FINO PayTech: Demonetization a positive move for payments bank and digital cash
The Economic Times:
Payments companies plan major digital payments push in rural hinterland
"Since banking operations are closed we have instructed our agents to not accept cash deposits for the next 2 to 3 days as a lot of people might try to exchange their old notes for 100 denomination notes and we might end up facing a shortage as there could be supply crunch," said Rishi Gupta, managing director of Fino Paytech.
Demonetization to give major push to e-wallets, payments through UPI
“Now both high and small valued transactions will become equally important in the digital space,” said Rajeev Arora, COO of FINO Paytech, one of India’s biggest business correspondents which will soon start its payment bank operations.
Digital wallet players see big spike in usage
FINO: The government’s decision to restrict cash withdrawals from ATMs would definitely encourage people to use digital money.
Industry Reaction to Govt’s decision
FINO: This move will encourage the large segment who are unbanked and under-banked to join formal banking ecosystem.
Notes withdrawal: Move towards digital cash
FINO: Post the introduction of new notes too, there will be less availability of cash for customers prompting a shift to digital channels for making payments. From this perspective, entities that are involved in electronic payments such as banks, wallets and card issuers, will benefit. Going forward, this will only get strengthened.
Industry hails PM’s demonetization move
FINO: As a payments bank, we see this is an extremely positive sign to reach out to these customers for deposit mobilization and investments in a regulated, transparent and safe environment. This will also lead to a surge in the usage of digital payment instruments instead of cash, which will be an encouraging development towards less cash economy and Digital India initiative.
Win-Win say digital payment companies
FINO: This development will definitely encourage the large unbanked and under-banked segment to join the formal banking ecosystem. This is an extremely positive sign to reach out to these customers for deposit mobilization and investments in a regulated environment. It is a matter of time before rural India too catches up.
FINO PayTech was chosen by UIDAI to demonstrate the tech enabled payment mechanism at the national launch of Aadhaar-based service delivery.