steering india to a cashless economy
TRANSCRIPT
Steering India towards a cashless economy
Varsha SutraveHead – Partnerships and Alliances
UnoPay
233 million Indians have never seen a bank
zerObalance accounts
Only 1% India’s total purchases through credit cards
95% cash economy
97.5% corporates have lowest visibility of cash position
480 man hours/week wasted in cash assessment
Send/Receive money-Phone number-An Adhaar number-Simple virtual-payments address
India stack-APIs-Interfaces
Save on Cost of Cash-Capitalize on dead cash-Loss of physical money
“The 2016 Global Payments Insight Survey: Merchants and Retailers”
A survey of more than 1000 retailers, revealed that merchants, billing organizations, retail banks and transaction banks are all committing significant
investment to payment over the next 18-24 months.
The move to ‘less cash’ has already started.
The smartphone—already a Swiss-army knife of information, content and entertainment—is rapidly
becoming a convenient medium for making payments.
What makes mobile more powerful than any other medium?
It provides the opportunity for:bi-directional, real-time, interactive relationship
with end users
Means to achieve cashless economy
Mobile Internet & Connectivity
New-age payment devices
Security Infrastructur
e
Consumers want personalized experiences, but their privacy & security concerns are higher than ever.
“We want our money safer than our selfies“– PayPal
“Technology has a multiplier effect for solving social problems”
Tarun KhannaHarvard Professor and Chairman, Expert Committee on Innovation and
Entrepreneurship, Govt of India.
Aadhaar reached its milestone of registering 1 billion people.
80% of population covered
Barriers & Catalysts in the Payments ecosystem
Barrier #1Tax evasion opportunities ensure cash is sticky
CatalystsDisincentives for tax evasion:
Use of cash for large transaction is the rational choice. Costs of non-compliance have to be greater.
Barrier #2Majority of wage earners receive cash payments
that never enter the electronic payments ecosystem.
Abhishant Pant’s 50 day cashless journey
Catalysts• United Payments Interface• Receiving & Withdrawal is done… Spending yet to take
shape
Barrier #3No clear roadmap for moving towards market
determined charges & investments.
Catalysts• New bank licensees and well funded fintechs will ensure
price wars, at least in the short run. • Map incumbents and disrupters• Creative business & revenue models
Barrier #4Non-interoperable systems could increase resistance among consumers.
Lets rethink payments in every sector!
Hospitals
Tolls, Petrol stations
Utilities
Schools, Colleges, Institutions
Travel sector
Kiranas
Public transport
Insight #1The less information the consumer has to manually enter, the better the adoption
rate.
Insight #2 High demand in the B2B space, however current
regulations and market dynamics play spoil sport.
Insight #3Cost is too high for small ticket transactions.
Insight #4 Consumer’s expectation that - they can get what they want with ease and speed will continue to
rise.
Insight #5 We need Regular and faster settlement:
Insight #6Alliances and meaningful partnerships.
India needs to build bridges between startups, corporates and governments to accelerate the
benefits of entrepreneurship and generate more leapfrog effects.
Let’s craft a renaissance in the Indian payments space
…because a billion lives will thrive !
Thank you
[email protected]: @varshasutrave