Visa and Innoviti Payment Solutions have teamed up to expand Proof of Concept (POC) for offline payments in India.
The partnership will enable offline payment in the country using Visa cards, in line with the Indian government’s strategy to promote financial inclusion across the country.
The Visa debit card will have a chip that holds a stored value of a daily spend limit of INR 2,000 and have a per transaction limit of INR200, which are the limits mandated by the RBI currently.
Innoviti, which provides payment solutions to offline enterprise merchants, executed POC in partnership with Yes Bank and Axis Bank.
Visa India and South Asia group country manager TR Ramachandran said: “With the RBI’s cognizance of low and no connectivity being major impediments to financial inclusion, offline payments have emerged as an innovative and low-cost solution, where internet connectivity and failed transactions are top concerns of consumers and merchants.”
“Visa aims to change the way we pay, and this POC is going to do just that. We also aim to work with more issuers to scale this solution across banks and their cardholders,” Ramachandran added.
The offline payments technology is expected to help enhance reach of digital payments into India’s small towns and remote areas.
Through chip-based debit, credit, and prepaid cards, Visa and Innoviti aims to bring down dependency on internet for payments acceptance even in places with low or no internet connectivity.
Innoviti Payment Solutions India MD and CEO Rajeev Agrawal said: “Offline payments are a fast, reliable, and low-cost way of solving this problem that can change the way payments happen. We are excited about partnering with Visa, Yes Bank and Axis Bank in this pilot.”
In June last year, Innoviti increased its employee stock options plan (ESOP) pool to $10m.
The ESOP pool was created as a part of the structuring conduct during a fund raising.
In 2019, the firm launched Innoviti-POS card payment acceptance solution to make it easier for smaller retailers to adopt the digital channel.