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Subspace Offline Payments: Now a Reality!

Subspace offline payments enable consumers to make digital payments without an internet connection. This is especially beneficial for people in network-scarce regions or during times when online payments encounter technical issues.

The Reserve Bank of India (RBI) has recently issued a framework enhancing transaction limits for small-value digital payments in offline mode. This allows users to make offline transactions up to ₹500 per transaction and an overall limit of ₹2000 until the balance in the account is replenished.

Subspace offline payments can be made using a mobile wallet app. The app would generate a QR code that the user can scan to make a payment. The merchant would then scan the QR code to receive the payment.

Subspace offline payments have the potential to play a significant role in boosting financial inclusion in India. By making digital payments more accessible and convenient, Subspace offline payments can help to bring more people into the formal financial system and improve their financial well-being.

Benefits of Subspace Offline Payments

Convenience: Subspace offline payments can be made without an internet connection, making them ideal for people in network-scarce regions or during times when online payments encounter technical issues.
Security: Subspace offline payments are highly secure, using cryptography to protect transactions.
Compliance: Subspace offline payments comply with all relevant regulations, including those of the RBI.
Financial inclusion: Subspace offline payments can help to bring more people into the formal financial system by making digital payments more accessible and convenient.

How Subspace Offline Payments Work

Subspace offline payments use a next-gen prepaid wallet that works with Subspace's acquiring stack to enable offline payments in a secure environment. The on-device prepaid wallet allows transaction initiation, and the acquiring stack helps process transactions once the merchant or user goes online.

The Subspace issuance prepaid wallet system is used to manage user-level wallets, accounts, balances, transactions, etc. For each backend wallet, an on-device wallet is created on the user application, which mirrors the backend issuance wallet. Crunchfish SDK is used for on-device wallet functionality. The on-device wallet is extremely secure, and the integrity of the wallet and transactions is constantly maintained.

Steps to Transact using Subspace Offline Payments

1. Install the wallet app and register via SIM binding flow

Download and install the wallet app on your device. 
Open the app and follow the on-screen instructions to register using the SIM binding flow. 
Provide the necessary details, including your mobile number and any other required information. 
After activation, you can start using your wallet to make payments.

2. Load money into the wallet

Load money into your wallet using the available payment options provided in the app without requiring an internet connection. 
Note that the maximum amount you can load is Rs. 2000, as per RBI's Offline Payments Guidelines.

3. Initiate a payment by generating a QR code

You have two options to initiate a payment : 1. Visit a partner merchant: Go to any partner merchant that supports offline payments. Request a QR code from the merchant for your payment transaction.  2. Pay fellow users: If the other person also has an offline payment app, you can request a QR code through your respective applications.
Once you have requested a QR code, the receiver or beneficiary will generate it on their app.
The beneficiary enters the desired amount to be accepted, following the RBI's Offline Payments Standards.
The QR code is now ready for scanning.

4. Complete the payment

Open your wallet app and scan the generated QR code using your phone's camera. 
Enter your wallet PIN to authorize and complete the transaction. The payment is now successfully made, and a payment receipt/proof QR is generated on your app.

5. Payment receipt for merchant

The payment flow is completed when the merchant scans the payment receipt on their app. 
Both the user and the merchant now have proof of the offline payment.

6. Synchronization and payouts

When the user or merchant goes online (which could be once a day), the app synchronizes with the issuing and acquiring systems. 
Merchants will receive payouts for the accepted and synced transactions.
Both parties can view their transaction history and balances.Benefits of Subspace Offline Payments for Banks, Merchants, and Consumers

Benefits of Subspace Offline Payments for Banks, Merchants, and Consumers

Subspace is a peer-to-peer (P2P) offline digital payment solution that allows users to send and receive money without the need for an internet connection. It is based on blockchain technology and uses a secure digital wallet to store digital funds. Subspace is designed to be convenient, secure, and flexible, and it can be used to make payments to merchants and individuals alike.

Banks

Reduce congestion on the core banking system due to higher volumes of UPI payments.
Tap into the rural economy and provide credit.
Improve engagement with both consumers and merchants.
Enhance digital payments in small and remote areas.

Merchants

Increase payment acceptance.
Get instant payment confirmation.
Reduce the chance of transaction failure.
Simplify reconciliation and accountability.
Increase security via two-way payment verification even when offline.

Consumers

Transact in low or no-network zones/areas.
Minimize the risk of payment failures and double deductions.
Access dedicated dispute resolution.
Use an app for convenient access.

Here are some of the advantages of using Subspace for offline P2P & P2M payments:

Convenience: Subspace payments can be made quickly and easily, even without an internet connection.
Security: Subspace payments are more secure than cash payments, as they are protected by cryptography.
Flexibility: Subspace payments can be made to merchants and individuals alike, using a variety of methods, including QR codes and NFC tags.
Affordability: Subspace payments are very affordable, with low fees and no transaction limits.

Subspace is a promising new solution for offline P2P & P2M payments. It offers a number of advantages over traditional payment methods, such as cash and credit cards, and it is well-positioned to play a role in promoting hassle-free financial inclusion in India.

Conclusion

Subspace offline payments are a significant step towards financial inclusion in India. By making digital payments more accessible and convenient, Subspace offline payments can help to improve the lives of millions of people.

Subspace Offline Payments: A New Era of Financial Inclusion in India