Demonetisation alone cannot drive growth, cash has come back strongly: Naveen Surya
ET Bureau|
Nov 05, 2017, 12.00 AM IST
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Excerpts from an interview with Naveen Surya , chairman of Payments Council of India, the digital payments arm of the Internet and Mobile Association of India:
On the digital payment options that benefited after demonetisation
The bank account has become the largest bucket. Online payments and debit cards that use the bank account have grown and then there are UPI and IMPS transfers. Now there may be shifts within that bucket as UPI becomes popular. The second bucket is the credit card, which is growing the slowest. The third bucket are pre-paid instruments like wallets. This has grown the fastest, but on a small base. You must remember cash has come back strongly.
On future growth
Demonetisation was a strong psychological message for digital payments, but that alone cannot drive growth. You see the bottom of the pyramid is shrinking. The pyramid is becoming more diamond-shaped and these products must address middle-income groups. You have to find more use-cases that can drive the growth of digital payments.
On the RBI’s October guidelines on interoperability of wallets
It is not such a big game changer. What we need for the wallet to grow is to acquire the universality of a debit card or a credit card.
On the digital payment options that benefited after demonetisation
The bank account has become the largest bucket. Online payments and debit cards that use the bank account have grown and then there are UPI and IMPS transfers. Now there may be shifts within that bucket as UPI becomes popular. The second bucket is the credit card, which is growing the slowest. The third bucket are pre-paid instruments like wallets. This has grown the fastest, but on a small base. You must remember cash has come back strongly.
On future growth
Demonetisation was a strong psychological message for digital payments, but that alone cannot drive growth. You see the bottom of the pyramid is shrinking. The pyramid is becoming more diamond-shaped and these products must address middle-income groups. You have to find more use-cases that can drive the growth of digital payments.
On the RBI’s October guidelines on interoperability of wallets
It is not such a big game changer. What we need for the wallet to grow is to acquire the universality of a debit card or a credit card.
