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DISRUPTIVE INNOVATION
which in turn allows financial institutions,
services providers and merchants to gain
greater understanding of customers and
businesses. This will help in improving their
ability to extend loans to customers who
were previously less understood.
Majority of the payment systems are aimed
towards non-cash transactions. The non-cash
transactions are growing at an average of 912% Y-o-Y. The variable costs which is the cost
of making electronic transactions will fall as
electronic payments gain more volume.
iNM
P2P transfers
Person-to-person payments (P2P) is an
online technology that allows customers to
transfer funds from their bank account or
credit card to another individual's account via
the Internet or a mobile phone.
• Mobile money
Mobile Money is a secure and
affordable way of banking, and it’s available to
customers on all cell phone networks. One
need not carry cash for making payments and
making payments of very lower denominations
are also made easy.
The risk involved with the innovations
are that they may lead to unforeseen
consequences and establishing widely
accepted standards might be tough.
•
A few of the innovations in payments system
are discussed below.
Cryptographic protocols
A cryptographic protocol is a
procedure carried out between two parties
which is used to perform some security task.
Typically cryptographic protocols make use of
one, or more cryptographic primitives or
schemes. The greatest potential for crypto
currencies is to radically streamline the
transfer of value, rather than as store of value.
•
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