encrypting PINs and transactions;

card embossing;

customizing transaction slips;

multi-currency support;

POS management; and

reconciliation of various transactions along with the issuing and acquiring transactions.

We have also entered into an arrangement with a public sector bank to provide card-less cash withdrawal from
ATMs using QR code.

We also provide electronic payment solutions, where we integrate a variety of payment channels, including
internet payment gateways and several mobile payment systems, to route, switch and process electronic
transactions. Our transaction switch acts as the backbone of our electronic payment solutions offering, which is
also offered through our wholly-owned subsidiary, ITSL.

In 2016, we extended our relationship with ACI to offer our customers a variety of payment solutions including
BASE 24-eps, UPF and fraud management as a service on pay per-transaction basis, significantly reducing the
complexities associated with adopting these solutions especially for smaller banks and financial institutions.

In both transaction switching services and digital payment solutions, our payment terms for our services are
either on a fixed monthly fee basis or on a per transaction basis.

Merchant Solutions

To focus our efforts on digital payments and penetrating the market, we decided to commence our operations in
this area through our subsidiary ITSL in 2013. Our merchant services include device-based and device-less
payment solutions, prepaid and loyalty programs, Cash@POS, payment gateway and remote payment solutions,
loans against card receivables and other value added services.

e@ Payment Acceptance: We provide both device-based and device-less payment acceptance options. Our
solutions span across numerous industries and cater to diverse merchant needs. Enabled with a
seamless payment technology, we provide acceptance solutions for all forms of digital payments
including card-based (debit and credit cards), RFID, Bharat QR and UPI online acceptance and
biometric-based (Aadhar Pay). Our payment acceptance contracts have terms ranging from three to five
years, and we are paid an initial setup fee, and either a monthly fixed fee or as a percentage of total
GTV, or a combination of both.

« IPS for OMC retail outlets with opportunity to monetise the POS machines: We have developed an
integrated payments proposition for petroleum retail outlets in which the POS machine is connected
with the existing fuel automation, to provide control over transactions on the POS machine. We are
paid a percentage of GTV and monthly rental under these arrangements.

The table below shows our financial and operational metrics for our merchant services:

 

 

 

 

 

 

 

 

 

 

 

Five months Financial Years
ended 2021 2020 2019
August 31,

2021
Number of Terminals 221,066 207,335, 171,809 111,773
Number of Merchants 180,993 172,181 141,643, 93,729
Number of Transactions (in millions) 72.85 121.27 85.67 195.19
Total Gross Transaction Value (GTV) (in & millions) 123,498 205,718 142,750 81,962

 

Prepaid and Loyalty Programs: We have introduced technology to assist SMEs in launching their own
loyalty programs. Ongo Prepaid and Rewards programs offer flexibility to the merchant for defining
programs and also provide customized solutions enhancing their brand proposition. We also provide
customized mobile wallets and prepaid programs for large organisations. As part of these services, we
are typically paid a percentage of total loading value.

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