfaces. However, the service will be first rolled out in
Hindi and English, with support for other regional languages to follow.

Offline
Payments in UPI

Meanwhile,
as part of changes to its developmental and regulatory policies, RBI on Thursday proposed making it
possible for Indian residents to conduct offline transactions using Near Field Communication (NFC)
technology on ‘UPI-Lite’, a simplified version of the UPI that was introduced in
September 2022 and designed for low-value transactions. NFC is the technology that underpins many contactless payment systems.

“This
feature will not only enable retail digital payments in situations where
internet/telecom connectivity is weak or not available, but it will also ensure
speed, with minimal transaction declines,” the central bank stated.

CFI welcomes MENA’s marketing head; FCA cancels Matrix’s license; read today’s news nuggets.

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