On September 8, Google, the world’s largest Internet company, launched the Digital Payments App ‘Sharp’ in India. Like Bhima to Aadhar, this is another cashless payment platform, which was offered 11 months ago after the note-off. Bright has been launched at a time when the trend is seen in the case of digital transactions. It increases in a few weeks, then it remains flat in some. However, in total, cashless payments are getting significantly higher than before the cancellation.
The biggest question is whether the government’s target of 25 billion digital payments will be fulfilled by the end of this financial year? There is now a time remaining of 6 months in the end of FY 2018 and the amount of transactions that are targeted by digital media is being made from this route only one-third of the payment. For example, take a debit card. There are about 70 million debit cards in the country, and surprisingly, there is little use for payment except for ATMs. Due to the low number of point of sale (POS) terminal or card swipe machine and concerns related to securities, few people use the debit card for payment. There are 70 million debit cards, but the number of POS machines is only 25 lakhs. Most of these machines are in some urban areas.
Parag Rao, head of card payment products and merchant acquiring services of HDFC Bank, said, “After the ban, there was a three-fold increase in debit card usage, which has now dropped to two times. Debit cards are the option of cash, but many people are making more use of cash for payment. Realizing the lack of digital payments, YES Bank’s Chief Digital Officer Ritesh Pai said, “The use of cash is a matter related to behavior. People pay vendors, suppliers on daily basis and many of them use cash for it. Sometimes a person who earns money in the family does not understand the technology so much that he can pay with the help of app. Despite this, after the ban, digital payments have increased at least four years ago. ”
Digital is the future
Regardless of the digital payment, the mixed trend is still visible, but in the future, the use of cash in the future is certain. Now more than 95% of transactions are being done through cash and check book. According to a report by Digital Payments in India, by 2020, the total payment is likely to reach 500 billion dollars by digital mode. By then, Finitech companies will also reach $ 2.4 billion. Google’s Vice President, Product Management, Diana Layfield said, “Digital payments have declined, but this is at least 50% higher than the time of the ban on bondage. It is decided to increase. However, you have to explain the benefits to the people. ‘
The good thing is that people are now carrying digital currency with minimal cash. Before the launch, there were 50,000 fast downloads. At the same time, within two days of the launch, the number increased to 5 lakh. Petty claims to have 26 million users in the country, while Mobicwick has claimed to have 60 million users. At the same time, the country’s largest bank SBI has 19.5 million subscribers. Pettym claims that his wallet has 70 million transactions per day and Mobik claims 30 million transactions.
Digital is being promoted in such areas, which can reduce the use of cash. Fintech leader in PricewaterhouseCoopers, Vivek Belagawi, mentioned in this regard, Mumbai Traffic Fine Payment and property tax payment in Pune. The government has asked to arrange electronic payments on the toll booth in all new trains. However, there has not been any good progress in this case so far. Whereas for Daily Use, there are credit cards and debit card in addition to app like UPI, Bhima, Bashepe, PettyM, Mobikvic, HDFC page, SBI big, drinks, fast, people are still more willing to pay cash.
Although people use the most debit card, its use is reduced for digital payments. Amreesh Rao, CEO, Payments Gateway, said, “The problem is that money is not moving fast. Money can not be transferred when I am talking. Many campaigns are being run to promote digital payments, but small shopkeepers are not being sensitized to accept digital payments. He was the co-founder of Citrus Pe, who was bought by Potu in 2016. He said, “Government is not doing good by giving so many options of digital payment. If you look at the government’s perspective, the messaging should be simple. She should give the message that whatever you pay, just select the digital medium. ‘
Despite many options, the digital payment is not as easy as cash. Ben and Company’s partner Satyam Mehra said, “People less confidence in digital payment.” At the same time, Gartner Research Director DD Mishra said that the complexity of the interface and its process often becomes a barrier to digital payments. Users often have the last option of payment. These people are not compatible with cashless payments.
Yase Bank’s Pie said, “Many people can not make cashless payments without any help. Especially with senior citizen, this is a problem. Many times, educated people are also inconvenient to make digital payments. ‘ The problem may also be that users are being encouraged for digital payments, but shopkeepers are not being avoided to accept it.
Amrish said, “Just saying not to make a digital payment not work. You motivate small shopkeepers to adopt cashless payments. Ben’s Mehra spoke of unbelief about digital payments. He said that people are also apprehensive about security in it. There is no effective system to resolve the dispute in digital payment. That’s why people are not leaving the cache together.
Methods of payment are simple compared previous generations. Payments easily made through fast. Paytmis the same. Mehra said, ‘It needs to be more simple. It should be so easy for people over 60 to make digital payments easily. It needs invested to increase awareness among shopkeepers and customers. ‘
Learn from others
India is trying to move forward in digital payments, but it is a long way to go. Cashless transactions in Sweden, South Korea, Denmark, Canada are up to 75-85%. The use of checks in Norway stopped. It is true that these are small countries and there is a high literacy level. The availability of Organized Retail in these countries is widespread and awareness is more about India than digital media. Gartner’s Mehra said, ‘The mentality of digital first appears in these countries.’
These countries increase it gradually. Ambrisish said, “In these countries, mass-use items such as first transports targeted for digital payments. After that everything integrated with digital payment. ‘ For instance, the Octopus Card in Hong Kong launched in 1997 to provide metro fare. Today, people use it for transport, convenience stores, gas stations, car parking, supermarket and other things. Similarly, ezailink in Singapore and YuPass in South Korea used for digital payment for many things. Most of these cards used for the metro fare. the Metro Card used for rent in Delhi. YES Bank’s pie said, “The world most digital payments used for toll and transit. After digitizing it in India, digital payments increase in other things.
US still has 50% cash count. Rao of HDFC Bank said, “There is a change in India. There is a decline in withdrawal from ATMs. Evolving the digital system. In the next 12 to 24 months, there may be a substantial increase in digital payments. After that there may also be a consolidation in the payment options. The QR code is popular in South Korea and China. Lower Field Communication is a popular way of payment in Japan. There is no such thing as a UPI or QR code in the US, Australia and Singapore, but there is a popular tap and pay option.
Regarding the possibility of Lescash Society, Vineet Singh, Chief Business Officer of Mobikkk, said, “People do not understand the cost of cash. Our parent generation has spent a lot of time doing cash transactions. The case of cashless linked to the literacy rate, net connectivity. ‘ There are half-a-dozen options of cashless payments in the country, even when people do not get out of the house without cash. Notebook has increased the shift towards digital payment, but it will take a lot of time to become a preferred payment option.