Recently I have posted about a mobile app X here on Bangalore Startups.
I have got interesting replies and the reason why prepaid systems wont work in india because of RBI regulations. I was wondering if this is possible. Again I’m just curious and hence asking the question, I have no plans of taking the approach forward.
-A person visits my site pays 100RS and buys 100units of X
-His account gets credited with 100Units of X
-He shops online and when its time to pay the vendor instead of paying in RS he is paying in units of X
-Basically X is a virtual unit of currency.
RBI can definitely not regulate this. Because i am selling an unit of commodity for the money my customer has paid.
Yes i know about Bitcoin ban in india and i assume this would not fall under the same category and moreover RBI does not have a valid reason for bitcoin ban in india. There is no framework that actually prevents people from trading bitcoins.
Again things are not this simple there is something that i am definitely missing.
Mobile App X. (For obvious reasons i cannot share how the whole thing will work. )
-Traditional payment gateways have long and lengthy procedures of entering passwords and card numbers
-Mobile App X is just one button click away from paying anyone online. Literally one button.
-No need to enter userid or password or information of any kind on the website
-The website does not even store details about your account
-you just have to pull out your phone out and click the button and ta da its payed
-No you do not have to enter the amount as well
-Websites just have to use the API. No need of setup
-Mobile App X is just like an e wallet but much much simple.
-You can transfer money to other Mobile App X or receive from another App X just with one click
-The setup would be completely free
Problems with the approach:
-Like airtel money we will have to do a prepaid fill of the wallet
-Payment gateways now charge anywhere between 1% to 3% and these charges would be an overhead to the user
-It’s literally a single click. Book something online goto checkout page. Click X to pay. Then open your phone and press a button.
-0% transaction charge for any ecommerce website. No setup charge of any kind.
-Transaction can never fail.
-Since the whole system is a closed loop with very minimal amount going out of the system. Its the same model as how a bank works.
-There is something definitely that i am missing in this. It is not this simple
-As an individual i definitely cannot take this idea anywhere.
-So if anyone genuinely interested i can share the idea with you. I will build the whole application from end to end. You just have to take it forward.