HDFC Bank: An offline digital payments pilot project has been launched by HDFC Bank, the largest private sector bank in India. Under the Regulatory Sandbox Program of the Reserve Bank of India (RBI), HDFC Bank has introduced the OfflinePay solution in partnership with Crunchfish. The use of a mobile network is not required for customers and businesses to send and receive payments using this solution.
HDFC Bank is the first bank in the country to launch such a solution, making it possible for digital payments to take place in areas with poor mobile network coverage, including rural towns and small villages. The OfflinePay solution is also convenient for cashless transactions at large public events, trade fairs, and exhibitions, which are typically congested with mobile network traffic.
Traditional digital payment methods require one of the parties involved in the transaction to be online, making it difficult to use in areas with poor connectivity. However, HDFC Bank's solution called "OfflinePay," will allows both the merchant and customer to conduct transactions without an internet connection.
HDFC Bank said the solution enables merchants to receive payment confirmation in offline mode, and transactions are settled once either the merchant or the customer is back online. The service will be available to users of other banks via an invitation link during the four-month pilot phase, which will take place in 16 plus cities and towns across India. During the pilot, the transaction amount for OfflinePay will be limited to INR 200 per transaction.
Additionally, offline payments can be made in network blind spots such as underground metro stations, parking lots, retail stores, airplanes, trains, and ships. The RBI approved the application, developed by HDFC Bank and Crunchfish, in September 2022 as part of the regulatory sandbox program. The success of this pilot project could mark a new era in offline digital payments in India.
Crunchfish Digital Cash AB is a subsidiary of Crunchfish AB, a company listed on Nasdaq. The partnership between HDFC Bank and Crunchfish has been a continuous effort to work with the RBI on the regulatory sandbox program. If the pilot project proves successful, it could lead to a wider adoption of offline digital payments in the country.
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