You are here:  IT News  »  Article

 
28.11.2016

After Demonetization, India’s digital payment market explodes


Following a controversial decision of the Indian government to ban two of the major bills in circulation (500 and 1000-rupee notes), the floodgates have opened for a new tech market. Digital payment is exploding in the country right now, with one provider (MobiKwik) saying it’s seen a 75-time surge in transactions in one week.


So, what’s happened? Earlier this month, on November 8, the Indian government said it’s banning the two bills immediately. Until the end of the year, people would have to change them for new ones. The thing is, these banknotes account for the majority of the currency in India and 98 percent of all transactions in the country are conducted in cash. What was a move designed to combat corruption and inflation, has been very tough for both the market and the Indian people. But when a market collapses in itself, there’s often something that rises from the ashes. In this case, the potential winner is called digital payment.

“All the reluctance and friction in adoption of digital payments has vanished overnight. We are updating our numbers every day as usage is going through the roof,” said Upasana Taku, co-founder of MobiKwik to Bloomberg. What had been a trend expected to happen slowly and gradually in the next five to ten years, happened overnight. Startups like Paytm have also risen to the challenge and are offering lucrative conditions to get people to choose them as their new digital bank.


---
Source: https://www.bloomberg.com/news/articles/2016-11-23/cash-ban-the-best-thing-to-happen-to-indian-digital-payments
Pic: ©itkannan4u
 
Create your freelance profile and land new projects without any fees!

 Sign up now

More articles

  • Mark Zuckerberg says Facebook wants to fight fake news

    Facebook has come under a lot of scrutiny lately, mainly coming under the allegations that it is doing too little to prevent misinformation spread on the platform. What Zuckerberg previously called “pretty crazy”, namely the idea that Facebook could have influenced the presidential election in the US, now seems to be a serious issue, as outlined by this post. So what’s the strategy?
  • SpaceX wants to launch 4,425 satellites in space for global internet

    SpaceX, the aerospace company founded by Elon Musk, has just filed its plan for satellite-delivered internet delivery from space. As an application to the Federal Communications Commission makes clear, SpaceX wants to launch 4,425 satellites. That’s more than all active AND inactive satellites currently in Earth orbit.
  • Snapchat reportedly files for IPO, could be valued at 25 billion dollars

    The much-awaited initial public offering of Snapchat might be coming as early as March next year, TechCrunch reported last week. The confidentially filed paperwork may value the messaging platform at an insane 25 billion dollars, which would be one of the biggest IPOs in recent years.

Comments

  • No comments available

Comment this article