In order to onboard the under privileged and underserved section of the society to digital payments, non-mobile, swift and easy-to-use innovative solutions for converting small value cash payments of amount less than ₹100 to digital mode, may be explored. This would enhance the reach of digital payments and enable a greater inclusion of the underserved into the mainstream.

Context based payments require no direct interaction between the customer and the merchant. It is mostly contingent on completion of an underlying activity and may include automatic payment at grocery stores once a customer exits the store. Different use cases in the retail segment can be thought of to enable a seamless payment experience which may include an application. The solutions may also focus on consent mechanism, fraud prevention and security features besides enhancing user experience.

Presently, most of the digital payments are authenticated by a Personal Identification Number(PIN)/password/CVV followed by a One-Time Password (OTP) which is received by the remitter over his mobile phone. While the SMS through which the OTP is received is not encrypted, the instances of digital payment frauds where the users are tricked into sharing the OTP have also been observed. As such, an alternate smart secure authentication mechanism may result in more secure digital transactions.