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Share of e-Money in India’s Payment Systems Grew to 21.5%, Says RBI

Based on the mix of the countries benchmarked, India is in the lower rung and ranks higher than only Germany and Indonesia, said the report

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Reserve Bank of India. VOA

Getting a leg-up from from the demonetisation of Rs 500 and Rs 1,000 notes in November 2016, the share of e-Money in India’s payment systems grew to 21.5 per cent in 2017 from 0.8 per cent in 2012, according to a new report from the Reserve Bank of India (RBI).

With 345.9 crore e-Money transactions, India was behind only Japan and US in 2017 with respect to volume of e-Money transactions, said the report titled ‘Benchmarking India’s Payment Systems”.

The report, which termed demonetisation “a game-changer for e-Money”, provides a comparative position of the payment system ecosystem in India relative to comparable payment systems and usage trends in other major countries.

While medium to large-value transactions continue to be made through digital banking channels and cheques, the low-value day-to-day transactions shifted to e-Money, it noted.

The study found that when it comes to using e-Money for online transactions, India is far ahead of other developed countries.

“Although behind China, India has a decent 26 per cent of online transactions using e-Money,” said the report.

Picture of Indian currency. Flickr

In terms of the number of ATMs deployed, India is next only to China.During 2012-2017, ATM deployment grew at a compound annual growth rate of 14 per cent.

“While this is good from customer service perspective, it depicts a high demand for cash,” said the report.

However, at the end of 2017, India had 2,22,300 ATMs which dropped to 2,21,703 as on March 31, 2019.

Also Read- Goa App-Based Cab Service’ GoaMiles’ Faces Backlash, Welcomes Ola and Uber

Debit and credit card payments made up 29.9 per cent of India’s payment systems volume in the year 2017.

Based on the mix of the countries benchmarked, India is in the lower rung and ranks higher than only Germany and Indonesia, said the report. (IANS)

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Microsoft Ready to Help Indian Startups, Says President Anant Maheshwari

Microsoft is focused as much on selling third party solutions as their own, and this co-sell motion has helped generate $8 billion in revenue for partners within 18 months

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FILE - Microsoft Corp. signage is seen outside the Microsoft Visitor Center in Redmond, Washington, July 3, 2014. VOA

Armed with a cutting-edge technology platform, a well-established partner organisation and an expansion of M12 venture fund, Microsoft is ready to help Indian startups across the spectrum embrace the next phase of growth, Anant Maheshwari, President, Microsoft India, said here on Monday.

India, which saw a tremendous growth in the startup space in the last couple of years, is now witnessing a growth in the business-to-business (B2B) tech startups coming up with innovative ideas to deal with local problems.

“With our intelligent tech expertise, deep focus on trust and unique global go to market partnering, we empower unicorns and startups to scale sustainably at a global level,” said Maheshwari.

“We remain excited about India’s entrepreneurial startup potential and will continue to accelerate it as a growth engine for the economy,” he added.

India witnessed a dramatic rise of eight unicorns in 2018 from among the start-ups across verticals as against a mere nine in six years from 2011 till 2017, according to IT industry apex body Nasscom.

The start-ups joining the select club for their valuation over $1 billion are Oyo Rooms (hospitality), Zomato and Swiggy (food delivery), Udaan (retailer marketplace), Byju’s, (edu-tech), Paytm Mall (e-tail), Freshworks (software programmer) and Policybazaar (digital insurance).

Maheshwari said Microsoft is uniquely positioned to support Indian startups to achieve scale and evolve from market ready to enterprise ready.

Microsoft, Taiwan AI
A man walks past a Microsoft sign set up for the Microsoft BUILD conference at Moscone Center in San Francisco, April 28, 2015. VOA

The introduction of M12, Microsoft’s venture fund, in India in February is creating new value for startups, VCs and the company itself to maintain the pace and direction of innovation.

“M12 is looking at investing in innovators who have aligned their focus on cutting-edge technologies that better enable digital transformation. The portfolio development team at M12 is specifically built to help support and scale companies by leveraging the expansive resources of Microsoft,” said the company.

According to reports, venture capital investments in Indian tech business-to-business (B2B) start-ups have been trending upwards, with over $3.09 billion raised in equity funding across 415 deals in 2018 — 28 per cent more than $2.41 billion in 2017.

Also Read: Facebook’s Push to Become China’s WeChat May Kill it

Under the “Microsoft for Startups” initiative, startups can co-sell with Microsoft sales teams, get access to top tech VCs in the global arena and mentorship from industry veterans.

In less than 18 months, Microsoft for Startups has closed more than 120 co-sell deals with more than $126 million in active pipeline for startups.

Microsoft is focused as much on selling third party solutions as their own, and this co-sell motion has helped generate $8 billion in revenue for partners within 18 months. (IANS)