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New Delhi, Prime Minister Narendra Modi on Tuesday expressed hope that digital transactions will soon surpass cash with Unified Payments Interface (UPI) increasingly becoming the most preferred payment mechanism in the country. Modi after the launch of the cross-border connectivity between the UPI and PayNow of Singapore said about 74 billion transactions amounting to more than Rs 126 trillion, which is approximately 2 trillion Singapore dollar, was done through UPI in 2022. "Many experts are estimating that very soon India's <keyword id="16596261" type="General" weightage="20" keywordseo="digital-wallet-transactions" source="Orion">digital wallet transactions</keyword> are going to overtake cash transactions," he said. A large number of transactions via UPI demonstrate that this indigenously designed payment system is very secure, he said. Modi along with his Singaporean counterpart Lee Hsien Loong witnessed the launch of cross-border connectivity between the UPI and PayNow of Singapore via video conferencing. The facility was launched through token transactions by Reserve Bank of India Governor Shaktikanta Das and Managing Director of Monetary Authority of Singapore Ravi Menon using the UPI-PayNow linkage. Stressing that the linkage of UPI and PayNow is a new milestone in India-Singapore relations, Modi said, this will help people of both the countries to do cross border transactions through mobile phone in an affordable manner. Singapore is the first country with which cross-border Person-to-Person (P2P) payment facility has been launched, he said, adding, this will help the Indian diaspora in Singapore, especially migrant workers/students and bring the benefits of digitalisation and fintech to the common man through instantaneous and low-cost transfer of money from Singapore to India and vice-versa. Pointing out that the focus of the government is to promote innovation and modernisation, Modi said the Digital India programme of the government has enhanced 'Ease of Living' and 'Ease of Doing Business' and digital connectivity and has pushed financial inclusion. The Digital India programme has brought in significant reforms in governance and public service delivery. The linkage will enable users of the two fast payment systems in either country to make convenient, safe, instant, and cost-effective cross-border fund transfers using their respective mobile apps. Funds held in bank accounts or e-wallets can be transferred to or from India using just the UPI-id, mobile number, or Virtual Payment Address (VPA), the Reserve Bank of India (RBI) said in a statement. To begin with, the statement said State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate both inward and outward remittances, while Axis Bank and DBS India will facilitate inward remittances. For Singapore users, the service will be made available through DBS-Singapore and Liquid Group (a non-bank financial institution). More banks will be included in the linkage over time. Customers of the above participating banks can undertake cross-border remittances to Singapore using the bank's mobile banking app or internet banking. To begin with, an Indian user can remit up to Rs 60,000 in a day (equivalent to around SGD 1,000). At the time of making the transaction, the system shall dynamically calculate and display the amount in both currencies for the convenience of the user, it said. The UPI-PayNow linkage is the product of extensive collaboration between the RBI, Monetary Authority of Singapore (MAS), and Payment System Operators of both countries viz. NPCI International Payments Limited (NIPL) and Banking Computer Services Pte Ltd (BCS), and participating banks / non-bank financial institutions. This interlinkage aligns with the G20's financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments and will be a significant milestone in the development of infrastructure for cross-border payments between India and Singapore, the statement said. India has emerged as one of the fastest-growing ecosystems for fintech innovation. A key emphasis of the Prime Minister has been on ensuring that the benefits of UPI are not limited to India only but extend to other countries as well. The virtual launch was preceded by a phone call between the two Prime Ministers, wherein discussions were held on areas of mutual interest. Prime Minister Modi thanked Prime Minister Lee for his partnership in taking the India-Singapore relationship forward and looked forward to working with him under India's G20 Presidency.

Digital transactions to soon exceed cash in India: PM Modi

Gokul Rajaram is Product Engineering Lead at Square. He was most recently the Product Director of Ads at Facebook, and the Product Management Director for Google AdSense. He recently joined LivSpace as its Special Advisor. Business Insider India caught up with him just when he was beginning his day in San Francisco. 
 
1) What led you to join Livspace? 
I joined Livspace because of the founding team. The team compliments each other very well, right from Anuj the founder and CEO to Ramakant and Shagufta of Space Matrix. Livspace helps one design home better; the very concept excited me. 
 
2) What’re the unique internet trends you see in India? 
Food, shelter, clothing and transportation are some of the basic necessities for people. The Internet is helping solve problems in all aspects of human life. Indian companies understand the specific needs of the <a href="http://www.businessinsider.in/searchresult.cms?query=consumers">consumers</a> in India and are designing products accordingly. 
 
US based <a href="http://www.businessinsider.in/searchresult.cms?query=e-commerce">e-commerce</a> giants like <a href="http://www.businessinsider.in/searchresult.cms?query=Amazon">Amazon</a> are competing with Indian companies because they are many untapped opportunities here in India with the growth of Internet. 
 
3) What are the current challenges for Indian e-commerce companies? 
One is definitely logistics - the ability to transport goods from the warehouse to the drop location. One has to ensure last mile logistics. The second is payment - there is a lot of <a href="http://www.businessinsider.in/searchresult.cms?query=cash+on+delivery">cash on delivery</a> (COD) in India as compared to other payment channels like debit and credit cards or the use of wallets. The third would be how to encourage the merchants, i.e. the sellers to sell more products online. 
 
Demographics and the usage of mobile define the gap among e-commerce sites when it comes to fashion and other product verticals. 
 
4) What is India’s e-commerce population like? 
A large section of the online population is in the age group of 18 to 25. They are also the largest users of <a href="http://www.businessinsider.in/searchresult.cms?query=smartphones">smartphones</a>. These people increase the mobile engagement of buying products online. In years to come every household will start using mobile to engage in online shopping. 
 
5) What are the current product innovations you’re planning at Square? 
We at Square are looking at consumer friendly solutions in the payments sector. We are currently building products which will enable easier payments methods through debit and credit cards. 
 
Image credit: Indiatimes

Gokul
Rajaram: Every household will start using mobile

India has witnessed the fastest jump in alternative payment share for <keyword id="21422684" type="General" weightage="100" keywordseo="e-commerce-payments" source="keywords">e-commerce payments</keyword> in the <keyword id="20122305" type="General" weightage="20" keywordseo="Asia-Pacific-region" source="keywords">Asia-pacific region</keyword> from 20.4% in 2018 to 58.1% in 2023 as per a report by GlobalData, a data and analytics company. Options for payment other than traditional cash include <keyword id="19900911" type="General" weightage="20" keywordseo="UPI" source="keywords">UPI</keyword>, <keyword id="6354770" type="General" weightage="20" keywordseo="debit-cards" source="Orion">debit cards</keyword> and <keyword id="6387037" type="General" weightage="20" keywordseo="credit-cards" source="Orion">credit cards</keyword> among others. "This significant uptake of alternative payment solutions can be attributed to the widespread usage of <keyword id="21223853" type="General" weightage="20" keywordseo="mobile-wallets" source="keywords">mobile wallets</keyword>, largely driven by UPI, which facilitates mobile payments in real-time simply by scanning <keyword id="19993724" type="General" weightage="20" keywordseo="QR-codes" source="keywords">QR codes</keyword>," GlobalData report elaborated. The report highlights that in the Asia-Pacific (APAC) region, the payment solutions such as mobile and digital wallets have displaced traditional payment methods like cash and bank transfers for e-commerce payments. The report states that such alternative payments are already immensely popular in countries like <keyword id="1334" type="General" weightage="20" keywordseo="china" source="Orion">China</keyword> and India and are also gaining traction in other APAC markets as well. However, China led the way in 2023, with alternative payments accounting for nearly two-thirds of the total e-commerce payments value in 2023 that took place in the entire Asia Pacific region. However, India is also not far behind, with a significant surge in alternative payment methods since 2018. The e-commerce analytics by the company revealed that even traditionally cash-intensive countries in APAC such as the Philippines, Malaysia, and Indonesia, are witnessing a similar trend. "While most Asian markets are traditionally cash-dominated, the adoption of alternative payment methods for both online and in-store payments is growing across many markets in the region, even outpacing the West. This trend is driven by the rising smartphone and internet accessibility, increasing convenience of electronic payments, and the proliferation of mobile and QR code-based payment solutions" said Shiv Gupta, Senior Banking and Payments Analyst at GlobalData. The report also highlights that within the Asia-Pacific region, China and India have a higher adoption rate of alternative payment methods as compared to their peers. According to the company's 2023 Financial Services Consumer Survey, alternative payment solutions account for more than 65% of the e-commerce transaction value in China, the largest e-commerce market globally. It represents a significant increase from 53.4% in 2018. Other Asian markets like Indonesia, Hong Kong, Singapore, and the Philippines are also seeing higher adoption of alternative payment solutions. "Alternative payment solutions accounts for lion share in e-commerce markets across many APAC countries, supported by rising internet and smartphone penetration, and growing acceptance of digital payments by merchants. With the convenience, speed, and security they offer, coupled with high expected growth in the overall e-commerce market in the region, these payment tools are anticipated to further gain traction and disrupt the consumer payment space in the region" said Gupta.

India's non-cash payments on e-commerce platforms surge to 58.1% in 2023

If there’s anybody who is having a ball right now, it’s a couple of <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword> operating in the digital payment space in India. 
 
It’s because the government is discouraging cash payments. It has recently removed the surcharge on card/ electronic payments, which means it should not cost more when you are paying digitally. Also, it will soon become a must for people to make online payments in transactions above a certain threshold. 
 
India is amongst the most cash intensive cash economies, and the government realizes there needs to be policy changes which can encourage people to make electronic payments. 
 
The Industry is brimming with happiness after the good news. “This is a masterstroke by the government following last year’s RBI decision to roll put payment banks,” says digital payment portal Paytm’s founder Vijay Shekhar Sharma. 
 
“The current regime in which companies levied charges on digital payments was lopsided – and in favour of cash,” he adds. 
 Govind Rajan, the COO of <keyword id="6377963" type="UNKNOWN" weightage="20" keywordseo="Freecharge">Freecharge</keyword>, seems equally excited. He says, “this decision to bring digital payments at par with cash is a watershed moment in the creation of a truly digital India.” 
 “In combination with <keyword id="144117" type="ORGANIZATION" weightage="20" keywordseo="AADHAAR">Aadhaar</keyword> and Jan Dhan Yojana, this move constitutes the most wide ranging and ambitious program for the digital transformation of the country,” he says. 
 Presently, India's cash to <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> ratio is 12%, which is 3-4 times that of comparable economies like Brazil and South Africa. The cost of managing this high cash dependence is over Rs 20,000 crore in the formal banking system and even more in the entire economy. 
 
“With this strong signal, we are on our way to wean the country off its expensive and inefficient addiction to cash. Going digital will not only save the country crores of rupees, it will also provide consumers and merchants a more secure and frictionless way of transacting,” says Rajan. 
 
“We are confident that the government’s continued support for the digitization of payments will further fuel growth and innovation in the sector, with significant long term socio-economic benefits to the Indian economy,” he adds.

PayTM
and Freecharge are rejoicing 2 days ahead of the budget. Here’s why

Meta-owned <keyword id="790242" type="General" weightage="20" keywordseo="whatsapp" source="Orion">WhatsApp</keyword> has confirmed that it is running a cash-back campaign in <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> to drive more users on its digital payments service. The company is giving away Rs 11 cashback up to three times by sending money to three different contacts via unified payments interface (<keyword id="6358921" type="General" weightage="80" keywordseo="upi" source="Orion">UPI</keyword>) on WhatsApp. "We are running a campaign offering cashback incentives in a phased manner to our users as a way to unlock the potential of payments on WhatsApp," a company spokesperson told IANS. "We'll continue to drive awareness of payments on WhatsApp as part of our broader efforts to bring the next 500 million Indians onto the digital payments ecosystem," the spokesperson added. If you become eligible for the promotion, you will see a banner within the app, or a gift icon when you're sending money to an eligible receiver, according to WhatsApp. "Once selected, you can send money to any of your registered WhatsApp contacts and receive Rs 11 cashback per successful transaction," the company informed. Google and Paytm have also offered cask-back to users to drive more engagement and retention growth on their respective platforms. On its support page, WhatsApp said that it will not offer cash-back for QR code payments, payments made on collect requests or made by entering the UPI ID of recipient, as well as payments on third-party online apps using WhatsApp. Earlier this month, the National Payments Corporation of India (NPCI) approved an additional 60 million users for UPI for WhatsApp - taking its cap to 100 million for Payments. "We believe there is an opportunity for UPI to have an even greater impact for the country -- especially in rural regions where digital and financial inclusion can significantly improve peoples' lives," Manesh Mahatme, Director-Payments, WhatsApp India, had told IANS. In November last year, the NPCI approved increasing the user cap for WhatsApp's payment service from the current 20 million to 40 million users. The NPCI has been giving approval to WhatsApp in a phased manner so that the competition in the digital payment space in the country is not stifled. WhatsApp kicked off its ambitious peer-to-peer (P2P) digital payments pilot project in India in 2018 with nearly 10 lakh users. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/ola-may-be-rushing-into-electric-cars-when-scooters-continue-to-underperform/articleshow/91141264.cms">Is Ola hurrying into its electric car dream?</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/adani-enterprises-sets-up-a-wholly-owned-media-arm/articleshow/91128727.cms"></a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/enterprise/news/google-expected-to-announce-the-pixel-6a-pixel-watch-and-android-13-in-i/o-2022/articleshow/91141500.cms">Google I/O 2022 – Pixel 6a, Pixel Watch, Android 13 and everything we expect to see</a>

Meta-owned WhatsApp runs cash-back campaign for making digital payments in India

New Delhi, Feb 26 () Moody's Investors Service said on Wednesday said Bharti Airtel has the financial capacity to withstand a payout of USD 5 billion in statutory dues. The Supreme Court earlier this month directed telecom firms to comply with its October 24, 2019 judgment upholding the Department of Telecommunication's (DoT) definition of adjusted gross revenues (AGR). Bharti recorded a Rs 35,300 crore (USD 5 billion) liability for past-due AGR fees associated with this litigation, but is still completing its self-assessment to determine the final amount, Moody's said. It said a Rs 35,300 crore cash payment will not cause a significant deterioration in the credit quality of Bharti Airtel while in the alternate scenario of a smaller cash payment of Rs 25,200 crore reflecting the principal and interest amount only, would position the company more comfortably within its current rating. Full payment is to be made by March 17. "Recent capital-raising activities provide additional liquidity to fund the AGR payment," it said. The AGR payment is a cash obligation of the Indian operations. As on December 31, 2019, the firm had consolidated cash and short term investments of USD 4.2 billion, with around USD 2.3 billion held at the Indian operations. "Following recent capital-raising, we estimated (Bharti's) cash is over USD 5.0 billion, which can be used to fund the final AGR payment," it said. Moody's further said that fundamentals in the Indian telco industry are improving, but uncertainty around the sustainability of the improvement and future cash requirements (including 4G/5G spectrum auction) remains. Moody's said India accounts for around 75 per cent of Bharti Airtel's debt and 60 per cent of EBITDA. "Debt levels and cash costs are high for this segment and need to be serviced from India's own organic cash flow," it said. "Cash and EBITDA generated at less than wholly-owned subsidiaries is not directly available to service debt at India. As a result, a significant expansion of India's cash flow is required to achieve meaningful debt reduction on a consolidated basis," it added. ANZ DRR

Bharti Airtel has financial capacity to withstand USD 5 bn payout in statutory dues: Moody's

The payment industry in India has evolved dramatically through the past couple of years. Driving this change has been the interface between technologies, policy and user driven product development. Disruption has been at the core of this change. India’s growth story in <a href="http://www.businessinsider.in/searchresult.cms?query=payments+technology+&amp;sortorder=effectivedate">payments technology </a>has been further catalyzed by disruptive offerings pioneered to engage an ever evolving consumer demographic. 
 
Set to be the youngest country in the world by 2020, India is home to a majority of consumers who are willing to take the leap into <a href="http://www.businessinsider.in/searchresult.cms?query=digital+payments.+&amp;sortorder=effectivedate">digital payments. </a>This churn has led to a massive transformation from traditional currency to non-cash instruments paving way to digital payments. A key accelerator of this transformation is the penetration of smartphones. 
 
The opportunity for India really lies in the fact that it is the second largest active smartphone users market in the world, despite low penetration rates. The adoption of smartphones is estimated to grow to 520 million by 20201. An added impetus is the rapidly expanding 3G and <a href="http://www.businessinsider.in/searchresult.cms?query=4G+internet+network+&amp;sortorder=effectivedate">4G internet network </a>in to the hinterland. 
 
The government has initiated the process of making digitization an intrinsic part of the India growth story. Under the ‘<a href="http://www.businessinsider.in/searchresult.cms?query=Digital+India%E2%80%99+initiative&amp;sortorder=effectivedate">Digital India’ initiative</a>, 90 percent of mobile devices in the country are expected to be internet-enabled by 2017. The change has started to reflect in urban India. Digital transactions are said to have shown a growth of 50 percent Y-o-Y, followed by ATM transactions growing at 15 percent and branch transactions at 7 percent growth. While urban India naturally adapts itself to newer technologies, development of the internet infrastructure will drive rural India to follow a similar pattern. 
 
Traditionally, an empty pocket with no cash has been associated with a lack of financial security. However, technology continues to challenge tradition. Economies across the world have gradually realized that cash comes at a cost of printing, managing and moving it, besides being a key driver of a financial system that is unaccounted for. Alarmingly, India’s cash-to-gross domestic product proportion at 12 percent is higher than many other economies. There is an urgent need to acknowledge that the primary competition for any payment technology in India comes from cash and not from other peers and contemporaries. 
 There has not been a better time before in the nation for payments, especially with the regulatory bodies cognizant of the need to improve the payment system network in India. RBI’s breakthrough Vision-2018 document focuses on responsive regulation, robust infrastructure, effective supervision and customer-centricity, thus acting as an enabler for the payment transformation. The Unified Payment Interface (<keyword id="6358921" type="COMPANY" weightage="20" keywordseo="UPI">UPI</keyword>) has gone live and so have the incentives for digital transactions, tax deductions for cash transactions exceeding 2 lakh rupees and real time payment transfer using <keyword id="155319" type="COMPANY" weightage="20" keywordseo="Aadhar">Aadhar</keyword> enabled payment systems. 
 A key characteristic of the payment industry has been its ability to constantly innovate. The increasing adoption of technologies like Near Field Communication (<keyword id="6409450" type="ORGANIZATION" weightage="20" keywordseo="NFC">NFC</keyword>) enabled smartphones that allow real-time, one-touch payments, cloud-based PoS, peer-to-peer transfers, virtual currencies like bitcoins enabling higher transaction speed and efficiency are creating a shift in the mindscape of consumers, proving a lucrative model for all players in the system. 
 
What next? 
 
In a bid to enhance customer acquisition, wallet companies offer high-volume discounts and offers, thereby escalating customer expectations. Although the ecosystem is currently perceived to be in favour of customers, the discounting and cash–back led model might not be as sustainable as it is envisioned to be. A sustainable value proposition that any payments technology provider can offer the consumer should essentially be in the form of covering risk. 
 
There is an urgent need for financial technologies to back their core competencies and enable a secure and risk-free environment to create a loyal customer base. Most payment interfaces currently are responsible for processing payments. The next level of evolution will be driven by ensuring the safety of buyers and sellers through various systems that protect their interests beyond just the transaction. 
 
Enhancing user experience 
 
Risk mitigation mechanisms in India currently also rely on the consumer to ensure the safety of transactions. With a considerable number of purchases being made on the mobile phone, customer authentication techniques require them to switch between screens. Most instances of cart abandonment take place at this cumbersome stage of switching between two screens. This gap is currently the greatest opportunity for payment companies. To leverage it, companies would do well to redefine their operational models that stand for strong risk management capabilities in the backend. And in the process, ensure security of the customer’s money while facilitating a flawless checkout experience. 
 
In a nutshell 
 
India is slowly transcending from using technology to living it. The demographic dividend that India offers is immense – what makes this phase a winning spree is the happy coincidence of the inflexion points of the payment industry and the country’s young populace. While it may be a matter of time before digital payments landscape is more democratized than it is, the rate at which consumers are adopting the concept is encouraging. It is now over to us to make the game better than it was yesterday. 
 
(This article is authored by Anupam Pahuja, Managing Director and Country Manager, PayPal India)

Digital payments: The inflexion point and the curve ahead

Among the most ambitious projects that have enjoyed great attention by Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>, national mission for financial inclusion tops the list. 
 
The report relating to this project prepared by USAID -- titled ‘Beyond Cash’- was released recently highlights the current behaviors and perceptions of digital payments in low-income communities in India, and suggests ideas on how policy makers can accelerate the adoption of digital payments in the country. The study was conducted by strategic advisory firm Dalberg in six locations across four states. 
 Indicating the potential of inclusive digital economy, the report carried most intricate data pertaining to the avenues that <keyword id="1929810" type="UNKNOWN" weightage="20" keywordseo="Digital-India">digital India</keyword> can take to make the project a huge success. 
 
The data indicates that across India 97 percent of retail transactions are conducted in cash or cheque. Surprisingly, only 29% of bank accounts in India have been used in the last three months, only 6 percent of merchants accept digital payments, and just over 10 percent of consumers have used a debit card for payments in the last year. 
 
Schemes such as Pradhan Mantri Jan-Dhan Yojana, supported by the Aadhaar; India has already made some important strides into the area. Add to this, one billion mobile phone connections and you will see universal financial inclusion taking stronghold in the country. However, the use of digital payments in the country remains limited and this needs to be addressed. 
 Digital payments can help consumers and merchants spend their money more safely and securely, save and build credit profiles for lending opportunities unavailable in the informal banking sector, and participate in a growing online economy. According to the <keyword id="6354424" type="ORGANIZATION" weightage="20" keywordseo="World-Bank">World Bank</keyword>, India could save approximately one percent of its GDP annually by digitizing cash-based subsidies alone. 
 
The report Beyond Cash suggests a few ideas to drive greater consumer and merchant adoption and use of digital payments. These ideas include: 
 
• Create opportunities for consumers to make digital contributions to micro-savings products. 
• Incentivize current users to deepen use and bring other consumers onboard. 
• Enable merchants to try digital payments at low or no cost. 
• Digitize retailer-to-supplier payments. 
 
 
 
 
 
 
 
Matthew Homer, a Senior Policy Advisor on Digital Finance at the United States Agency of International Development (USAID), lays open the potential, the challenges, solutions and way ahead for universal inclusive digital economy for India. 
 
BI: What are the solutions that India can focus on - both short term and long term (considering the majority low income demography and poverty)? Essentially how would you rate government's efforts and what are the necessary suggestions? 
 
Matthew: India is making tremendous progress with regard to financial inclusion. Aadhaar has created an enabling environment in which PMJDY and digital direct benefit transfers (DBTs) can take hold. These are important foundational elements of India’s journey to widespread and meaningful financial inclusion. Another critical element on this journey is to ensure that all Indians have the opportunity to actively participate in India’s growing digital economy. Very few merchants in India currently accept digital forms of payment, and those who do are unlikely to serve poor consumers. Solving this is a critical piece of the financial inclusion puzzle. As more and more low-income consumers are obtaining accounts, and DBTs are flowing into those accounts, being able to make active use of these accounts requires greater merchant acceptance of digital payments. 
 Finding ways to increase usage of digital payments between merchants and consumers is an important short- and medium-term step toward a more inclusive and active digital economy that extends across society, including to low-income demographics. In the long-run, sustaining focus on this issue will be critical for both the government and the private sector. It’s important that the private sector sees a long-term opportunity to viably and responsibly meet the <keyword id="6354241" type="COMPANY" weightage="20" keywordseo="Financial-Services">financial services</keyword> needs of the poor, by designing, testing, and scaling business models that increase use of digital payments wherever consumers shop. 
 
 
 
 
BI: In a country like India the major problems are reaching out to public, low income and the necessary digital infrastructure to support the initiatives of financial inclusion. How do you see that? 
 
Matthew: With one billion mobile phone connections in India, mobiles have the potential to be one of the most effective channels for delivering critical services to the public, particularly low-income and underserved communities. However, without effective and widespread digital infrastructure, it will impossible to achieve deeper financial and economic inclusion for all of India’s citizens. The public and private sectors both have a role to play in building this infrastructure, and we have seen important public sector investments in payment systems and other critical digital infrastructure. To effectively meet the last-mile access needs of low-income and rural populations, significant private sector leadership is needed. For example, building a digital payment network that reaches all of India’s merchants can’t be accomplished without compelling business models that are attractive to merchants, consumers, and other other private sector stakeholders. This is one of the goals of the Partnership we’ve organized with the Ministry of Finance, one which includes nearly 40 private sector member organizations. 
 
 
 
BI: What can India do to achieve next level of economic gains through digital? World is already watching India and its economic outlook with great optimism but problems and challenges are plenty. How tech can help achieve the dynamism India is looking for? 
 
Matthew: Transitioning from cash to a less-cash digital economy won’t happen overnight. Digital infrastructure, like digital payment networks at point-of-sale, is an important enabler. But just as important is creating incentives for this shift to happen. Enabling must be coupled with incentivizing. Technology and innovation can have a huge impact, especially when they are accompanied by effective policy incentives and business models that reach low-income populations. Among population segments that are generally unaware of these tools, targeted marketing that appeals to the needs and wants of specific population segments can also be essential. 
 
BI: Many people are under extreme poverty and many are struggling for basic financial necessities. What could be done through digital tech based on the ideas and findings of the report? How to catalyze India's digital growth and what impact it would have globally? 
 
Matthew: Digital finance tools such as digital payments can help alleviate poverty in a number of ways. This can include, for example, enabling low-income consumers to store and save their money more safely and securely, reducing the amount of time needed to travel to obtain or cash a check, improving ability to handle emergencies, and developing a digital transaction history that can be used to provide access to additional financial services such as credit. Importantly, digital payments also enable consumers to participate in the growing online and digital economy. 
 
Our research is intended to help us better understand the financial behaviors and perceptions of consumers and merchants when it comes to making payments digitally. The report, <a href="https://www.globalinnovationexchange.org/beyond-cash">Beyond Cash</a>, uses quantitative and qualitative research methods to answer that question and identify potential actions that can lead to widely-used digital payment networks, particularly among low-income populations. The report also includes a rich dataset that is available for public use. As we think about extending digital payment networks to the poor, the research provides some insight about how to move forward. 
● First, to increase the number of merchants who accept digital payments we must focus on creating incentives for consumers to pay electronically. Our research indicates that merchants are much more willing to accept digital payments if their customers demand it. 
● Second, early adopters should be incentivized to sign up others and the cost of trying digital payments should be as easy and inexpensive as possible for both merchants and consumers. Merchants report that even if they would like to try accepting digital payments the cost of trialing is too high. 
● Third, digital payments should focus on mimicking what consumers and merchants like about paper payment instruments (e.g. cash or check) while also solving for clear pain-points they experience in the cash economy. (The research identifies a number of pain points and suggests a variety of responses). 
● Fourth, and to me this is the most important factor, digital payments must connect merchants and consumers with something more valuable than any digital transaction itself. For merchants, this may be the ability to reach new market segments or have access to better inventory management tools. And for consumers this could include being able to participate in the online economy or being able to more quickly pay and board a bus without exact change. 
 
Engaging all Indians in the digital economy would benefit not only individuals themselves, but the Indian economy too. And as India identifies opportunities to lift the poor out of poverty using the digital economy, these learnings will be of keen interest across other markets as well. 
 
BI: Digital divide, how to overcome this main problem? 
 
Matthew: While our research doesn’t examine this larger question, it does point to the importance of designing financial services and products with a variety of users in mind. This means, for example, better understanding the use cases that appeal most to digitally marginalized populations and creating targeted outreach efforts that highlight those use cases. I think it also suggests the need to think out-of-the-box with regard to business models that meet the needs of un- or underserved consumers. Business models that work elsewhere or with other population segments may not work for these populations and we may need to try entirely new approaches. This is really what our Partnership is all about, and we’re focused on using the research we’ve conducted to now to test a variety of business models to find out what really works.

‘Beyond Cash’: India’s inclusive digital economy is on top gear

<ul><li>On the anniversary of demonetization, Business Insider takes a look at how digital payments benefitted from the note ban. </li><li>According to a RBI report, the number of digital transactions is going to go from 20.6 billion in December 2018 to 87 billion in December 2021.</li><li>Payment companies like <keyword id="6357120" type="DEFINITION" weightage="20" keywordseo="paytm">Paytm</keyword>, MobiKwik continue to be leaders of digital payment transactions.</li><li>However, currency circulation is back at a 5-year high.</li></ul>Three years ago, Prime Minister Narendra Modi in an evening address shocked the nation by banning ₹500 and ₹1000 currency notes. The move crippled the economy, threw businesses into confusion, the effects of which are being felt even today. But there is one billionaire, Paytm founder <keyword id="198636" type="PERSON" weightage="20" keywordseo="Vijay-Shekhar-Sharma">Vijay Shekhar Sharma</keyword>, and his peers including 19 new digital payments <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> clearly gained from the note ban. And Sharma knew the potential of this decision the moment it was announced. The day after demonetisation, Paytm released a front page advertisement in most Indian newspapers, thanking the Prime Minister for the note ban while the rest of the country cribbed and clamoured for cash. At the same time, according to <a href="https://www.moneycontrol.com/news/business/startup/demonetisation-how-paytm-gained-from-note-ban-and-why-it-used-pm-modis-pic-in-ads-2432963.html">reports</a>, Paytm saw a 200% increase in downloads on the night of demonetisation. In August 2016, Paytm was valued at $5 billion, which went up to $6 billion in the next year. Today, the company is set to hit $16 billion valuation, according to <a href="https://www.businesstoday.in/current/corporate/paytm-to-raise-another-usd-2-billion/story/384762.html">reports. </a> Paytm had 140 million users in October 2016, and today has over 350 million users. In the Hurun India Rich List 2019, Paytm founder Vijay Shekhar Sharma is the only startup founder to be in the top 50 of the list. Sharma has a net wealth of ₹20,400 crores. And he is not alone. Since 2016, there are over 19 funded startups that have come up in the digital payments sector with 10 of them coming up after demonetisation. The sector since 2016, has seen great investor investment over $641.6 million in funding, according to Tracxn (the number excludes startups founded before 2012 like Paytm, Mobikwik etc.) According to a Reserve Bank of India <a href="https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/CDDP03062019634B0EEF3F7144C3B65360B280E420AC.PDF">report</a>, the number of digital transactions is expected to increase more than four times from 20.6 billion in December 2018 to 87.07 billion in December 2021. “The payment system transactions in 2017 grew by 44.8% over the previous year (over a strong year-on-year growth of 56.4% in 2016) even after cash availability normalised after demonetisation showing that non-cash payments were slowly becoming a habit for the users. This is also demonstrated by the growth of 54.3% in the financial year 2018-19 over the previous financial year,” said a Reserve Bank of India report. The government-owned Unified Payments Interface (UPI) has crossed 800 million users already and its transaction volume has grown from just 285,000 in November 2016 to 1.15 billion in October 2019. 
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 The use of cards and electronic wallets among people has definitely increased but its link with demonetisation is not clear. Data showed that electronic payments in retail transactions decline in the year of demonetisation and the one after that⁠— may be due to fall in consumption due to the cash crunch and confusion caused by the note ban. It’s only in financial year 2019, that electronic payments showed a sharp increase. 
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 Cash is coming back However, while digital payment continues to be on the rise, cash too is creeping back into the market with big numbers. 
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 However, according to experts the number is still low compared to India’s GDP. “Economic growth has been possible through many transactions – that are done primarily in cash. This demand for cash has led to a large growth in the Currency in Circulation (CIC). CIC grows with GDP, and inflation. Even after demonetization, CIC has come back up rapidly – though not to the same level as would be predicted by GDP growth rate and inflation,” said the Nandan Nilekani report on digital payments in India. See Also: <a href="https://www.businessinsider.in/stock-market/economy/news/moodys-rating-and-outlook-for-indian-economy/articleshow/71967678.cms">Upgrade post demonetisation, downgrade post tax cuts⁠— Moody's mood swings expose the economist’s inertia</a>

A new billionaire in India’s top 50⁠ and 10 new startups that have demonetisation to thank

<ul><li><keyword id="604304" type="General" weightage="20" keywordseo="ags-transact-technologies" source="Orion">AGS Transact Technologies</keyword> is an omni-channel payment solutions firm, which provides digital and cash-based solutions to banks and corporate clients.</li><li>The company is looking to raise ₹800 crore through the <keyword id="6354763" type="General" weightage="20" keywordseo="ipo" source="Orion">IPO</keyword>.</li><li>The IPO is a complete offer for sale of ₹792 crore by promoter Ravi B Goyal and the rest by other shareholders.</li></ul>AGS Transact Technologies, a payments firm, is looking to raise ₹800 crore through its initial public offering (IPO). The IPO is a complete offer for sale (OFS) by existing shareholders wherein ₹792 crore will be sold by promoter Ravi B Goyal and rest ₹8 crore by several other shareholders. Prior to this, the company had made several attempts to go public. In 2015, it filed draft papers to raise ₹1,350 crore and then in 2018, it filed to raise ₹1,000 crore through an IPO. Reports say it had received the regulator’s nod, but did not go ahead with the plan. The company offers cash and digital payment solutions and automation technology. It provides customised products and services comprising ATM outsourcing and cash management, as well as online payment systems including payment provider for merchants, transaction processing services and mobile wallets. According to the DRHP, as of March 2021, it is the second largest company in India in terms of revenue from ATM managed services under the outsourcing model, and revenue from cash management and number of ATMs replenished. During the same period, it deployed more than 2.07 lakh payment terminals and was one of the largest deployers of POS (point of sale) terminals at petroleum outlets in India, having rolled out integrated payment solutions (IPS) at more than 16,000 petroleum outlets with 28,986 terminals in India. It serves industries such as banking, retail, petroleum, toll and transit, cash management and fintech in India and other select countries in Asia. But in the last three years the company’s revenue has been on a decline. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Profit </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY19 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹1,805.70 crore </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹66.1 crore </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹1,800.40 crore </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹83 crore </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹1,758.90 crore </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹54.7 crore </td></tr></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/10-nifty-50-stocks-with-more-than-20-percent-fpi-holding-under-pressure-on-concerns-over-foreign-inflows/slidelist/85485995.cms">The fear of dollar exodus has beaten down these ten stocks</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/cardano-is-hitting-new-high-as-investors-are-confident-about-its-upcoming-smart-contract-system-alonzo/articleshow/85486235.cms">Cardano overtakes Binance Coin to become the third largest cryptocurrency — here’s what’s driving the rally</a>

You Searched For "india cash payments" and got 10 results

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Digital payments: The inflexion point and the curve ahead

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‘Beyond Cash’: India’s inclusive digital economy is on top gear

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A new billionaire in India’s top 50⁠ and 10 new startups that have demonetisation to thank

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