Recently NPCI enabled ‘single block multiple debit’ feature for mandate mode of payments in UPI [Aug‘24]. Most familiar use case for it is in stock broking — where broking firm can block funds in customer’s account and charge only upon successful allocation of stocks.
This feature is specifically extended to be also used by online business selling goods and services [see NPCI circular] and not just securities brokers/dealers in financial markets. What businesses can make use of such a transaction feature?
Cc: @LokeshSambhwani
Use cases where security deposit is required to provide / use resources, might find this feature most useful.
Consider customers shopping online who want to opt for reusable packaging, can block necessary funds as security for the resources being borrowed.
Here’s an example: You want to buy cookies, but if it is packaged in plastic it costs ₹25, if it’s packed in tin box it costs ₹225. If only you could borrow the tin box for an additional ₹5 — by blocking ₹200 as security until it is returned. It would essentially cost you ₹30 to buy cookies while only renting the reusables.
Cc: @Saahas_Updates
Cc: @Shashwat_InfinityBox
Cc: Purav
Cc: @Dhwani
Q1: Will securing the reusables/pooled resources prevent damage/loss?
Q2: Make sustainable alternatives affordable and not ‘the expensive option’? (₹30 instead of ₹225 in above example)
Q3: Make more circular businesses possible? By not requiring either the business or the customer to bear entire cost of reusables involved (₹200 for ‘tin box’ in above example).
We are exploring a common ‘resource credit wallet’ that customers could use across e/q-commerce platforms. Which works on a new kind of credit for everyday commerce that is not based on primary credit history (where you borrow & return money), but instead on ‘secondary credit history’ (where you commit your money as security & don’t default).
Cc: Adding friends from reusables space — for greater visibility of this new UPI feature but also feedback on how it can be made more useful. @superprat @Sailee_Rane @Pai