State Bank of India to introduce digital payment system with underlying proof of concept tech

Hitachi Payments a wholly-owned subsidiary based in India of Hitachi, and government-owned State Bank of India (SBI), have joined forces to introduce a nation-wide digital payment system.

This will include Hitachi providing SBI access to its Internet of Things (IoT) Lumada, which uses proof of concept. The platform Lumada was also used as the base platform for a major blockchain proof-of-concept (PoC) for supply chain management undertaken with Japan's Mizuho Financial Group last year, reported news portal CoinTelegraph.

For those wondering if Hitachi has prior experience of working with financial institutions, yes it does. In the past the company has empowered financial institutions, with an array of technology-led cash and digital payment solutions such as ATM managed services and POS processing services. At the moment, it has over 55,000 ATMs and 850,000 POS devices (including Mobile POS) under management in India. Hitachi Payments has been providing deployment, technology and management services for the card and digital acceptance payment network of SBI since 2011, according to a press release, put forth by Hitachi.

Commenting on this, chairman of SBI, Rajnish Kumar said, "At 2,500 PoS per million people, the penetration of payment acceptance infrastructure is still low. With this JV, we aim to grow the payment landscape by providing a frictionless modern digital payment platform to our customers. In Hitachi Payments, we see a long-term business and technology partner that has the ability, capability and willingness to develop the broad vision of SBI which is tied into the success of the digital payment imperatives of the country. SBI also believes that the future of the payment services lies in the capability of the JV to develop new digital acquiring strategies for the benefit of its consumers."

Earlier this year, SBI was in the news when reports emerged that the bank in association with over 30 banks would develop a blockchain-based exchange that would assist the public lender in data-driven price discovery.

Although, bankchain alliance has not been in the news for a while, Sudin Baraokar, Head Innovation, SBI, at the time had stated, "The project will go live in the next 3-4 months. Although I cannot mention the names of the banks involved, it is basically a part of the Bankchain Alliance. The project is an extension of the blockchain-enabled project Bankchain."

Re-disseminated by The Asian Banker from crypto-news.in

 

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