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LankaClear Reveals JustPay to Facilitate Retail Payments

LankaClear has unveiled another innovative initiative to boost JustPay 20% of retail payments through smart mobile devices in 2020.

The initiative will facilitate JustPay's retail payments through disruptive technological innovations.

The new addition to the national payments network, creating LankaClear, is supported by the Central Bank and member banks of the Joint Electronic Funds Transfer (CEFTS) of the LankaPay facility. Usually it aims to facilitate retail real-time insurance payments lower below Rs.10, 000 under an extremely low rate plan.

Therefore, it is recognized that JustPay allow customers to make retail payments from your bank account using smart phones and other smart devices.

This latest innovation will use two-factor authentication and end-encryption at the end, according to director general LankaClear Channa of Silva. He noted that these additional measures will further strengthen the security efforts of banks by enabling mobile payment applications by joining the Central Bank (CBSL) as the basic safety standard prescribed for mobile applications.

De Silva said that due to comfort, the highest level of security and extremely low transaction costs, the newly opened JustPay service will soon become the de facto payment option for the retail payments segment of Sri Lanka.

"For JustPay to be accepted by the masses, mobile payment applications must be extremely easy to use, safe and must be compatible with local languages. The goal is to make it a great success, to extend usage to A point even a farmer or dairy in most rural villages would be comfortable to opt for the service, "de Silva said.

An analysis of the current situation of retail financial transactions volumes in the country indicates that, although the possibility of providing a transaction through an electronic platform is available, a good majority of payments are still made in cash.

Worldwide statistics show that, despite the increasing use of the Internet, retail cash transactions account for between 2 and 5 per cent of the total volume of transactions in this region. A total of 125 million transactions a year occur in Sri Lanka via the electronic mode according to CBSL statistics, which basically means that somewhere between 2.5 to 6 billion retail transactions are carried out with money .

Even if we assume that only 95% of transactions are conducted using cash, De Silva said it is essential to create a change in the near future if the economy will reap the benefits by reducing the money In circulation as even part of the money remains completely outside the banking system stored in safes and other "safe" places.

"This change will not only benefit banks to increase their income from Rs. 6,100,000,000 through transaction fees and interest, but also help eliminate the masses to adopt electronic means of payment. The ultimate goal is to ensure that the majority of the public to participate in the development process, "said Silva.

Studies have shown that printing and distributing the actual cost to a nation nearly 1.5 percent of its GDP. Although this is the world average estimated, it is expected that the percentage is significantly higher for developing economies like Sri Lanka.

"If we can attract at least 20 per cent of these cash-based payments electronically, this will lead to a huge surplus in the volume of electronic transactions. Potentially could save the country a significant amount of money because using the money would be reduced, which would result in savings through less cash management. The second objective to achieve is the possibility that the money that is currently in the case of a person or a safe again enter the banking network. This could potentially create a huge advantage for the economy, "he reiterated.

 
 

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