Digi Pay

TEAM # 175

Overview
We p ro p o s e a f e a t u re r i c h c a r d p a y m e n t m e c h a n i s m w h e re a c o n v e n t i o n a l
i s s u a n c e o f a p h y s i c a l d e b i t o r c re d i t c a rd w o u l d b e c o m e a t h i n g o f t h e
past.
A c re d i t a n d d e b i t c a r d w o u l d b e m a d e a v a i l a b l e i n a d i g i t a l f o r m w h i c h
c a n b e a c c e s s e d f ro m a u s e r s m o b i l e d e v i c e s u c h a s s m a r t p h o n e o r
t a b l e t t h a t s u p p o r t s b i o m e t r i c o r P I N a u t h e n t i c a t i o n , a n d i n t h e p ro c e s s
t h e i s s u i n g b a n k s t o p s d e l i v e r i n g a p h y s i c a l p l a s t i c c a rd t o t h e i r e n d users.
T h e h u g e a m o u n t s p e n t o n i s s u i n g a p h y s i c a l c a rd c a n b e d r a s t i c a l l y
re d u c e d b y i s s u i n g a d i g i t a l c a r d a n d s t o re i t i n s m a r t p h o n e o f a
c o n s u m e r.
Ideathon 2016: Digi Pay

What is not right?

When the world is moving digital and paperless why we
still use physical cards?
How to reduce the turnaround time to get a replacement
card right in your wallet as soon as you lost one ?
A day without your wallet in a metro is now not a distant
dream
Aligning with Cognizant Vision 2020 we propose a
payment mode via a mobile application that acts as a
virtual debit or a credit
card.
Ideathon
2016: Digi Pay

Issuer Requirements in Current

Environment
Expanding
geographic and
product/ service
reach

Business intelligence
(Behavioral study)

Integration of
existing multiple
platforms

Leveraging New
Channels

Global delivery
business model
with a right
mixture of
standardization
Ideathon 2016: Digi Pay
and customization

Fraud Risk Mitigation

Efficient information management

To improve productivity
Reduction in operating leverage
Lowering Transaction Costs to Stay
Competitive

Customer Journey Map

Approac
h the
eligible
user for
a credit
card

Verify enduser
credentials
and credit
history

The card and pin

details reaches to
the consumer.

At least 10
days
required for
verification
and issuing
a card.

Issue a plastic
card to the
customer which
incurs a cost.

Ideathon 2016: Digi Pay

Initialize
the card via
an ATM
kiosk

Card has
been
activated
and is ready
to use

Card validity
expired /card
stolen. For
reissuance
follow a
tedious
process

Costs that a bank incur to issue a card

Postage 61 Cents
Activation Sticker
3 Cents

Processing 27
Cents
Shipping to
Processor 3
Cents
EMV Chip 1
Dollar
Total $2.11
Plastics/inks 17
Cents

An average bank spends an

estimated amount of nearly
$2 in order to issue a Debit
or a Credit card to its
customers.
Multicolored inks and
holograms are added to
sheets of plastic, then cut
into individual cards.
Shipments are transported
to a processor, personal
information is encoded and
embossed, EMV Chips are
added and a packet is
stuffed and mailed.

Ideathon 2016: Digi Pay

How to make life easier

Ideathon 2016: Digi Pay

Solving it our way

An eligible customer of a bank would be provided with an APK (android) or IPA
(iOS) file which would function as a digital debit or credit card.
Every APK file would contain all the authentication details that a physical card
magnetic strip / chip is embedded with today. The data would be in an
encrypted format and would act as a digital card.
The end-user would have to fire up the app by authenticating via fingerprint
authentication or choose a second backup authentication using PIN in order to
display a QR code and the Card number/CVV. The QR code would have all
authentication details encrypted which would be analogous to todays
magnetic strip and chip of a physical plastic card.
Ideathon 2016: Digi Pay

Implementing the solution

Customer can pay via the Digital Card App from mobile for payment in Brick and Mortar
shop , withdrawing cash in an ATM counter and Online E-commerce after initial bio-metric
(Finger Print) authentication and providing dedicated PIN .
While paying in supermarket for example, instead of swiping, tapping or dipping a physical
card; the card holder would open the App to make the QR code associated with the card
visible and would scan the QR code by a QR reader to complete the transaction, thus
removing any third party interference.
If a customer loses the access to APK/IPA, the replacement card (APK/IPA) can be
downloaded from online banking portal of the respective bank by using their existing net
banking credentials. This feature can reduce the re-issuance of a card from 10 days to 10
mins.

Ideathon 2016: Digi Pay

Proposing one method for implementation,

you may have thousands!
Banks would provide the download APK option for existing users
via the banks web portal, and same for the new users after they
have applied for a credit card or hold a savings account.
The users will download the APK and link the app with a bank
account that they currently hold.
Once set the existing cards if any would be shown for linkage on
the app. One time authentication would be asked to set up
backup PIN and if hardware permits a biometric authentication
And voila, the user is good to go.
Ideathon 2016: Digi Pay

Card Circulation all over the world apart

from US.
Series 1
M
I
L
L
I
O
N
s

Series 2

700
600

563 MN

576MN
526 MN

545 MN

500
400
300
200

54.1 MN

100
0

2013

2014 MC

2013

2014 VISA

Ideathon 2016: Digi Pay

2013

57.3 MN
2014 AMEX

Card Circulation in United States.

Series 1
M
I
L
L
I
O
N
s

Series 2

350

304 MN
300

285 MN

250

178 MN

200

191 MN

150
100

53.1 MN

54.9 MN

50
0

2013

2014 VISA

2013

2014 MC

Ideathon 2016: Digi Pay

2013

2014 AMEX

Banks to save, but how much?

In INDIA approx. 132 million plastic cards are issued per
year as per RBI.
To issue a plastic card and get it delivered to a
consumers door step a bank shells out approximately
100.
Our environment friendly and cost saving alternative can
save in India alone 6.6 BILLION considering if we only
convert 50% of existing user base into the DigiPay mode.
Ideathon 2016: Digi Pay

Tangible and in-tangible benefits

A huge savings on the part of the banking sector who currently
spend millions on printing and logistics for such cards.
An user is no longer required to carry multiple cards in the wallet, a
smart phone is enough to carry multiple cards.
Bio-metric authentication adds a second layer of security.
No plastic hence more eco-friendly
Displays no information of your card to a stranger unless you
authenticate the app to do so.

Ideathon 2016: Digi Pay

Some more benefits

The pre-approved cards or a re-issued card can be downloaded

by a user right away, eliminating present turnaround time from
days to minutes.

Reach out to large customer base. Eligible account holders can be

given pre-approved cards which can be downloaded right away
from web portal.

Any offers available to a account holder of a bank but not

possessing the card can download the card right from web portal
anywhere.
Ideathon 2016: Digi Pay

Value Proposition Canvas

Customer

Value
Gain Creators
Products
& Services
A mobile
mobile application
application for
for
A
digital debit
debit and
and credit
credit
aa digital
card
card
that is
is easy
easy to
to maintain
maintain
that
and
use.
Bank
connects
and use. Bank connects
more closely
closely to
to aa
more
customer to
to convert
convert
customer
potential customers
customers to
to
potential
real customers
customers
real

Minimum cost
cost
Minimum
incurred for
for card
card
incurred
issuance.
issuance.
Prospective
Prospective
Customers for
for
Customers
particular feature
feature
particular
cards can
can be
be
cards
identified and
and
identified
approached right
right
approached
from the
the app
app
from

Pain Relievers
Minimum turn
turn
Minimum
around time
time to
to issue
issue
around
or re-issue
re-issue aa card
card to
to
or
potential customer.
customer.
aa potential

Ideathon 2016: Digi Pay

GAINS
The bank
bank would
would no
no
The
longer need
need to
to
longer
issue plastic
plastic cards
cards
issue
of such
such high
high
of
volume and
and can
can
volume
reduce the
the cost
cost of
of
reduce
logistics.
logistics.

Pains
The issuing
issuing
The
bank has
has to
to pay
pay
bank
hefty sum
sum in
in
hefty
order to
to provide
provide
order
plastic card
card to
to
plastic
its customers
customers
its

Customer Jobs
1. Issue
Issue card
card to
to
1.
consumer
consumer
2. Reissue
Reissue aa card
card
2.
it is
is
ifif it
lost/expired.
lost/expired.
3. Bear
Bear logistics
logistics
3.
cost for
for card
card
cost
delivery
delivery

Business Canvas Model

Key activities
Digital Debit and Credit card
issuance
Bio-metric authentication
along with PIN authentication
in supported devices
Fast re-issue of card and
availing pre-approved cards

Key partnerships
Issuing Banks
Sales team
Software maintenance team

Cost Structure
QR Scanner: $40 per set
Software and hosting Cost: $8000

Value
Proposition
Issuing
cost reduction

Customer
Customer
Relationships Segments

Greater customer
conversion
Easy to market preapproved cards
Less turn around time
greater satisfaction

Sales team
Developer and
maintenance
team

Key resources

Issuer Banks

Channels

QR scanner
Cognizant Sales team
Application for all mobile devices
Existing clients
Back end servers and security protocols
Cognizant Whitepaper

Revenue Stream
Software Development maintenance
Proprietary rights if can be attained

Ideathon 2016: Digi Pay

Customer Persona
Name : Issuer Bank

Goals :

Negating issuance cost of card.

Reducing turn around time for reissuance of expired cards.

Approaching prospective customers easily.

Location :
Any banking organization
issuing cards.
Technology:
Needs:
Mobile App Developmen
Faster & simpler card issuance system
Platforms.
Maintaining number of cards via single device.
Back end server
Frustrations:
High issuance and logistics cost of cards.
Greater idle time for customers with legitimate cards
Ideathon 2016: Digi Pay

Ideathon 2016: Digi Pay