Digital payments are now the default mode for a large section of the population due to the Covid-19 pandemic and bouts of enforced self-isolation.
In the last financial year, the volume and value of paper-based instruments such as cheques have fallen, while retail digital payments led by UPI-based transactions have improved, said Nikhil Sahni, division president, South Asia, Mastercard.
“Internet connectivity, smartphone ownership and provision for Jan Dhan accounts, something the prime minister himself envisioned, have been steps in the right direction as far as digital payments is concerned,” Sahni said in his closing address at the ET Financial Inclusion Summit.
In the last financial year, the volume of paper instruments like cheques had fallen by 35% and 28% by value. At the same time, retail digital payments rose 16% led by a doubling of UPI-based payments.
“Government spending on digital infrastructure at a time when private consumption is fundamentally sagging will boost economic growth and have a multiplier effect, making economic activity much more efficient and environmentally sustainable,” Sahni said.
The government must create a regulatory regime that enables interoperability across platforms to enable people and businesses to make payments across devices without any fiction.
“Regulations should aim at desired outcomes regardless of the players who deliver them and create conditions for competition where required and collaboration where needed. We need data protection laws that encourage ethical behaviour and do not disadvantage people and players to the common detriment,” he said.
Mastercard plans to convert 1 billion people and businesses across the globe to digital payments in the next four years after introducing it to 1 billion people between 2014 and 2020.
“Our investment in financial inclusion is part of a wider commitment to society…Mastercard will be delighted to partner with the government as well as other players in enabling a truly
,” Sahni said.
Source : From the Web