homefinance NewsIndia is setting a precedent and acting as a playbook for future of digital payments worldwide: Visa
India is setting a precedent and acting as a playbook for future of digital payments worldwide: Visa
Ghosh paints a picture of exciting times for Visa in India, emphasizing not only the robust growth in digital payments but also the increased focus on security and trust. The Indian market, as per Ghosh, is leading the way in shaping the future of digital payments, making it a beacon for other nations to follow suit.
India is setting a global precedent and acting as a playbook for the future of digital payments worldwide, said Sandeep Ghosh, the Country Manager for India at Visa. He was speaking with CNBC-TV18 at the yellow carpet EY Entrepreneur of the Year Awards on Friday, February 23.
Ghosh emphasised the core of Visa's business, which revolves around digital payments, and expressed enthusiasm about the robust growth observed in the marketplace. The migration of individuals and businesses from traditional cash transactions to digital forms of payment is viewed as a substantial positive for Visa's operations in India.
Visa, a global leader in payment technology, has been closely monitoring the changing trends in India, a market that is experiencing a significant transition from cash to digital payments. The proactive role of the Indian government and regulators is highlighted as a key factor in driving this transformation.
Despite this notable shift, Ghosh highlighted a crucial aspect of the Indian economy—it is still predominantly a cash-based system, with approximately 65% of transactions conducted in cash.
However, he projects a substantial change on the horizon, estimating that a staggering $600-700 billion in cash payments will migrate to digital platforms over the next three years. This projection underlines the immense potential and opportunities for growth in the Indian digital payment sector.
Ghosh identifies the Unified Payments Interface (UPI) as a driving force behind this digital revolution, acknowledging its pivotal role in the impressive growth of digital transactions.
Furthermore, he points out that traditional card-based payments have also experienced a healthy growth rate, showcasing the multi-faceted nature of the digital payment transformation in India.
Ghosh applauds India for being among the first countries globally to make tokenisation mandatory, a measure that enhances the security of digital transactions, thereby fostering greater trust in the payment ecosystem.
(Edited by : Ajay Vaishnav)
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