BISP Card Distribution Information Flow between Stakeholders

Detail of Beneficiary Data being shared a) CNIC , Status (Active / Inactive), Distribution Site [If personalization] b) CNIC, ID, Beneficiary detail, KYC c) CNIC, Beneficiary Detail

Update back from Field through NADRA to BISP CNIC, Status (Verified / Unverified), Contact No

Concept Note on QR Code

1. What is QR Code
QR code is graphical representation of Information in a format which is technology readable; different information such as Beneficiary CNIC, member Identification Number address, ATM card data etc can be stored as Coded QR code. QR code is not readable through human eye; it can be read using Smart phones, Code reader devices; both are generally cheaper than POS (Point of Sale) machine.

2. Prior BISP Experience

BISP piloted a payment mechanism in 4 districts which was solely based on the QR code technology with additional Pin code security on top. BISP is supporting 0.18 million beneficiaries with sustenance cash grants of Rs 1000 each using the same technology. The payments made using this technology have been validated for actual delivery by third party (VTT a USAID contracted firm) and results shared in the Draft report suggests 98%+ delivery of issued amount. If statistics are correct the test phase implementation has been a phenomenal success considering the leakage in other payment distribution models (e.g. Post/money orders).

3. Cost Printing / Technology

There are three effort areas involved in incorporating QR codes.

3.1 Provisioning / Generating Provision of the QR code image cost is effectively none. BISP can provide encoding / decoding APIs or/QR images to be printed on Card [irrespective of Personalization decision]. If card is not being personalized the ID on the card can be printed as QR code, otherwise CNICs QR code as previously can be printed on the card. 3.2 Printing on the Card Generally It is black & white 1 square inch image (size depends on information quantity as well), No additional colors in printing are required. The process is as complicated OR simple as printing a picture on the card; in fact it is more economical since it is uni-color printing. 3.3 Payment System API Cost for Banks There shall be one time cost of integrating the QR code reading & integrating mechanism, the mechanism is already in place by UBL , same can easily be extended to other partners. However there may be slight adjustment based on the decision on personalization of cards. In our opinion there is ZERO / NEGLIGIBLE cost involved in integrating QR code to the Payment CARD.

4. Personalization / Non Personalization

Irrespective of personalization we can use QR codes, if the card is not personalized centrally; once the card is tagged with beneficiary at the time of distribution, the QR code will also get tagged to the beneficiary. Beneficiary will be identifiable by the same QR code for payments or any other identification for other initiatives.

5. Benefit for BISP

There are current and prospective benefits to BISP

i. Adding this technology will give the Distribution agents the flexibility to use additional tested method, hence more agents can come in the distribution network. For effective distribution & minimum leakage beneficiary should have more access points for cash withdrawal. Specifically for the mechanism which have proved to be huge success in pilot phase. ii. This technology has the potential to integrate with future technologies [e.g. Smartphone]. iii. Integration with currently available support network in 4 pilot phase districts iv. BISP can shift 60k non registered Beneficiaries of Smart Card Test phase districts into this payment mechanism. v. One important benefit for BISP is that the same card can be used with Other Programs e.g. Health Insurance, CCT and other initiatives [in all these cases data shall be stored at backend centrally and can be auto retrieved based on corresponding QR code information on the card], the process can be easily automated using the technology [ideally Cell phones which is most widely available network in the country]. vi. This technology has varied benefits for BISP even if BISP does not use the card for payment purpose.

6. Security Element with QR code

QR code is coupled with PIN code for security purpose. Usage of the card with QR code is same as with ATM or POS.

7. Recommendation
i. ii. iii. iv. v. vi. This is first mass scale ANY CARD distribution by BISP; the card should have maximum possible options. There is negligible cost effect for the card. The card functionality goes beyond Payment System to other programs & initiatives, It can also add significant value to Current payment system by increasing the distribution network. It can provide broader usability than that provided by ATMs and POS. The Code can be integrated irrespective of card personalization decision by BISP. We STRONGLY recommend that QR code should be integrated.

Case Management
Report on misappropriation by POS / kiosk code person

 Card Lost o Subsequent card shall be delivered by Banks themselves, without biometric verification, since it was done once. Only CNIC validation shall be sufficient. Funds transfer delay Complaint