Phones can Save Fuel,Time, Efforts, Mall& shop Space, Cost of Printing Money and replace PDS and other subsidies with DBT.
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Author: P. Abraham Paul Dated 15 May 2012
Introduction: People around the world, especially the huge population in the developing countries are reeling in financial burden due to rising cost of living without commensurate increase in per capita income. The gross inequity in the distribution of wealth and resources and wide divide between rich and poor magnifies the malice multi-fold. It is highly disheartening to see the humanity in spite of quick advancement in every field during past few decades is unable to find methods and solutions to get over this sad situation. Over and above the path of growth greatly cause to degrade the harmony and well being of the nature and environment we live.
1. Need to stop erosion of balance in eco system. Over exploitation of natural resources and its extensive dispensation / consumption have become greatly harmful to the extent that the future of humanity is under perennial threat. Digging out coal, oil and natural gases and metal ores and expending it the way we do now are causing unbalance in Earth’s eco system and polluting the environment. Therefore, it has become immensely important to find alternatives to get over these problems before it is too late.
Top priority goes to alternate energy by switching over to Solar, Wind and Tidal, Bio energy while developing and usage of systems and products that can work on lesser energy.
2. Embracing IT, the one India is good at, is the way forward. We need to prioritize, making and use IT based products and services to reap its full benefit for the betterment of humanity. One such opportunity is to deploy modern era Information Communication systems and networks enabling people to save on fuel time and effort and reduction of pollution.
With modern means of ICT & ICN, it is possible to do most of the types of office jobs sitting at home. With efficient and cheap form of connectivity and user devices, one can remain connected through the day enabling to go about job related and personal chores hand in hand with ease and comfort thereby reducing time and efforts enabling huge savings on fuel, space in pubic places such as shopping malls and utility service areas. In malls only the specimen need be displayed for the customer to tap on it with his mobile phone and get it automatically paid and delivered at the exit area. Further, with NFC technology phones people can do all their shopping by scrolling shoppers’ catalogs, selecting and ordering items needed sitting at home and getting delivered. It can save huge cost of setting up large area malls in expensive urban localities. Such systems can hugely reduce road usage and big parking spaces.
3. Mobile phones are now part of one’s apparel every place all the time. Mobile phones have become part in parcel of one’s daily ware where ever they are, and has potential to make one to dispense with the wallet, credit cards, keys of house, shops, vehicles, access cards to parking lots, ID to enter office, to do Road & Bridge toll payments etc. using the fast proliferating NFC technology.
Phones could become usable for remote controls of A/C, Kitchen appliances, TV and other gadgets. Phones can become handy as medical aid tools, online consultancy with physician and accessing various life service data base.
Large array of Phone based services, both with Mobile and fixed are now available, accessible and affordable to common man. Various forms of futuristic Money Management and Pay by Phone (PBP) services will enable all sorts of day to day money transactions using phones at any time from anywhere. Phones or gadgets using the same technology can be handy in emergency situations for all and can reduce assault and rape of women and children. Please see my blog: Technology based Universal Emergency support systems and solutions. http://wp.me/p1ZsI2-lZ
Payments made easy and direct:
Press Cntrl Key & Click on the caption to see a presentation on MTM >>>> MTM_Presentation_160813
Money management using phones as a service can take care of easy payment mechanism to directly transact (receive and send) virtually all form day-to-day micro/macro e-payments such as salary / pension of employees, all sorts of government’s welfare payments, payments related to Right to employment, Right to food, Right to Education and health care, Dispensing of interest / dividend payments on deposits, Payment for utility bills, Taxes and service charges, School and College fees, Payment to job contractors and job workers, Payment by employers to employees, Bill payment in shops, sales outlets & malls, cinema halls, petrol bunks, various travel ticket vendors and vending machines, taxi and auto fares, road & bridge toll payments, vehicle parking charges, quick transfer of money to friends, spouse, pocket money to children, small personal and business money lending, transactions with Micro-finance agencies and franchisees, crediting money into Bank and Post office accounts etc., without involving banks, credit card companies and other money transfer agencies.
Most of the day-to-day money transactions could be done sitting at home/office or from anywhere any time without need to commute and therefore will help save time, fuel and reduction in road usage, traffic congestion and pollution.
With more and more money management done with e-transactions like Pay by Phone (PBP) method, printing of money need be less and can save a lot to the exchequer.
4. Phone based services for Empowerment of mass. There is a need to urgently implement non-banking and non- internet dependent solutions to realize financial inclusion of people in the lower social and economic strata.
More over, regular banking systems cannot handle huge volume of low value transactions at Money management using phones is an effective tool and quickest means to realize ‘Financial inclusion’ of people in the lower strata both in rural as well as in urban areas across the country. PBP services can take of high volume of low value transactions at negligible or zero cost the users.
There is urgent need to implement non-banking and non- internet dependent solutions to realize financial inclusion of people in the lower social and economic strata. The banks, both nationalized and private are white elephants always with an eye on profit rather than service. Whatever said and done, banks will not be able to effectively serve people in the lower economic strata in urban as well as rural areas. Even with Banking correspondents, formal banking procedures are not user friendly for low literate and poor customers especially for the women and aged. This is more true in the case of huge volume of day today low value micro transactions at negligible or no cost to user.
Similarly, services of most of the Micro Finance Institutions are also unaffordable to people in the lower economic strata. Various pay by phone systems would help to make micro money payment facility available, accessible and affordable to everyone; including people in the lower economic strata at an individual level who can be made eligible and enabled and to own and use a phone in urban and rural areas.
For example: A person can avail loan against his small gold deposit as collateral with the Service provider, can get the loan amount credited in his account, use it for his needs and pay it back with nominal interest in easy installments, and take again if needed, any number of times from anywhere any time transparently without any human intervention.
Pay-by-phone will not be disruptive to banking Industry. There is a myth that un-banked pay by phone services could disrupt banking industry. The fact is other way around. The huge amount of micro-money transactions handled by pay-by-phone system will eventually reach banks through for settlement of accounts between various POS and Pay-by-phone service provider.
5. Hard cash transactions. Crediting money into users account can be done by buying and using pre-paid coupons available from franchisee outlets or by transferring money from Post office or bank accounts to PBP account or through any other PBP user from their account by paying in cash. For example money can be transferred from PBP account of spouse or parent to children or between friends.
Hard cash can be obtained at PBP franchisee outlets or from PBP cash vendors on nominal discount. By transferring money into their PBP account. At locations where people need quick cash at malls, and other locations, licensed Money changers can dispense real cash at a discount in lieu of e-transfer of money to their MTM account. Such an arrangement in itself can promote the service and become a job potential for many hand in hand.
Even housewives sitting at their homes can do this sort of hard cash transactions on small discounts, and also can provide personal micro finance service to known persons by giving them short term small loans at nominal interest using PBP service.
PBP cash vending machines (PBP-ATM), identical to bank ATMs, provided by PBP system provider at PBP franchisee points and other secure places shall be used to deliver real cash to PBP users. For example anyone one go to a coffee or soft drinks and snacks vending machine, dial the access code and get the required product without any cash payment.
PBP-Cards. PBP users can use PBP-VISA Cards identical to credit cards; issued by PBP service provider that can be used to receive or credit in real cash from PBP-ATM or any of banks ATMs.
PBP Service can be extended to Land Line phone users. PBP service such as payments of Utility bills, Service charges etc and transfer of money to any PBP user account can be extended to Land Phones also as the numerals, * and # keys used in USSD messaging are available in land line phones. IVRS incorporated with PBP system can take care of the transactions between Land Phone and PBP system.
6. Tap solar powered utilities to support mobile phones. Solar powered energy to support the phones and other user end devices in the POS. To make available the eco system to power Mobile phones and Set top boxes at user premises where regular electric supply is not available or cannot be afforded by villagers in rural areas, solar powered mobile phone chargers etc., to be provided at subsidized cost. Facility for free charging mobile phones could be provided at public places, post offices, panchayat offices, bus stations / Rly stations. etc.
To enable PBP as a too to realize financial inclusion of the people in the lower strata across the country, it is worthwhile to consider giving out of special purpose phone to people in BPL category free of cost and at subsidized rate for others.
7. The business part: PBP deals being virtual e-transactions, and therefore, most of the real money remains within the PBP system that can used to generate income. This opens out enormous business potential for various stake holders associated with PBP business.
There will be above billion phones in India soon. With a modest assumption of a monthly average of Rs.10000/- transaction per phone, the annual turn around of the business will be a mind bogging sum in hundreds of Trillions. The huge excess liquidity available with PBP Service provider can be profitably deployed in various instruments of money management products within regulatory norms.
PBP service can be provided free of charge to users. With above business logic, it is possible to provide PBP service free of cost to users which will make the system popular with all types of phone users that will enhance PBP usage.
Share of revenue for stake holders. With the enhanced money business from this un-banked value added service, there will be enough profit share for various stake holders, the Telecom service providers and others, involved in PBP business.
8. Need to regulate: Un-banked Mobile Money Management is a must, but need to be regulated. Setting up of disparate Money management systems, product and services by various parties without any regulatory arrangement will not deliver desirable results especially for financial inclusion and empowerment of people in the lower strata across the country. Therefore, government should take immediate steps to bring un-banked money management service under regulatory controls through National Payments Corporation of India (NPCI) under the ambit of RBI.
At the out set, the current mind set of the Government that Pay by Phone services is disruptive to Banking Industry should go. A solution to resolve this impasse between Government and Telecom Service providers is to have an exclusive banking system associated with the PBP service providers that is set up as a 3rd party system by the consortium of PBP Service providers and controlled by NPCI under the ambit of RBI.
In fact every pay PBP service generate factual statistics, it is easy for the government to ensure avoidance of various tax evasions. Moreover the the scope of taxation can be easily spread wider.
9. Success of PBP service depends on the following aspects:
PBP system shall provide service to all Service providers across the country. PBP shall be a common centralized system that shall be available, accessible and affordable to all types of users. Since the system involves high volume of very low value money transactions, the service shall be without any additional charge. Any cost involved on service shall be compensated by profitably deploying the liquidity available to them in the operation process.
It is necessary that PBP subscribers, utility providers, vendors, shops, banks, Post offices etc involved in PBP service are able to deal with a common PBP service provider, to make the service simple, user friendly and efficient, and to become profitable and effective.
Therefore, to make the system and service succeed, the money management system should be able to offer universal service anytime, anywhere, for every form of payment. To realize this, the PBP system shall be ideally a common, centralized, stand-alone, third party system that is set up by the consortium of Telecom service providers or by a third party on revenue / profit share basis with the stake holders involved.
Please also see my blog: Universal Un-banked Money Management by phone http://wp.me/p1ZsI2-4g
Abraham Paul. P. email@example.com
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