SPICE DIGITAL: An Innovative Payment Solution Based on India Stack

CIO Vendor Some would consider demonetization a stroke of genius. It has triggered a growth spurt in digital payments, paving the way for India towards a cashless economy as India has one of the largest numbers of unbanked families. This is potentially one of the largest bases to capitalize on and push forward the cashless economy concept. The second point of argument would be that the value of notes in circulation in the economy is 12.2 percent of the GDP, higher than quite a few countries. India's Cash holdings in the system CIC (Currency in Circulation) in FY16 have increased by 2240 Billion INR, compared to the years before that. The Central bank struggles and endeavors to adjust the liquidity condition and handle the influx of undocumented money. Recent researches conducted project that a decrease of 10% cash transactions will save 10 Billion INR per year for the country, a massive amount. This makes a compelling case and in essence, an incentive for people to resort to online transactions and mobile wallets, providing convenience without the need to adhere to strict banking hours. It also offers merchants with Multichannel Payment Services. The mobile wallet market is most decidedly a lucrative one, with investors ready to pump in money. But it is perceived as a security threat and lack of privacy over mobile payments is considered a major factor inhibiting the m-wallet adoption. Spice Digital Limited, formerly known as Cellebrum Technologies Limited, in an effort to bridge the gap between the served and the underserved launched a comprehensive wallet Spice Money. It is a retailer assisted model that allows cash transfer from retail locations & instant fund transfer to all bank accounts across India.

Striving for Continuous Improvement
Spice Digital is committed to maximizing value for all stakeholders by serving the underserved through their Products & Services and bridge the Digital divide in India. The Company was founded in 2000 to provide customized VAS solutions to Telecom operators. Spice Digital is a part of the Spice Connect – a conglomerate promoted by Dilip Modi. Currently the company's client list includes the world’s leading Telco & Payment brands.

Recognizing the fact that multiple financial technology groups are entering the mainstream, rapidly and voraciously; every company must gear up with a strategy to harness the powerful advantages of the new financial technology revolution. Striving for continuous improvement and on closing the capability gap, Spice Digital has been appraised at Level 3 of the CMMI Institute’s Capability Maturity Model Integration along with ISO 9001 and 27001 Certification.
Spice Digital has fully equipped themselves with their in-depth expertise to ride the wave of growth and emerge as one of the leading solution providers in the financial technology services sector.

Spice Money uses India Stack based electronic know-your-customer process (eKYC) to verify users’ credential and onboard merchants/retailers

Bridging the Digital Divide
Delving deeper into Spice Digital’s payment solution, the company assists the underserved section of the society through its strong Agent Network using the Semi-closed Wallet – Spice Money, enabling Direct Money Transfer (DMT) to all bank accounts across India. Available with a set of diversified features, the 30,000+ Spice Money Customer Service Points offer Domestic Money Transfer (DMT), Airtime, DTH, Railway, Bus & Air Tickets, Bill Payment – Utility, others, Aadhaar printing & information update, Insurance & Investments using O2O (offline to online) payments to the low-income households. Additionally, the Spice Money app is a miniature version of the actual web based portal, giving agents an ease and flexibility to provide service to their customers from any location.

Economy Going Card-less
New studies conducted show that only two million Point of Sale (PoS) machines facilitate Debit/Credit Card payment to Merchants. Spice Money Payments Solution aims at enabling over 660 million+ Aadhaar linked bank account holders to transact card-less across merchant locations. The hindrances caused to carry debit/ credit card or the hassle of remembering the PIN will be solved with the card-less/ wallet-less mobile transactions using just the Biometric ID. Also, the Merchant will also have a low-cost option of accepting payments card using a Mobile PoS provided by leading banks. Furthermore, the company offers Spice Money eKYC/authentication solution where Spice Digital as a registered Authentication User Agency (AUA) & KYC User Agency (KUA) enables Aadhaar-based client authentication system for enterprises. Spice Money uses India Stack based electronic know-your-customer process (eKYC) to verify users’ credential and onboard merchants/retailers.

Also, Spice Digital has received an in-principal approval from the Reserve Bank of India (RBI) to operate under the Bharat Bill Payment System (BBPS). Spice Digital Ltd. as a Bharat Bill Payment Operating Unit (BBPOU) offers bill payment services to customers through network of agents using O2O payments for Electricity, Municipal, Postpaid and other utility bills.