India leads the Cashless Revolution: Are You Ready For It?
Have you considered how the recent changes with payments in our country will affect your life and your businesses? Financial services, in particular, have gone through a dramatic transformation.
Funding for financial technology startups grew nearly six times in the first five years of this decade as the industry received interest from various independent players, tech giants, telecom operators, and of course banks and other financial service providers.
We still rely heavily on cash, but digital payments are rapidly replacing cash. Prime Minister Sh Narendra Modi’s initiative to demonetize India came with large brickbats (long lines and more) but after the storm passed we realized we like convenience — even if convenience means reporting taxes. About time. How will the country progress if everyone evades tax payments? Far too much money changes hands without ever being noticed.
A report by Boston Consulting Group in association with Google mentions that digital payments will pass cash payments in 2023. By then, they will constitute at least 59% of all our consumer payments.
As per data from the Reserve Bank of India, the value of transactions using digital payments grew from ₹ 94 trillion to ₹ 150 trillion for the period from November 2016 to the end of March 2017. That’s a 30 percent growth in four months! Real-time gross settlements lead this growth, but Unified Payment Interface (UPI) transactions grew from less than a billion in November 2016 to almost 24 billion in March 2017. Just in the last month, the number of Point of Sales grew from 2.2 million to 2.52 million. On average the number of point of sales has been growing at a 12 percent rate per month since December 2016. If this trend continues, India could have 40 million point-of-sales by the first months of 2019.
An important reason for this fast transformation is the Digital India initiative. Reforms such as the abolishment of multi-factor authentication have sped up payment processes. The Unified Payment Interface, allows for instant fund transfers. The Aadhaar initiative aids identification, digital documentation and privacy protection laws. One of the most advanced initiatives as of yet is to provide rural India with the opportunity to get connected online. The National Optic Fiber Network will provide all communities in India with a broadband connection.
Internet penetration is expected to grow from 300 million to 650 million users by 2020. Smartphone penetration is expected to increase from 240 million to 520 million by 2020. Not bad at all!
As per the Boston Consulting Group report, 3 out of 4 merchants believe that digital payments will enhance their business due to their cost effectiveness and convenience.
Low or no investment solutions like ePaisa’s mobile POS will drive rapid adoption. By 2020 digital acceptance is expected to grow ten times, covering more than 10 million merchants.
With what may become one of the most sophisticated background infrastructures in the world, we will finally receive the customer experience we deserve.
What do you need to join the revolution? Just an app and a mobile card reader to pair with your smartphone or tablet. ePaisa’s mobile POS accepts all kinds of payments: cash, cheques, coupons (Sodexo), meal vouchers, cards, UPI, mobile wallets, and even Udhaar.
Speed up transactions, keep lines short, and ring up sales wherever they are – #GODIGITAL !