FSS Partners with India Post Payments Bank to Advance Financial Inclusion

FSS (Financial Software and Systems), a leading global payment processor and provider of integrated payment products, has continued to promote financial inclusion among underserved and unbanked segments. Its latest partnership with India Post Payments Bank (IPPB) strengthens this mission.

FSS’ latest collaboration will allow IPPB to use FSS’ Aadhaar Enabled Payment System (AePS) to deliver interoperable and affordable doorstep banking services to customers across India. FSS’ AePS solution combines the low-cost structure of a branchless business model, digital distribution, and micro-targeting that lowers acquisition costs and improves reach. This strategic partnership offers significant opportunities to bring millions of unbanked customers into the financial mainstream.

“We are proud to be IPPB’s technology partner in this monumental nation-building exercise. The collaboration is evidence of FSS’ deep payments technology expertise and commitment to bringing viable, market-leading innovations that promote financial deepening. FSS’ AePS solution combined with IPPB’s expansive last mile distribution reach empowers citizens of the country with a range of digital payment products and advance India’s vision towards less-cash economy,” said Krishnan Srinivasan, FSS’ Global Chief Revenue Officer.

FSS’ eFinclusiv AePS provides the payment processing backbone for the service and is designed for population scale.  The solution is device agnostic enabling IPPB to outfit postal delivery agency with any Micro-ATM make. By assuming authorization and authentication functions, the solution offloads the Switch, significantly reducing the overall total cost of ownership for customers. At the backend, an API-driven architecture allows the solution to integrate with the Core Banking System and Unique Identification Authority of India for (social id)  Aadhaar authentication.

Leveraging its vast network of over 136,000 post offices, and 300,000 postal workers, IPPB has been setup with the vision to build the most accessible, affordable, and trusted bank for the common man in India to deliver banking at the customer’s doorstep. With the launch of AePS services, IPPB now has the ability to serve all customer segments, including nearly 410 million Jan Dhan account holders, giving a fresh impetus to the inclusion of customers facing accessibility challenges in the traditional banking ecosystem.

“Through the vast reach of Department of Posts network along with the advent of the interoperable payment systems to drive adoption, IPPB is uniquely positioned to offer a range of products and services to fulfill the financial needs of the unbanked and the underbanked at the last mile. Having launched AePS services, the Bank has become the single largest platform in the country for providing interoperable banking services to customers of any bank. The strategic partnership with FSS provides us with an opportunity to expand the portfolio of financial services and improve customer experience whilst maintaining operational efficiency, thus building a digitally inclusive society,” said J. Venkatramu, MD & CEO, India Post Payments Bank.

FSS’ eFinclusiv AePS serves as the world’s largest interoperable payment services infrastructure. Customers of any bank can avail the service and transact using their social id card linked to a bank account. This has:

  • Expanded rural infrastructure by 2.5X
  • Reached India’s 625,000 rural towns and has played a vital role in delivering doorstep banking services at the time of the pandemic
  • Disbursed 1.08B USD at the time of the pandemic, delivering cash to citizens in the remotest corner of the country at their doorstep
  • Provides an example of frugal innovation. Customers do not even require a phone to transact

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