Viewpoints

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PERSPECTIVES ON DIGITAL CURRENCY

Jul 22, 2013

Movida

Expanding Access to Electronic Payments in India

It is well-known now that mobile technology has changed the face of electronic payments in emerging markets. For the past decade, mobile phones have been instrumental in providing unbanked and under-banked consumers with secure, reliable and convenient ways to pay and be paid. Although a lot of progress has been made, here in India, more than 40 percent of the urban population is still unbanked and nearly 90 percent of commerce is still cash-based.

Visa and its clients in India are making great strides to change this reality. Recent stats from the Reserve Bank of India prove that progress: there are now 350 million payment cards activated in the country, many of these in rural areas, and penetration of electronic payments is rising. Through our joint venture with Monitise – Movida – we are enabling financial institutions in India to offer consumers to make payments via mobile phone. In fact, earlier today, Movida announced a new agreement with ICICI Bank to offer mobile payments to its customers in India. Everyday transactions like buying tickets, paying a bill or recharging a wireless account can now be made with any mobile phone, not just smartphones.

Because the service is designed to operate across all mobile networks using any payment card – both Visa and non-Visa – we expect that Indian consumers will be able to wave goodbye to long queues while visiting the post office or paying their bills at automated tellers. These transactions, along with insurance premium and other recurring payments, are now available securely and conveniently to clients of ICICI Bank directly via their mobile phones.

As India continues to expand and upgrade its telecommunications infrastructure to rural areas, more Indian consumers will have access to secure and reliable electronic payments and financial services via a mobile phone– a critical step in the migration from cash to more convenient, secure forms of payment.   

In the long run, electronic payments will help to drive financial inclusion and fuel economic development and growth in our country. It is an exciting time and at Visa, we are proud to play a role in the transformation of India.

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Posted by: Uttam Nayak, Group Country Manager, Visa Inc. on July 22, 2013 at 4:24 pm