Article 8: Sri Lankan’s National Payment Network Provider - Enabling a Digital Lifestyle - Lanka Pay

Introduction

In the present article, I intend to elucidate the role and responsibilities of the national card payment network provider in Sri Lanka. I will also discuss the products and services they offer to both B2B and B2C segments within the local market. Lanka Pay is recognized as the national payment network provider in Sri Lanka, with a primary focus on providing infrastructure and services to other key stakeholders such as banks, financial service providers, fintech organizations, and government institutions. This aids in the seamless and secure execution of transactions. In addition to infrastructure and services, Lanka Pay is committed to promoting financial inclusion and supporting businesses, end consumers, and the government of Sri Lanka in driving the country's economy forward. Let's look at the vision and mission of Lanka Pay.

Vision and Mission of Lanka Pay

1.??? Vision – In everything we do, we believe in the value of our time.

2.??? Mission – We value your time by innovating solutions that are simple, faster, and secure.

Through an examination of their vision and mission, it becomes apparent that Lanka Pay places great emphasis on the significance of time for its citizens, and is committed to providing innovative solutions in a timely manner. Additionally, Lanka Pay has outlined four fundamental values that underpin its approach to fostering innovation, competitiveness, and delivering exceptional services to its stakeholders.

Four Values identified by Lanka Pay to maintain its sustainability and competitiveness in the marketplace

01. Innovative- The company places a high value on innovation, viewing every problem as an opportunity to generate creative ideas that address identified challenges.

02. Collaborate - The company recognizes that collaboration and a positive work environment can yield outcomes that exceed expectations. As such, the company encourages all stakeholders to work together to deliver high-quality results for end consumers, banks and financial institutions, government entities, merchants, and others.

03. Inclusive - The company is committed to promoting financial inclusion for all members of Sri Lankan society, regardless of age, status, religion, or race. The company believes that diversity is a key factor in its success.

04. Convenient – The company prioritizes convenience and simplicity in all its interactions and endeavors. By introducing innovative solutions, the company aims to make life easier for consumers and other stakeholders.

Epic Journey so Far

KEY MILESTONES of LANKA PAY

Lanka Pay embarked on its journey with a modest start and a tenacious mindset. Herein, I aim to expound on the significant achievements the organization has attained.

2002 -2006

Lanka Pay was incorporated as Lanka Clear (Pvt) Ltd under the supervision of the Central Bank of Sri Lanka. Commenced nationwide T+1 cheque clearing facility for the first time in South Asia and 2nd in the world.

2009 - 2011

Launched Lanka Sign – The only commercially operating certification authority in Sri Lanka. Launched SLIPS for same-day electronic fund transfer – 1st to implement in South Asia. Enhanced security of cheque clearing with direct connectivity and extended service hours to submit cheques for clearing.

2013 -2015

Launched the Lanka Pay Common ATM network in 2013.Launched computer security incidents response team “BankCSIRT” (Later it was renamed as FinCSIRT in 2015). Launched Common Electronic Fund Transfer Switch (CEFTS) for real-time payments, launched shared ATM network (SAS), Lanka Pay card Management system, Launched Lanka Pay common POS switch (CPS) and Common Mobile Switch. Finally introduced USD online payment system.

2016 - 2019

Launched “Just Pay” for mobile payments. Became the first entity in Sri Lanka to obtain the certificate for PCI DSS version 3.2, introduced digital signatures to promote a paperless environment, launched LPOPP (Lanka Pay Online Payment Platform) for government payments, and finally introduced Lanka Pay Techno-Innovation awards for appreciating the stakeholders and highlighting their contribution towards vision and mission of Lanka Pay and Sri Lanka economy as an overall aspect. Introduced a process for liability to shift from issuer to acquirer for EMV-enabled transactions (Euro pay, Mastercard, and Visa). Implemented the back end to facilitate Lanka QR, Introduced the National Card Scheme (NCS), and many more.

2020 - 2024

Launched Payment Exchange Name – PEN Solution, launched Direct Debit as a second phase of CEFTS scenario two and implemented an automated customer support system (ACSS). Introduced the 5th settlement cycle for the common card and payment switch (CCAPS), enabling online tax payments to the Department of Inland Revenue (IRD). Enabled online payments to the Sri Lanka Ports Authority (SLPA). Implemented CITS clearing and settlement interface contingency solution (CSI – CS), Upgraded the common card and payment switch (CCAPS) to the next version, and finally, the organization name has been changed from Lanka Clear to Lanka Pay (Pvt) Ltd. Launched Lanka Remit – a national remittance mobile application, launched pay Me application, obtained membership of the Asian Payment Network (APN), Integrated with Union Pay International for Lanka QR, and finally in collaboration with JCB International, launched the first Lanka Pay with credit card together with the commercial bank Sri Lanka. Obtained web-trust certificate and partnered with NPCI to accept cross-border UPI payments at Lanka QR merchant locations.

Lanka Pay has successfully implemented several initiatives, which I have listed below. Additionally, the organization has developed many other strategies and plans to improve the payment landscape of the country. To achieve this, Lanka Pay has been engaging with a range of stakeholders, including CBSL, government agencies, banks, financial institutions, fintech firms, and other associations. Through these engagements, they discuss their strategies, plans, and the way forward.

Here are some of the products and services introduced by Lanka Pay in the market so far.

Products and Services introduced

1.???? Real-time payments or near real-time

2.???? Allow to transfer a maximum of up to LKR 5Mn.

3.???? Only between Lanka Pay CEFTS-enabled member banks or financial institutions.

4.???? Can perform transactions 24/7/365 days without any hassle.

5.???? No matter where you are.

6.???? Can initiate the transaction through front-end channels such as Mobile, Internet or online, Wallets, ATMS, and even over-the-counter transactions.

7.???? Transactions are secure and safe due to the validation and authentication process (For example through OTP verification)

8.???? Operate under the guidance of the Central Bank of Sri Lanka (CBSL)

9.???? Compliance with the highest security standards including PCI DSS version 3.2. ?

10.?? Account numbers and formats differ based on the bank or financial institution. But most of the time, 10-15 digits are applicable for the account number.

11.?? Fees are applicable as below.

1.??? Internet or mobile banking – Rs 30.00

2.??? Over the counter – Rs 100.00

3.??? Own ATM – Rs 30.00

4.??? Third Party ATM – Rs 100.00

12.?? 47 member banks and financial institutions facilitate CEFTS transactions – Real-time or near real-time transactions.

2. Direct Debit (CEFTS Scenario 2)

01.?? ?Authorize your bank to automatically deduct payments from your respective account on a specific date.

02.?? Can automate your payments on due dates.

03.?? A wide range of payments can be conducted such as Utility bills, Insurance bills telecom bills, and more.

04.?? No more late fees / Missed payments.

05.?? Maximum chargers up to Rs 50.00 per transaction

06.?? Bills will be settled on time.

3. ?Just Pay

01. ?Easily link your account to your preferred mobile application or E-commerce site

02. Whether you’re doing shopping online or scanning Lanka QR at a merchant location

03. ?Transactions are secure and safe.

04. The maximum amount you could utilize by using Just Pay is maximum to Rs. 50,0000 but Lanka QR facilitates a maximum of LKR 200,000.

05. ?SMS banking should be mandatory to enable the Just Pay facility.

06. More than 15 mobile applications and wallets are powered by the Just Pay solution and three E-commerce sites were already on board such as CAL, Hela Pay, and Kapruka.

4. Sri Lanka Inter-Bank Payment System (SLIPS)

01. The platform will enable the completion of the transaction within the day. (Not processed in real-time).

02. Transactions can vary from utility bills, salaries, standing orders, peer to peer-to-peer transactions.

03.?Payments are secured and safe.

04. Unlike CEFTS, SLIPS are used by almost all financial and bank institutions.

05. More reliable and affordable payment method

06. There are three cut-off payments introduced by CBSL to accept and process the transactions.

07.?Credit and debit transactions can be supported.

08. There are two participants in the ecosystem. Licensed Commercial banks and other financial institutions.

5. Lanka Pay online Payment Platform for Government (LPOPP)

1.???? Real-time payment or near real-time

2.???? There is no paperwork involved in the process.

3.???? No matter where you are, you can make payments seamlessly.

4.???? A User-friendly interface and payments can be arranged effortlessly.

5.???? Savings or current accounts can be used to make those government payments.

6.???? Affordable chargers

7.???? There are listed 10 government institutions to carry out LPOPP transactions.

1.???? Sri Lanka Customs

2.???? Inland revenue department

3.???? Employee provident fund

4.???? Board of Investment (BOI)

5.???? Sri Lanka Port Authority

6.???? Sri Lanka Standard Institution

7.???? Import and Export control department.

8.???? Department of Commerce

9.???? Central Depository system

10.????? Local authorities and government organizations

8.?The other 14 government institutions were categorized under Gov Pay and Sampath Bank, HNB Bank, and PABC are being facilitated to carry out transactions.

6. National Card Scheme / Lanka Pay Card

01.?Lanka Pay, JCB powered plastic card facilitates individuals for various purposes.

02.??Accepting by the vast majority of network & ATMs and merchants worldwide.

03.??Low-cost pride with specially reduced ATMS fees

04.??Accepting both local and internationally

05.??Rs 15.00 will be charged for every transaction when you withdraw from any ATM powered by Lanka Pay CAS.

06.??Can use a Lanka Pay card at any ATM or POS terminal when they use the logo of JCB international.

07.??There are a few banks that have partnered with Lanka Pay Cards, Commercial Bank, HDFB, NSB, MCB, People Bank, and RDB.

08.??The Lanka Pay card is co-branded with the JCB International scheme.

7. Pay me

1.???? Innovative and secure messaging service that creates universal payment links, enabling you to collect payments seamlessly.

2.???? Payments can be processed in real-time or near-real-time.

3.???? Pay me solution should be supported by mobile or web applications.

4.???? Has simplified both peer-to-peer and corporate payments.

5.???? Offering an effortless and flexible payment collection option.

6.???? Secure and safe payment method.

7.???? There is no mandatory use of account numbers and bank details while making payments.

8.???? Two applications are supported to carry out Pay me transactions

1. Direct Pay

2. Pay Master mobile and web applications.

8. Lanka QR

1.???? Any type of transaction can be completed if the merchant registers with the Lanka QR facility and displays the Lanka QR code.

2.???? Scan the QR, select the account number, confirm the amount and other details, and continue the payment.

3.???? Safe and secure way to do transactions.

4.???? No need to carry notes and coins.

5.???? There are more than 20 applications that support the Lanka QR facility.

6.???? Affordable charges are applicable.

9. Lanka Pay CAS (Common ATM Switch)

1.???? Introduced back in 2013.

2.???? CAS stands for Common ATM Switch as part of the Common Card and Payment Switch (CCAPS) initiative.

3.???? Through CAS, All ATMS are connected.

4.???? Can be accessed 24/7/365 days.

5.???? There is no required to be tied up with a specific bank’s ATM anymore.

6.???? Many benefits are available with CAS Solution not only for facilitating withdrawal of cash. ?

7.???? All leading banks and financial institutions relate to CAS solutions.

8.???? Cash withdrawal and balance inquiry chargers would be Rs 30.00 & Rs 7.5o respectively.

10. Payment Exchange Name (PEN)

1.???? Using a specific nickname and alignment of the mobile number to conduct the transactions.

2.???? Convenient and flexible payment option.

3.???? Secure and safe payment method.

4.???? Account details are not being shared with any third parties.

5.???? Additional security of having a PIN for each Nickname.

6.???? Seamless payment can be carried out between various platforms.

7.???? Sampath Vishwa's online banking application facilitates PEN transactions.

I explained only 10 solutions introduced by Lanka Pay, in addition to that, the Institute was able to launch another six solutions aimed at creating a payment environment and ecosystem that facilitates secure and seamless transactions while enhancing transaction volumes and quality. There are a few things I would like to highlight in this article. To achieve the objectives and vision of Lanka Pay which is monitored by the Central Bank of Sri Lanka CBSL, they have been organizing an annual award ceremony since 2017 called Lanka Pay Technology Awards to recognize those who have been delivering and promoting digital inclusion in Sri Lanka.

Lastly, I would like to mention that, Lanka Pay organized some sessions and workshops with their stakeholders, especially with banks and financial institutions to highlight the importance of popularizing digital payments and ecosystems among Sri Lankans by organizing some of the events such as Just pay web and pay me, Fintech forums, NIPL merchant Acquiring awareness sessions, Lanka Sign Rootkey ceremony and etc.

About the writer

Mr Dinuka Mandula Peiris – Practicing Marketer in SL, MBA (PIM-USJP), PgDipM (SLIM), CIM(UK), CPM (Asia), MSLIM, ACIM.

Currently working as a Sales Manager – Fintech and Digital payments at Epic Lanka (Pvt) Ltd.

Currently serves as a visiting lecturer at SLIM.

References

https://www.lankapay.net/en

https://www.icta.lk/projects/digitalizing-government/government-digital-payment-platform-govpay