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Mobile wallet use at petrol pumps surges amid safety concerns

The use of wallets, powered by mobile phones, could be a major cause for concern


If you are using a mobile wallet to pay at petroleum retail outlets you may be helping the government in moving to a less-cash or digital commerce-based economy but this comes at the cost of safety. Mobile wallet applications are available on cellphones, which are prohibited from being used at petrol pumps as these might cause sparks, leading to major mishaps. The use of wallets, therefore, is a major cause of concern for many experts. 

While mobile wallets as well as oil marketing companies are claiming that they follow all safety norms and no mishap has happened as of now, experts believe that should not be the reason to allow cellphones at petrol pumps. “Going cashless may be advantageous for the economy, but if you are using a mobile phone within a petrol pump’s premises, it may cause a major catastrophe,” said a senior executive from a public sector undertaking.

Safety guidelines on the website of Hindustan Petroleum Corporation quote Petroleum and Explosives Safety Organisation (PESO) rules and state in capital letters, “SWITCH OFF Mobile Phones within Petrol Pump premises". 

When asked about this, a spokesperson of Indian Oil Corporation said, “Now, we have about 12,000 petrol pumps using the mobile wallet facility. But we have given instructions that payments should not be made in the pump island (6 metres within the fuel dispensing unit).” He said the company believed that all the retail outlets were following this.    

Mobile wallets such as Paytm and Freecharge, which are accepted at a majority of the petrol pumps and have tie-ups with all the major oil marketing players, claim that a sizeable amount of time is being spent at filling stations to sensitise staff about PESO rules and the exact way of accepting payments.

“We ensure every member of the field staff at fuel stations accepting Paytm is trained in transacting either at a safe distance as specified by PESO or at the sales office,” the Paytm spokesperson said. Routinely, he added, Paytm ground training staff conducted spot checks at petrol pumps.

One of Paytm’s biggest competitors Freecharge, on the other hand, has created an in-app feature that helps it avoid the use of mobile data or cellular connection to make payments. 

“The Freecharge app also works without any Internet or telecom access. The on-the-go PIN, which is available in the app itself, makes it safe and convenient for use at places where phone usage is restricted or network is not available. The PIN is generated in the app itself and renews every 180 seconds and thus multiple transactions, including at fuel pumps, can be done in a safe manner,” said a Freecharge spokesperson. “A user can put the phone on flight mode, which cuts data as well as telecom connectivity, and use the mobile phone safely,” the spokesperson added.

Petroleum Minister Dharmendra Pradhan is himself driving cashless transactions in petroleum sales. From December 2, the share of cashless transactions through petrol pumps has increased to 44% from 20% before demonetisation. However, between November 8 and December 1, the use of cashless transactions dropped to 13-15% because petrol pumps were accepting old Rs 500 and Rs 1,000 notes. From December 2, the government stopped petrol pumps from accepting Rs 1,000 notes and from Saturday old Rs 500 notes will not be accepted.

Oil marketing companies--Indian Oil Corporation (IOC), HPCL and Bharat Petroleum Corporation Ltd (BPCL)--are planning to extend the mobile wallet facility to 40,000 retail outlets by the end of December. Out of the country’s 56,190 fuel retail outlets, public sector companies have about 52,604.

Before November 8, the number of retail outlets using the mobile wallet facility was around 1,000, which has zoomed to 12,000 now.  

“We have been asked to conduct these mobile transactions outside the 6 meter range. All retailers have to be careful about these payments,” said Ajay Bansal, chief of the All India Petroleum Dealers’ Association (AIPDA). However, there has been no major increase in the sales of petroleum products in November. According to industry estimates, sales of petrol rose by 10% after demonetisation and diesel sales increased by 5%, compared to the same period last year.





Source: BS

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