The Boston Consulting Group (BCG) and Google recently came up with a very intriguing report on the global digital landscape with some captivating insights on the Indian scenario. As evident from the report, we have seen a significant rise in the digital payment acceptance and use across nations. A key factor that has contributed to this is the ongoing technical and digital revolution, in which the penetration of smartphones has played a pivotal role. This technological leap has acted as a catalyst to the growth of large number of Non-banking financial institutions that have entered the foray of providing the customers & merchants the much needed financial ease and flexibility, an important driving factor for which has been the need of customers for a one touch payment solution which is secure and easy to use.
When we look at the Indian scenario specifically, this transformation of payment landscape is much more evident and important. The recent times have seen the growth of mobile internet in India, coupled with the growing acceptance of digital wallets and QR codes as payment facilitating tools.
The Digital India initiative has bolstered the penetration of 3G & 4G networks across the Indian landscape and encouraged the consumers as well as merchants to adopt a digital lifestyle. The twin challenge of “the habit to use cash” and the “complexity of digital payment” which the Digital payment revolution is facing the world over, are being encountered in India with a proactive approach by the regulatory authorities. The initiatives like the UPI (Unified Payment Interface) , e- AADHAR making the KYC easy and efforts to make the two factor authentication more user friendly are sure to invert the cash to non- cash ration in the years to come. The digital payments will also open door to various services that can be offered to consumers’ basis the analytics around the data received through these transactions. Discount offers, promotional content, services can be designed and customized basis the trends around the vast and important data that will be captured basis the digital payments. Also, the merchant acceptance of digital payments is set to grow to 10 times of what it is today. The key drivers for this will be the inexpensive mediums of payments like QR code system, mobile wallets, app based payment mechanisms. As is evident from the report the future of digital payments in India looks promising and emboldens us at NeoGrowth to continue pursuing our Fintech goals with more determination and vigour.
(Source: “Digital Payments 2020 by BCG & Google)