Despite demonetisation boost, digital payment companies still looking to reach critical mass

By: | Published: February 9, 2017 5:28 AM

Even as government’s demonetisation scheme has benefitted the digital payment wallets, there is still miles to go, according to payment companies.

Rajan of FreeCharge added for digital payment wallets to remain useful to both consumers and merchants, the game has to leap beyond convenience.Rajan of FreeCharge added for digital payment wallets to remain useful to both consumers and merchants, the game has to leap beyond convenience.

Even as government’s demonetisation scheme has benefitted the digital payment wallets, there is still miles to go, according to payment companies. Speaking at the 11th edition of the Digital Summit held in the Capital on Wednesday, Govind Rajan, CEO, FreeCharge said, “Despite growing at a rate of 2x for long term sustainance, reaching critical mass is very important for digital payment industry.”

Sameer Nigam, founder and CEO, PhonePe explained, that distribution of digital payment service will play a key role in long term sustainance. “People are eager to experiment. They want to try new ways of payment which will be convenient to use. Hence, it is important to increase the reach of any wallet or payment system,” he said.

However, Sangram Singh, SVP and head, cards, and merchant acquiring, Axis Bank, pointed out that while large ticket size transactions are already taking place online, the real issue resides in the smaller ticket size transaction, as at that level, some part of the population prefers cash-on-delivery.

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Next, G Padmanabhan, non-executive chairman of Bank of India said while the recent push by government has helped drive the society towards being cashless, the inquisitiveness of an audit trail make people wary of digital transactions. “The regulator should remove two factor authentication for small amount to ensure ease in digital transactions,” he observed.

Rajan of FreeCharge added for digital payment wallets to remain useful to both consumers and merchants, the game has to leap beyond convenience. “A payment company cannot only have payment as the single source of revenue generation, it has look at other options as well. For example, we are interested in selling financial services such as products like mutual funds to our users. This will another stream to generate revenue and for this we will need to tie-up with a bank,” he explained.

Deepak Chandnani, CEO, South Asia and ME, Worldline by Atos said that another issue in the business is that merchants don’t fully understand digital transactions. “As we move towards digital transactions we should ensure that it is implemented well in the society. We need to make digital transactions simpler and faster,” he added.

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