Acculynk Inc. previously cast its online PIN-debit service overseas, but it has landed what the company considers “a major development in a burgeoning market” in becoming the provider enabling RuPay cardholders in India to initiate online transactions.
The Atlanta-based company and National Payments Corp. of India announced May 29 that Acculynk will provide its PaySecure PIN-authorization software for all online transactions initiated with the RuPay card, which National Payments launched as a PIN-based debit card for use at ATMs and the point of sale. National Payments announced its intent to launch the card in March 2011 (see story).
The partnership with National Payments, the umbrella organization of all retail payment systems in India as established through India’s banks and the Indian Banks’ Association, was attractive to Acculynk strictly because of the significant number of debit card users in India, Ashish Bahl, Acculynk CEO, tells PaymentsSource.
More than 250 million consumers have debit cards in India compared with 25 million with credit cards in a country of 1.2 billion people, Bahl notes.
“The fastest way for these debit card consumers to get into e-commerce was through activating their debit cards online,” Bahl says.
After six months of research and negotiations, National Payments chose Acculynk’s PaySecure because it represented the best balance between a good consumer experience and security, Bahl contends. Though a specific launch date has not been set, the service will be available to RuPay cardholders this year, Bahl says.
“With other providers, it was my understanding that the consumer drop-off rate was too high after starting a transaction because of too many steps,” Bahl says.
When using PaySecure, the consumer needs only to enter his debit card number and PIN when the virtual PIN-entry pad comes up on the screen” of the merchant website, Bahl explains.
“There is no need to create new passwords or PINs, and no redirection to another website for payment,” Bahl adds.
Bahl did not disclose specific figures, but says Acculynk charges clients a transaction fee, which varies by country, and a fixed service fee. As a payments network, National Payments applies its interchange rates to the transactions.
Acculynk has partnerships with 11 electronic funds transfer networks and six payment processors, who do not need special software to process PaySecure payments, the company stated in a press release.
Acculynk finds itself in a good place in obtaining the online PIN authorization role for RuPay cardholders, but it also helps National Payments establish the RuPay card over other debit card options, Zil Bareisis, a London-based senior analyst for research firm Celent, tells PaymentsSource.
Before the RuPay card was launched, most banks would have been issuing Visa debit and MasterCard Maestro cards, Bareisis suggests.
“With RuPay being a PIN-debit card, it was only possible to use it at the ATMs and physical POS, not e-commerce,” Bareisis adds. “Acculynk’s PaySecure enables these cards to be used online.”
As such, the partnership was not developed as a way to get cardholders comfortable using their PINs online, but more about enabling them to use their cards at all, Bareisis notes.
Still, the question of whether the customers will be comfortable entering their PINs at an online pad remains to be seen, Bareisis contends.
National Payments officials are confident the PIN-debit capabilities online will result in a flood of e-commerce consumers.
“We expect to bring millions of RuPay consumers to e-commerce,” A.P. Hota, National Payments, managing director and CEO, stated in a press release.
Bahl views the partnership as another of what he hopes will be many international steps for Acculynk.
“This is Acculynk’s first major foray overseas,” he says. “It’s very exciting for us and could lead to discussions with other Pacific Rim countries.”
Late last year, Acculynk began its pitch for luring international business when creating the International Internet PIN Acceptance Consortium as a way to establish PaySecure as the method to enable secure Internet transactions across international borders (see story). Just before establishing the consortium, the company began a test in Puerto Rico it hoped would lead to some Latin America business (see story).
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