Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Many CEO/CXO Bankers & Fintech professionals, Founders on FIAKS Forum requested to remain anonymous
- Mr. Anand Aggarwal, Director, Standard Chartered Bank
- Mr. Neeraj Chandra, Head of Operations & Technology, Abu Dhabi Commercial Bank
- Mr. Raghu Veer Dendukuri, Product Owner, Intandemly
- Mr. Ram Shriram, Founder & CEO @Mahagram
- Ms. Priti Shah, Co-founder & CEO, Payswiff Solutions
- Ms. Kaunain Esmile, Head of Customer Experience DBS Bank
- Mr. Ramasubramanian S, Application, Transformation, Management and Operations Head, DXC Technology
- Mr. Harveer Singh, former Head -Product Marketing, Empays Payment Systems
- Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
Digitalization, as we know, is one of the major steps that has helped India as a country to move forward progressing in the many different fields that its spread across like payments, banking, international/domestic trade and other areas. To enhance the usage of digital platforms over traditional methods the Digital India movement was launched. Recently our community member raised the concern on why is digitalization unnecessarily pushed on to customers/merchants? What is so incorrect about the smaller value cash transactions?
Let us first take a look at an example that was illustrated by one of the members, If a 100 Rupee note is circulated exactly 1,00,000 times it will have the same value that is no one gets any commission but if the same exact amount of money is circulated through cashless transactions that are via Debit cards, e-wallets, etc and if each transaction fetches say around 2.5% commission (2.5% is taken for purposes of illustration) that means 1,00,000 times 2.5% which in turn is Rs. 2,50,000 (Two Lakhs fifty thousand Rupees) that is paid to the Payment service providers and that too just for a sum of hundred rupees. Now compare this amount of Rs 250,000 with the cost of printing Rs 100 note.
Cash handling is the problem of the banks and the digitalization is helping banks. Hence Banks must compensate/support payment companies associated in digitalization for solving the problem of CASH says, expert
He adds by saying there is honestly no need to push digitalization for smaller value transactions. A choice must be given to the customer so that he/she can decide on the payment method that he/she wants to adopt at the given time. The smaller value cash transaction is not a problem at all for the merchants or even the customers and it’s incorrect to ban or discourage cash completely.
In favor of the Payment Service Providers/ Fintech Companies
What most of the banks forget is that the entire SME segment is bought into the digital payment ecosystem and it is happening because of the payment service providers or fintech companies that is its major booster, until then banks were only targeting the cream of the ecosystem that merely floats and does not offer payment services per se as a solution. Register and read the complete discussions.