Credit cards have been leading in the last 25 years, but debit cards are a more recent development. Regarding debit card infrastructure, India now has over 560m debit cards. Banking inclusion has been greatly enhanced. All 170m beneficiaries were to be brought under the program by June 30, 2015. NPCI recently confirmed that over 150m bank accounts have already been linked to Aadhaar numbers. It has created the rails to transfer benefits from the government, for instance LPG and fertilizer subsidy. This received a massive boost from the launch of the Pradhan Mantri Jan Dhan Yojana (Prime Minister’s Benefit Fund) launched a year ago. What about the progress of Aadhaar-linked bank accounts and other key enablers?Īadhaar has been an incredible journey with millions of customers enrolled. This would be much higher than current estimates, and we would reach an inflection point sooner with this planned government intervention. If that happens, what is expected to be a $150b card industry over next 4 years could be pushed 50% higher going up to $250b-$275b by 2020. Some are likely to relate to tax incentives for merchants and consumers to pay electronically. The Government vision for less-cash is expected to bring out specific exemptions. The overall economic trends are also looking up?Ĭertainly, if you look at GDP growth, positivity is back! We are looking at a 7.5% growth in GDP expected to be the highest in the world.Ī bigger driver for electronic payments is that currently over 90% of retail payments are in cash. Overall in the market today card payments is a very small market as compared to US, UK, Australia and others but we expect 25-35% growth over the next few years. In terms of horizontal segmentation, large merchants of the country have already progressed in electronic payment, but today we see a lot more opportunity with small stores that accept only cash. We also talk about point-of-sale (POS) as a vertical, within which Modern Retail is progressing very well, growing from just 5% of retail to 20% by 2020. Travel booking on the internet is already heavily penetrated, covering almost 100% of bookings and accounting for 75%-80% of online payments but this is fast reducing to 55% as online payments for retail, telecoms, utilities, insurance and tax take off. In terms of vertical segments, E-commerce and especially E-tailing (Retail Sales on the Internet) is really important for us. Nitish, from your key perspective, which market segments seem to hold the most promise?Īctivity in the payments space crosses a wide range of transactions across a set of vertical and horizontal segments. Our issuing platform business runs on VisionPLUS, a First Data product and powers our service to leading banks in India. We offer POS, online, mobile and merchant processing and settlement for a broad range of consumer and business payments. Our two lines of business are Merchant Services and Issuing. First Data operates through an alliance with ICICI Bank (India’s largest private sector bank), ICICI Merchant Services. In India we are one of the leading merchant acquirers, providing services to over 250,000 merchants. At First Data India ventures, we focus on venture investments in POS, e-commerce, mobile commerce and digital payments.įirst Data is the global leader in payment technology and services solutions, operating in over 70 countries with relationships with over 3,500 Financial Institutions and offers a range of services including POS, E-Commerce and mobile (on internet and POS). I am the VP & Head of First Data India Ventures and have also led First Data’s merchant acquiring business in India. Thanks for taking time out from your busy schedule Nitish! As context please could you share a bit about yourself and your role at First Data? Nitish shares four major trends that are transforming the way 1.2b consumers pay, as well as creating new opportunities in merchant-to-merchant payments potentially worth over $20b. In this exclusive interview, we touch on key changes that could transform the card industry, and discuss a broad range of topics including E-tailing, Modern Retail, POS and the advent of mobile payments. Today we are with Nitish Asthana of First Data, who provides insights on the fast moving payments scene in India, at this historic stage in the move towards non-cash payments.
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