Category Archives: India

Cashless in India

img_9371The Demonetization has taken everyone even the ones who announced it by surprise, and suddenly there is deafening noise about digital economy. Digitization has been a known challenge in Indian economy mainly due to 2 two reasons :

  1. Not all are educated enough
  2. Not all have internet connectivity

However keeping aside these teething issues, I would like to look into the areas where I certainly would like to have digital involvement rather than physical money.

Toll Plaza

Demonetization or not this is one place which should have had cashless transactions long back. The people using Toll plaza are either rich or part of organized transports like Trucks and buses. A cashless usage of Toll plaza can reduce the average transaction time significantly where the toll attendant has to tender the change back, enabling less stagnancy and faster movement of vehicles. (Paytm has recently announced it’s partnering with NHAI for the same)

Public Transport

Public transport like Train, Metro, Bus, Taxi and Autos. This again is one more place where cashless transactions can help a lot both to the passenger and the providers.  Developed cities use single prepaid cards that could be used across multiple public transports.

Utility Bills 

Utility bills like Telephone, electricity , Gas, etc., are one more candidate for online payments and indeed many of them have already started online payments. No one stands in lines to pay these bills in cash now a days. But these services require you to have a debit/credit card which can be one issue.

Small Vendors

Small vendors like Milkman, newspaper vendors, Tea shops , kinara shops still depend a lot on cash transactions and this is where the rubber meets the road and real change is required to enable them with cashless POS (Point of Sale) devices. The recent demonetization has shown how these small vendors too have adopted cashless transactions had proved that all we need is a will to change the means will follow.

It wont be long before India adopts the digital revolution. This also signals a huge potential for startups and biggys to come up with innovative ideas and ride this wave of digital economy.

Digital India campaign launched by the Government of India to ensure that Government services are made available to citizens electronically by improving online infrastructure and by increasing Internet connectivity or by making the country digitally empowered in the field of technology.