Digital payments started gaining traction in India around the time of demonetisation in 2016 and have been booming ever since. This has been possible due to India’s strong will to become a cash-lite economy and efforts of multiple stakeholders. The government of India is working for this cause on the front foot and the banks and private players have been equally participating and driving initiatives to boost digital payments.
With Union Budget 2020 around the corner, the businesses involved in facilitating digital payment ecosystem are expecting a nudge from the government. The private players expect the Government of India and leading banks to increase their spending on creating digital infrastructure. It is worth mentioning that both acquirers and issuers have made a significant contribution in enabling card issuance and PoS machines at merchant outlets. As the nation still has miles to go in becoming a cash-light economy, the government must provide Internet facilities to citizens and reduce woes of the telecom sector by consultation. Also, the RBI decision to allow transfer without 2FA is faring well for contact-less payment. An incentive to private players, who play a crucial role in the last-mile delivery of digital services, will be another welcome move.
With the help of the government, by 2025, online transactions in India could be worth $1 trillion per year and digital infrastructure can significantly help to achieve a $ 5 trillion economy.
Views expressed in this article are the personal opinion of Rajesh Desai, CEO & Director, Lyra Network India.