Académique Documents
Professionnel Documents
Culture Documents
Aabhas Aeran
Mukesh Ranjan
Only
Cashless solutions are much less in high value sectors of Fruits and
vegetables and processed food
Market Size: INR Billions
Key requirements
Restricted to G2P
low volume
market
transactions
Absence of wide agent
Use for Elders and
networks
women
Technology adoption
Security and
barriers
scalability
Sources: Cash Trends-Road to less-cash, Research report by VISA and IMAI
Industry Data: Euro monitor, IBEF reports
Appendix 1 for data
Non-acceptance of Epayments
Lack of awareness
Low utilization, not pull
product
Existing models
SMS payments
Direct mobile
billing
Mobile
Wallet
Net Banking
Card
Payment
NFC
Benefits
Instant
Money
Transfe
r
Benefits
Mobile
Wallet
Payment Options
NFC
Bluetooth
SMS Payment
M-Payments
Cash like
Component
(with upper limits)
Same as Cash
(Digital Cash)
No 3rd party
Sense
of
Ownership
Money Flow
using Cash like
component of
wallet
Payment to store from cash like component of
wallet and recharging it using bank linked
component from bank account
Internal
transfer
from
bank
compone
nt to
cash
compone
nt of
wallet by
customer
as per his
choice
Easy Recharge Cards Inclusion of children, women, less educated and old people
Key Benefits
Back ground
Moving towards cashless society will be difficult unless solutions
for all the user segments will exist simultaneously.
Only 1 or 2 members in a
family are cardholders
A modern form
of pocket
money ,would
help in
inculcating
cashless
mindset
Mechanism
Recharges it
online or at
retail shops
and gives to
family users
Online or physical
relinquishment of
cards with money
transferred to bank
account
Bank issues
easy
recharge
cards at
nominal
charges
Payment at POS
at retail shops.
Would work with
normal
Debit/credit
swipe machines
or easy to use
touch and pay
Bank
Accounts
Infrastructur
e
requirement
Loss of cards
Recharge
Points
Earn and
spend in
small
amount. Do
not want to
link bank
accounts with
mobile or use
cards
Involved in
low value
Good
transactions
spending
for daily
power. Cards
shopping,
would reduce
where
the risk of
debit/credit
losing money
are
inappropriate
Challenges and Risks
The final user does not needs to have a bank
account. Even if one of his relatives has, cards
can be used by him on issuance
Installation of card readers or touch and pay
solutions at low value shops.(Grocery stores, Mom
Canpop
be linked
to a pass-code generated by the
and
retail outlets)
card issuer
Less quantum of loss since low value with an
Can
belimit
online or facility can be provided at retail
upper
outlets by providing cash or Bank account No with
a OTP password
Business
Cash accounts for only 4% (global scale) of B2B transactions,
while check payments for more than 23%. This shows that the
usage of cash in B2B segment is very less
B2B payments Environment-Where does cash comes into picture
Cash-less
(through
online
accounts
or checks) Small sized
Mainly in
cash
The employees
Contractors,
of contractors,
Vendors or other
vendors
partners
While the B2B transactions for small sized partners are
cashless(mainly checks), the final payments done by these
contractors(or partners ) to their employees are mostly in cash
Busines
s
Cashless
The business
splits the
amount
transferred
into 2 parts
Small sized
partners
Only account
transferable-No
cash
Cashable part
Success Factors
Employees of
Contractors
Transferred
to Aadhar
linked bank
accounts of
employees
Can be
withdrawn by
contractors
Banks
Tax Rebates
Cancellation of 3% transaction
cost on electronic payments
Rebate on Sales Tax for retail
merchants.
Waiver of charges, convenience
fees and even tax breaks for
consumers
cards/mobile and cash on de
Charge on
high valueusing
cash transactions
money to pay for utilities.
by
&
bank
Rs
BCs
25,000/month)
(Rs
and
fully
49,999/transaction
KYCd
&
Rs
1,50,000/month).
No differentiation between the different kinds
of service
Pre-approval
requirement
forthe
wallet-to-wallet
providers for a similar
service but
differentiation can be
interoperability
Mobile
Money
Accou
nt
Bank
Accou
nt
Individual bank
accounts accessed
through nonbank
networks/technolog
ical platforms
EKO (SBI India)
SMART
(Philippines)
Bank issued
electronic value
distributed by
nonbank to
customers.
Orange Money
(Cote DIvoire,
Senegal and
Mali)
Nonbank issued
electronic value
holding matching
value in bank
Safaricom (MPesa Kenya)
Globe (GCASH
Philippines)
APPENDIX
Appendix 1
Industry
Industry
Size(INR
billions)
Non-cash
expenditure
percentage of
total in Urban
region
8527
0.36
603
0.54
Processed foods
2247
0.27
Durable goods
5293
1.4
3390
2.65
Personal care
732
1.24
toiletries and
Sundries
Source:
Non-Cash Expenditure were obtained from Road to lesscash, Research report by VISA and IMAI
Tobacco
620
0.5
Industry data was obtained from Euromonitor. Cases were
industry size was available in terms of only units, suitable
assumptions were made to arrive at the industry size in INR
Invoice
Timing
Onemany
Payment
s
Data
P2P
B2B
Bill is optional
Immediate payment
Payment of multiple
invoices at a time
Complete payments
Can be partial
Payment description
not required
Payment description
required
Source:
http://traxpay.com/2014/02/delighting-and-de-risking-b2b-transactio
ns-for-the-digital-age