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The objective of this 3 part series is to examine in brief the barriers and motivators for the key players in India’s (the author believes it has elements that can stand true for any economy that intends to go cashless) Journey towards a cashless society. In
part 1 and 2 can be read at Finextra Blogs.
Business (Issuers/Acquirers): The estimates in terms of number of retail outlets vary from 40- 90 million. However large number of them have very little capability and incentive to acquire POS terminals. The current merchant acquirer in
market find it to be a loss making business which needs cross subsidization in one or the other form.
G2P Electronic Disbursals
Providing poor G2P recipients with financial services strengthens the development impact of G2P payments. A growing body of evidence shows that financial services enable poor people to better withstand shocks, build assets, and link into the wider economy
as fuller economic citizens. Digital enablement of G2P is seen as one of the biggest contributor in reducing the cost of cash in economy.
Motivators – Consumer/BC
Motivators – Govt
As per Mckinsey report (The benefits of e-payments to Indian society- 2010) in 2008-09, payments between the Indian government and individual households amounted to INR 13.3 Lakh cr. An electronic platform to and from Individual households
could save an estimated 1 lakh cr a year.
Of course, it can be argued what type of solutions will work best towards taking India to Cash less but active participation of
is surely a great start towards India’s Journey to Cashless Society.
Vodafone m-pesa Ltd
22 Sep 2015
This post is from a series of posts in the group:
Payments systems visions, strategies, trends, pilots, forecasting, and planning for the short-, medium-, and far-term.