‘DeMo Has Hastened Digital Transactions’
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)