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Real-Time online banking — A milestone in banking sector

Published on 25th Apr, Edition 17- 2016

 

Mobile banking an effective way for achieving financial inclusion

According to latest official figures regarding real-time online banking, the network of ATMs in the banking industry continued to grow reaching from 10,099 to 10,736 during the second quarter of current fiscal year 2016.

During this period some 5,689 POS machines were also added to the network showing a growth of 12.82% as compared to first quarter of FY16.

The number of cards issued by banks has also increased by 16.27% reaching the total of 33 million by the end of the quarter under review. This increase is mainly caused by addition of MFBs issued 3.7 million ATMs only cards in payment system statistics in this quarter.

During the current quarter, registered users of Internet, Mobile and Call Centre banking showed a growth of 3.94% reaching to 22 million at the end of second quarter of FY16.

During the second quarter of FY2016, Pakistan Real-time Inter-bank Settlement Mechanism (PRISM) settled 225,598 transactions of value Rs64.1 trillion showing an increase of 5% and 19% in volume and value respectively compared to first quarter of FY16. The major share in increase of number of PRISM transactions was contributed by Inter-bank Funds Transfer which increased by 5.29% while increase in value of PRISM transactions was contributed by securities settlement, which increased by 18%.

In second quarter of FY 2016, the volume and value of Internet banking transactions showed an increase of 12.29% and 2.17% respectively. The volume and value of Point of Sale (POS) transactions increased slightly by 1.92% and 1.54% compared to last quarter. Similarly, the volume of mobile banking transactions increased slightly by 2.95% while its value increased by 4.80% as compared to the previous quarter of FY16.

Automated Teller Machine (ATM) transactions showed a decrease of 2.41% in volume and 3.51% in value as compared to last quarter of FY16. The volume of Real Time Online Banking (RTOB) transactions rose from 29.5 million to 32.7 million whereas the value increased by 13.5% i.e. Rs7.2 trillion to 8.2 trillion caused by increase in Real Time Cash Withdrawals and Deposits and inclusion of Microfinance Banks (MFBs) data in payment system statistics. Non financial transactions declined by 4.34%.

Online shopping

Committed to delivering a secure and convenient online shopping experience to the country’s booming Internet population; Easypay has launched the Pakistan’s first Escrow Buyer Protection service to further secure online shopping.

Although online shopping has witnessed exponential growth in recent years, an overall lack of trust and a perceived risk of fraud in online purchasing is a key barrier to the growth of this industry.

A large number of Pakistani customers are still wary when it comes to making online purchases. The lack of trust remains as one of the main reasons why the Pakistani e-commerce market works primarily on Cash-on-Delivery (CoD).

Customers’ reservations range from the authenticity of merchants, product genuineness and condition; to the time it takes their orders to reach them. However, CoD has its own risks as a customer is not handed over the product(s) unless the cash payment is made to the courier representative.

 

Aimed at building trust and customer confidence, with Easypay Buyer Protection customers will be now able to prepay with confidence for all their online purchases.

Buyer Protection withholds payment from the merchant until the customer has received the product and communicated their satisfaction with the purchase. In case the customer faces any issue with his purchase, for instance the product is not as advertised, or is damaged, they can raise a dispute with Easypay.

Easypay Buyer Protection gives customers the right to a refund or replacement when items fail to match the information given prior to purchase.

The buyer simply has to submit a dispute form (dispatched with the shipment) along with detailed description of the problem and supporting evidence (images/video) to Easypay within 7 days from the date the shipment was received. This initiates the first phase of dispute resolution whereby the merchant and customer are given an opportunity to resolve the issue amongst themselves within the next 7 days. If the dispute remains unresolved, the next phase of resolution is initiated wherein the Easypay dispute resolution committee shall assess the dispute details and supporting evidence and give a final decision in either party’s favor.

Shedding light on this major development, Yahya Khan, Chief Financial Services Officer, Telenor Pakistan said, “Through Easypay Buyer Protection, we have come up with a solution that would boost Pakistani buyers’ confidence in online shopping, giving them the right to spend their hard-earned money only when they are satisfied with their purchase. This is the very first time that a Buyer Protection service has been introduced for online shoppers where the buyers will get their money back if they are dissatisfied with their purchase, and we are proud that Easypay has pioneered it. “We really hope that Easypay Buyer Protection helps overcome trust and results in the growth of the local e-commerce sector.”

Pakistan’s first and largest branchless banking solution, Easypaisa was launched jointly by Tameer Micro Finance Bank and Telenor Pakistan in 2009. Easypaisa has the largest financial footprint in Pakistan with over 75,000 Easypaisa shops in more than 800 cities across the country. Nearly 650,000 transactions are conducted on Easypaisa every day by 20 million active customers. In 2015, Easypaisa moved nearly 3% of Pakistan’s GDP. Easypaisa has the largest product portfolio of services for its customers including remittances, payments, savings and insurance and offers ATM cards and IBFT services that work with all banks connected through 1-Link in Pakistan. In February 2014, out of more than 250 Mobile Money services around the world, Easypaisa was awarded two GSMA Awards, including the “Best Mobile Money Service in the World” at the Mobile World Congress, Barcelona, Spain.

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