JustPay powers first cashless sale in Sri Lanka


JustPay, a ground breaking initiative of LankaPay to convert the large number of cash based retail payments, went into full swing at the MAS Arena, Royal College on March 4. UPay, the very first JustPay powered Smart Phone app to go live, conducted a historic cashless sale in partnership with Cargills bank, for the very first time in Sri Lanka, with the participation of more than 75 smalltime merchants and a large number of enthusiastic Smart phone users.

This was a gigantic step forward in moving Sri Lanka towards a less cash society as the norm for such an event was to use cash as the payment mode especially when smalltime merchants are involved. Since a majority of the merchants in the country are small timers where the number of daily transactions at each outlet are low in value and limited in number, many thought it would not be practical at all to move them away from cash. The primary obstacle to reduce cash transactions was the commission (Merchant Discount Rate or MDR) charged by banks from merchants for use of credit/debit cards, which was hovering around 2-3% of the transaction value. Considering the low profit margin for such small merchants from each sale was around 5%, parting a significant portion from their profit has always been a challenge. LankaPay understood this roadblock from the onset and removed this barrier by lowering the MDR for JustPay, so that the merchants would not have any objections to parting with a smaller commission in return for increased sales. To facilitate same, all member banks of LankaPay real-time payment system have agreed to reduce the electronic fund transfer fees to a nominal value to facilitate retail payments via JustPay.

The massive opportunity created by this major shift in the current payment eco system has encouraged innovative FinTech players, such as UPay, to come forward with solutions that provides ultimate consumer experience. The need of finding merchants, making transactions in real-time and rating the merchants based on the user experience would be addressed by the innovative apps that uses JustPay payment mode. UPay provided an ultimate convenience and a consumer experience to their customers at this cashless sale, by providing a Smart Phone app that a user could simply scan a QR code of a merchant and JustPay at checkout. Most consumers who attended the cashless sale at the MAS arena was pleasantly surprised by the seamless mechanism UPay provided them to make a payment. These are the types of innovations that JustPay intends to bring to the market by providing a level playing field for such innovators to compete on the merits of their innovation. The ultimate winners of this journey are the General Public by enjoying ultimate convenience and the country as a whole when the usage of cash would gradually reduce over time.

animated gif
Processing Request
Please Wait...