FEASIBILITY OF MASTER CARD &VISA WITH ADVENT OF DOMESTIC PAYMENT GATEWAYS

Presented By:

ABOUT CASE
Master Card & Visa give us secure, convenient & Secure access to do payment transactions Master card & Visa are accepted at 22 million locations worldwide Indian banks are paying hefty amount of Initial and quarterly fees to Master Card and Visa NPCI has launched domestic payment network set up by National Payment corporation of India at behest of all banks in India

CONT
RuPay is an initiative by Indian Bank Association and implemented by Reserve Bank of India Impact analysis of New Domestic payment gateway with existing players like Master Card & Visa is done. Feasibility of Master card and Visa with advent of domestic payment gateway is studied.

1. CONSTRUCTS AND CONCEPTS

CONSTRUCTS AND CONCEPTS

Cost

Any collision which causes any personal injury or property damage Should an intersection have to achieve some base level of traffic to be considered part of the pool of intersections that are considered? Sample measure based on number of cars proceeding through an intersection during a specified period of time in each of four directions

Security

Financial Inclusion

Severity

Should State Farm use medical recovery cost and property damage repair estimates to determine severity or some other measure like loss of life or limb?

2. HYPOTHESIS

HYPOTHESIS

As the number of transaction by domestic payment gateway increases cost saving increases As the number of transaction by domestic payment gateway increases number of people using card payments increases As the number of transaction by domestic payment gateway increases number of merchants doing transaction increases

HYPOTHESIS
Increase in number of transactions by domestic payment gateway increases Information security Increase in the damaged condition of the roads increases the frequency of the accident

Increase in the irresponsible driving increases the severity of the accident

Increase in the irresponsible driving increases the frequency of the accident

3. EVALUATION OF METHODOLOGY

EVALUATION OF METHODOLOGY

Sampling issues

Only limited number of people in banks were aware of the technologies discussed. Specific information regarding costing of transactions on payment gateways is considered by banks to be strictly confidential. Till now limited information is published by NPCI and RBI about domestic payment gateways, therefore difficult to have a standpoint.

EVALUATION OF METHODOLOGY

Parameters not considered during study

Customer comfort level with Master Card & VISA

Also the data is not adequate enough to find any pattern of dangerous intersection

4. CONCERNS OF TRANSPORTATION ENGINEERS

CONCERNS OF TRANSPORTATION ENGINEERS

Give more importance to the accidents that cause more injuries or deaths Injuries are already included in 2001 study of State farm We can add the death factor in matrix to calculate the severity of accident

5. TRAFFIC VOLUME AND OTHER CONCERNS

TRAFFIC VOLUME AND OTHER CONCERNS

Data is not adequate to detect the pattern as State farm has used the data of last 2 years only The method to link severity to claims is also not adequate

Because the costly cars may have higher claim for small damage compared to cheaper cars and will not measure the actual loss of asset

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