Digital payments in India rise to 55% in FY’17
The Economic Times posted news dated July 03, 2017 around 3:11PM stating that digital payments in India rise to 55% in FY’17. According to Niti Aayog Principal Advisor Ratan P. Watal that this trend is likely to continue in the coming years indicating that India is at “the cusp of revolution” in this area.
The government of India demonetized high value currency (Rs 500 and Rs 1,000 notes) last November and has been promoting a less cash economy through greater push on digital payments.
The volume of overall digital payments recorded a compounded average annual growth rate of 28% from 2011-12 to 2015-16. Watal also said at the event organized by industry body Ficci that “these figures are truly reflective of the fact that India today stands at the cusp of a digital payments revolution.” He added “due to innovations in digital payment technologies and increasing consumer satisfaction, the growth trends in digital payments are positive and will continue to dominate the payments landscape in India.”
Percent of GDP during 2011-12 to 2015-16 which hovered around 12% now declined to 8.8% during 2016-2017 reflecting the impact of demonetization partially offset by the ongoing re-monetization process.
But around April 2017, there has been a significant growth in Digital Payments as compared to April 2016.
India took a risk in demonetizing high value currency in promoting cashless economy to push on digital payments. We all know that adapting this change on the economy there are really ups and downs to it depends on how consumers are embracing it. But it’s a good risk though cause it really did paid off. We can see the sudden change on the percentage rate of their digital payments as early as first quarter of this year. So it means that consumers find it more convenient in such a way that doing business in this manner will help them transact business easily. Aside from that they no longer carry money in their wallet. It is safer for their citizens, to prevent money from being stolen or any related acts.
The commission acknowledges the bold risk that India took, We encourage other countries as well as organization to promote the use of cashless currency or crypto currencies all over the world. The commission will be setting up law and guidelines regarding on this matter so that everyone will be guided on how to use crypto currency or as the layman know it as e-money.
It is truly amazing how digital payments can help consumers and business owners the overall satisfaction when doing transactions. As far as we know we love to do things which we’re comfortable and convenient of doing. We cannot deny the fact that in this digital world, being digital in doing business or even the basic things that we do provides as the most convenient way to satisfy us in every way.
It clearly shows that each of us, a consumer will truly adapt this kind of change to provides us the best for our lives. We are already adapting digital technologies to make our jobs easier and make it faster. Having this, digital payments –this truly increase the numbers of consumers that will embrace it. As what Jef Raskin once quoted, “what users want is convenience and result” and that answers the importance of electronic money on this digital transactions.