Winners of the cashless economy

With the growing popularity of electronic banking, some of the technologically advanced nations shifted to non-cash transactions as early as 1990s. By 2010, online payment solutions had spread to almost the entire world. Countries now wanted their citizens to transact through online media using net-banking, cards, wallets etc. Online Payment gateways grew in business. In fact, it is estimated that the proportion of non cash transactions will overtake cash transactions by 2023.This can easily be supported by the fact that about 81% of the users of digital payment instrument prefer it to any other non cash payment method. Mobile banking will see a major boost and is likely to rise at a compounded annual growth rate of 27% during the year 2016-20.

India is still in the nascent stage of this transition. With the government’s initiative towards driving a cashless economy, Indian payment industry has received a boost. The online payment gateways are working on providing an integrated platform to its customers to ease payments – one payment solution for everything. In comparison, some countries are already ahead when it comes to online payments. They have well adopted the payment solutions and engage in non-cash transactions with ease.

USA, which is considered to be the most innovative and advanced economy, is still at number 8 when in providing online payment solutions with 80% of its payments happening through non cash methods. The list is topped by Belgium with 86% of the population holding a debit card and the country accounting for 93% of non cash payments of the total transactions. The Belgian government has supported this movement by putting a limit on cash payments (3000 Euros). It also actively supports new venture when it comes to online payments solutions.

Next in line is France (92% non cash payments) followed by Canada (90% non cash transaction). France has been an avid innovator when it comes to the payment industry. It has always tried to bring in new payment solutions like contactless card, mPOS etc. Canada on the other hand has always been an early adopter of different online payment solutions which boosts its non-cash transactions.

The only Asian country to make it to the top ten is South Korea. Online payment solutions here account for 70% of the total payments while only a mere 58% of the population own a debit card. Coming to India, UPI and Digidhan movement are helping in moving towards a cashless economy oriented towards online payment solutions. Payment gateways in India get the right platform to provide these services. Also, Government’s efforts to engage more and more people on the online platform by introducing BBPS, UPI and working on KYC relaxation and Aadhar integration has given a major uplift to the online payment industry. Though it is a long way, India has been trying to catch up with the world when it comes to online payments, and seems to be on the right path so far. We can only hope for the best now!

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