With the world progressing, everything is done digitally. From payments to various products and services, everything can be bought using debit or credit cards or other online options. However, there are some situations in which you may not be able to use these digital payment methods. For example, during an emergency while you're on the road! Or while buying groceries from the local supermarket. This is where NMI Payment Gateway steps in, to bridge this gap and enable people to pay via cash at all retail outlets across India!
NMI stands for National Mobile Interface which aims to "provide a platform for merchants with Point of Sale(POS) devices to accept card payments using mobile phones". To do this, NMI has tied up with various banks to use their payment gateway along with the mobile number of the customer. As it is attached to a mobile phone, the user no longer needs their credit/debit card or even internet banking details while making payments!
NMI Payment Gateway (NPIG) provides an easy solution to make cashless payments. All you need to do is contact your bank and provide your mobile number to the bank. Once the process is complete, now you are able to make payments using just your mobile number!
How does it work?NMI Payment Gateway has partnered with various banks across India, including Axis Bank, ICICI Bank, IDBI Bank, RBL, HDFC Bank and of course, SBI.
Once you have registered with the bank (and this process varies for different banks), all you need to do is provide your mobile number at retail outlets where NPIG is set up. When done correctly, the merchant will receive an authorization code within 2-3 seconds. The customer will receive a payment SMS along with the merchant's ID. If you have registered, then you do not need to provide your credit card details at all! All you need is your mobile number and bank account information (of any of the banks that NPIG has tied up as mentioned earlier)!
If it is your first transaction with any particular merchant, you will receive a One Time Password(OTP). This OTP is valid for 30 minutes. You can use that time to enter the OTP on your mobile or on the NPIG website and complete the payment. Once completed, an SMS notification is sent to both parties.
For occasional transactions with small amounts, you do not need to enter the OTP at all! Once an authorization code is sent, you can use that code within 3 minutes for mobile or 10 minutes for a website. You need not wait for an SMS confirmation.
How much does it cost?There is no convenience fee charged by NPIG. However, there may be a minimal charge from the bank where you have a savings or current account. For example, HDFC charges Rs 2 + tax per transaction using their app! There are no additional charges from the customer either! The merchant also has to pay a small service fee for accepting cashless payments. A particular merchant may also tie up with more than one bank, which can help you choose the best deal if there are different charges for different banks!
Is it secure?
Yes! All the transactions are encrypted (using AES-128). The customer's mobile number is verified through an OTP sent by SMS/IVRS or a One Time Password generated by the mobile app. Once the transaction is successful, the mobile number is blocked for future transactions. This prevents it from being misused to make payments unless you explicitly provide your consent!
How can I use it?
NMI Payment Gateway currently supports 27 banks across India which includes Axis Bank, ICICI Bank, IDBI Bank, RBL, HDFC Bank and of course SBI. They are planning to expand more banks in the near future!
You just need to contact your bank and provide your mobile number for registration. Once done, you can use NPIG by providing your mobile number at retail outlets who has set up NPIG at their Point of Sale (POS) devices.
You can download the mobile app from the respective App Store for your phone type. The website also has similar features available to make cashless payments. You need not visit any bank branch or ATM!
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