Although digital payments and wallets have garnered much publicity, India’s transformation into a cashless economy has made only limited progress, reports MasterCard.
The US based financial services company is conducting awareness workshops across the country in association with Confederation of All India Traders (CAIT) to promote digitisation of payments among Indian traders.
MasterCard is urging India’s micro, small and medium enterprises (SMEs) to take up online payments, which currently account for just 4% of total transactions in the country with the remainder still employing cash.
“Small merchants are yet to realise the positive impact digital payments could have on their business,” said Ravinder S Aurora, group head, senior vice president, MasterCard. The group has joined forces with the CAIT in training over 50,000 traders across the country under the digital campaign exercise, he added.
“The shift to electronic payments indicates shift from formal to informal system. It brings operational efficiency, transparency, reduces costs,” said Aurora. MasterCard is promoting the benefits of cashless payments, such as how they provide merchants with data that they can use to fuel their business as well as educating traders on how they can grow businesses online.
Aurora said that the group is in talks with India’s central and state government agencies, and had also signed a memorandum of understanding (MoU) with the state of Gujarat to bring in digital payments for traders.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.