‘DeMo Has Has­tened Dig­i­tal Trans­ac­tions’

The Economic Times - - Markets: Beating Volatility - Saikat.Das1@ times­group.com

Sin­ga­pore: The gov­ern­ment’s de­mon­eti­sa­tion move has deep­ened dig­i­tal pay­ments pen­e­tra­tion in the coun­try by push­ing peo­ple to pay for per­sonal con­sump­tion items elec­tron­i­cally, ac­cord­ing to TR Ra­machan­dran, group coun­try man­ager for In­dia and South Asia at Visa Con­sol­i­dated Sup­port Ser­vices.

Non-dis­cre­tionary cat­e­gories such as fuel and gro­ceries are also adding to dig­i­tal trans­ac­tions, he said. “In­dia has per­haps leapfrogged three-four years and achieved what oth­er­wise could have hap­pened in 2020,” Ra­machan­dran said.

“There has been a sig­nif­i­cant in­crease in dig­i­tal pay­ments pen­e­tra­tion post de­mon­eti­sa­tion. In the over­all con­text, we look at what is known as PCE (per­sonal con­sump­tion ex­pen­di­tures),” he said.

The cur­rent pen­e­tra­tion of dig­i­tal pay­ments for th­ese ex­penses is 7-9%, ac­cord­ing to Ra­machan­dran. “So this is not a one year or two years, but a mul­ti­year op­por­tu­nity to con­vert cash into dig­i­tal. Con­sumers are slowly but steadily em­brac­ing dig­i­tal pay­ments. Mov­ing to­wards cash­less econ­omy is a Utopian world. Mov­ing less cash is cer­tainly re­al­is­tic and within the realm of 2017,” he said. (The writer was in Sin­ga­pore at the in­vi­ta­tion of Visa)

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