Winners of the cashless economy

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Winners of the cashless economy
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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.
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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.
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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.
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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.
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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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Shoeb Mannur
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I am a Professional Blogger and Content Writer
for Easebuzz. A online payment gateway solution.