Send Money to FB friends- Revolution in Payment Industry
Send Money to Facebook friends- Revolution in Payment Industry
Kotak Mahindra bank has come up with a new facility where one can send money to his contact from Facebook Friends list. They call it "Kaypay"
|Snapshot of Kaypay Website|
The concept of Money has evolved from the barter system centuries ago to the today's card, mobile and online payment. With the influence of social media, this was the much required revolution. Years back, people were even skeptical of online shopping and today banks even see facebook users as a potential market.
The Revolution & its Outstanding
- Kaypay is a product of Kotak Mahindra bank but it doesn't limit to its account holders.
- Account holders from any bank can register yo use this service, the recipients too dont have to be account holders of KMB.
- It won't matter even if the recipient is not registered on Kaypay, on recieving the transaction prompt the person will be directed to the site where he can get registered.
The Revoltion & its Internal
- Kaypay is supported by NPCI's (National Payment Corporation of India) Mobile based Immediate Payment System.
- Even though the word is "Any Bank Account Holder", the bank must have Immediate Payment service(IMPS) and Merchant Initiated Payment (P2M) pull service.
- Not a thing to worry as 64 banks have registered for IMPS service with NPCI, out of which 61 support P2M too.
- So far Kaypay gives a limit of 2,500 INR per transaction and the maximum for a month is 25,000 which is expected to increase later.
The Revolution & its Influence
- With online transactions today, there is a obligation to know payee details and add the reciepients as beneficiaries. This process needs a buffer time of 12 hours for authentication and security purpose. This is inconvenience will be eradicated by Kaypay
- Today there are many businesses promoting their products and services on Facebook. With Kaypay, they can go a step further and receieve the payments for the same from customers who have a facebook account.
The Revolution & its Suspicion
- We all are well aware that Facebook accounts have not yet reached the level of security required to handle bank transactions. The fear of our bank account getting compromised if ever Facebook account gets hacked adds to the worries.
- But Kaypay ensures users of security, as Facebook will only act like a lookup directory and the transactions will happen through Kotak's payment gateways. There will be authentication through OTP(One Time Password), same as net banking. Even each transactions will have a limited time frame of 48 hours from recieving the notification. after which they expire.
- Many of Facebook apps misuse user profiles by updating some promotional status or content through user profiles. Kaypay promises that it wont join this league of trojan apps and will never post anything through a user's account.
- Data mining is another havoc faced by today's internet world, where many a online service sell their user information. Kotak ensures no such misuse of account details will happen.
Revolution & its Upcoming
Kayapay aims at enabling transactions through Whatsapp and Twitter next, and Facebook is first phase which is already attained.
The spoofs and status updates about this revolution is awaited where we can imagine friends claiming money and not just likes and comments for their uploaded photos and status. Even some may demand money to accept friendship requests.
On a serious note, around 250 million Facebook users from India are accoint holders which is a untapped market. With this revolution we can expect some new trends to emerge and the rest of the banks to follow suit. But only time can tell how much success does this service attain and if it will give results equivalent to the hype created or just fade way.