The example of demonetization has created a huge windfall
gain to the payment solution provider called PayTM. Overnight, literally
millions of people have joined the digital E-wallet enterprise. The idea is
very simple. Reducing the cash supply in the system by changing the high
denomination notes in a surprise and tactical move is at the heart of the
demonetization strategy. Of course digital wallets such as PayTM are excited at
this opportunity which will make them a big player in Asia.
Key takeaway for
payment providers in Asia
This drive by the Government of India has hastened the
creation of UPI (Unified Payments Interface) that allows interoperability
between several banks in India and shortly will be ported to other existing PIs
(payment interfaces) available in Asia. Alibaba, Tenpay, Payment Asia among others have their own PIs and are
linked so that cross border payments is not an issue.
PIs are similar to mobile wallets – open the required bank
app, choose send money, type their identity and amount and it is done. The
transfer is instant and it is irrespective of the vendor’s preference. Several Payment Asia reviews have threads on the initiative by
the Government of India and they universally acknowledge that this is a step in
the right direction.
Other paymentasia reviews are
considering whether such a system can be replicated in countries that have a
high degree of corruption in South East Asia. There are a host of e-wallet
companies in India such as Mobikwik, Freecharge among others that are
witnessing huge sign ups. Talking with paymentasia
representatives who are observing the happenings in India with an eye on the
future they are intrigued and astounded at the kind of adspends on
advertisement displays and the response to it. They see it as a paradigm shift
in the culture of financial transactions with just a stroke of the pen
mandating the ordinance.
If it can be done in a diverse and populous country such as
India then countries with far less population and less diversity can also
replicate this system that ushers in clean and transparent financial
transactions. This idea is certainly worth considering.
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