Payment on internet by the screen tap, without leaving sensitive data on payment instrument – IPS scan

In cooperation with banks participating in the NBS IPS system, the NBS has introduced yet another innovative way to make instant payments. It has upgraded the current way of making online payments as users, in addition to scanning the merchant’s IPS QR code, can now pay online by making a click in their browsers via deep link technology.  

All users need to do is to choose on the merchant’s website which they access with their, for instance, mobile phone, the already well-known option IPS scan and then choose the bank with whose application they wish to make a payment. Then they should click the Pay button. The data from the merchant needed for payment are taken over, and the m-banking application opens with information on the payment sum. The user than carries out authentication in the usual way – through PIN, fingerprint or face recognition, and the transaction is executed in a few seconds.

In this way, users get a safe and simple solution to make their purchases with their mobile phones only, in the safe environment of their m-banking application, without leaving data on their payment instrument online.

The participants in the NBS IPS system that have enabled the above payment functionality for their m-banking application users are:

·         AIK banka a.d. Beograd
·         Banca Intesa a.d. Beograd
·         Unicredit Bank Srbija a.d. Beograd
·         Komercijalna banka a.d. Beograd
·         Eurobank Direktna a.d. Beograd
·         Raiffeisen banka a.d. Beograd
·         OTP banka Srbija akcionarsko društvo Novi Sad
·         Erste Bank a.d. Novi Sad

All these participants offer this payment method to citizens. The participants that offer this option to legal entities and entrepreneurs that use the m-banking application are:

·         Banca Intesa a.d. Beograd
·         Unicredit bank Srbija a.d. Beograd
·         Eurobank Direktna a.d. Beograd

Banca Intesa a.d. Beograd and Komercijalna banka a.d. Beograd provide merchants with the service of accepting instant payments via deep link. Payments can now be made in this way (with a single mobile device) on the websites of merchants such as:

www.laguna.rs, www.winwin.rs, www.gigatron.rs, www.korisnaknjiga.com.

Instant payments bring numerous advantages to small and large online merchants. This is reflected in the initiative of small merchants such as Korisna knjiga d.o.o. that was the first to embrace the above instant payment functionality in its online shop. This shows how simple it is to implement instant payments in online shops. We hope that the example of Korisna knjiga and all the above merchants will encourage other online merchants to introduce IPS payments on their websites, in cooperation with their banks, particularly given the low merchant fees that banks can offer for IPS payments.

For the sake of reminder, online instant payments do not entail the re-typing of data as it is the case with online card payments. They are also safer than card payments as the buyer does not enter any data concerning his/her payment instrument on the merchant’s website – unlike card payments, when it is necessary to type in the card number and other data. The risk of abuse of a payment instrument in case of instant payments is therefore significantly reduced.  

With its exceptionally favourable tariff policy, the NBS has created the conditions where instant payment acceptance costs are much lower for merchants than card acceptance costs, i.e. banks can offer these transactions to merchants at much lower fees. The NBS thus motivates small merchants that do not accept payment cards in their online shops to introduce this innovative and cost-effective option, which is significant for the further development of e-trade.

In addition to the above banks, when making purchases with their mobile phones, users will be able to see the m-banking applications of other banks that are in the pilot phase of implementation and that currently provide the new functionality only to a limited number of users. These banks are: Halkbank a.d. Beograd and Credit Agricole banka Srbija a.d. Novi Sad. Once these banks get the NBS’s approval to offer the new functionality to all citizens, the NBS will inform the public. Other banks are in the testing phase.

By introducing the new payment service via a single mobile device, the NBS and banks enhance the simplicity and safety of online purchases, which is something buyers expect and require from online merchants. The IPS scan payment method is therefore an additional impetus for the development of online trade in Serbia.