Digital India: Empowering a Connected Nation through Technology
The fast expanding digital payment ecosystem in India will help in navigating the Covid-19 pandemic crisis. The Aadhaar Enabled Payment System (AEPS) with 1.25 billion unique Aadhar cards is an unparalleled payment infrastructure ripe for entrepreneurial innovation. More than three hundred million Jan Dhan account holders were recent recipients of Direct Benefit Transfer (DBT). Add to this millions of digital-savvy MSMEs (Micro Small and Medium Enterprises), and you have a critical mass of consumers for digital payment services. Both central government and state governments use of digital payments as a tool for economic development will further enhance the ability to launch efficient digital first services for tens of millions of consumers.
Sustained need for social distancing and contact-free transactions may be the new normal. Economic activities will have to adapt to this changed world. For instance, the estimated 8 crore migrant workers will benefit from contact-free digital services addressing their pressing need for earning and consumption. As frequent users of domestic money transfer services (DMT) , they form an ideal target group for a digital smart prepaid card linked to an array of complementary digital payment services.
Continuing success of India Stack and JAM trinity solidifies the leadership role of India in execution of digital transformation at scale. Thus, DMT and DBT will continue to drive the adoption of digital transactions in India.
The Phase I initiatives under Aatmanirbhar Bharat Abhiyaan will cover businesses including an estimated 60 million MSMEs. This will result in an explosive growth of digital transactions covering both business and consumer use cases.
We expect the pace of innovation in the payment industry will accelerate because of these favorable market forces affecting a significant population of India including a diverse set of businesses, Keen awareness of these strengths would be a critical factor in successfully overcoming the current unprecedented socio-economic turmoil.
At MSS Payments, it has been our constant endeavor to offer business solutions structured around alternative payment methods - solutions that allow our partners to quickly launch value-added services. As we address the present need of businesses to shift away from proximity-based cash payment transactions, the long term outlook for our industry looks very promising.