Considering the advent of advanced technology and the kind of disruption taking place in the digital payments space, it wouldn’t come as a surprise if Point of Sale (POS) and Automated Teller Machine (ATM) cards become redundant in a few years. NITI Aayog Chief Executive Officer (CEO) Amitabh Kant mentioned the same in a session organized as a part of the Youth Pravasi Bharatiya Divas. He also said that the country could use such state-of-the-art technology to fight various issues across areas like health, education, and many others.
Post the note ban, most people have moved to cashless transactions and are using technology for the same. Growing at a pace of 7.5 percent per annum, India is going through a huge disruption in the world of technology and finance in terms of social innovation. It is a country where 72 percent population is below the age of 32, which will give it an advantage over other regions like the United States (US) and Europe in terms of the demographic dividend.
Technology to take over credit cards
Technology is a driving force in the growth of the country. With startups turning into job creators, the Gross Domestic Product (GDP) of the country will improve and the users will swiftly move from a credit card or a debit card to using technology for making payments.
Earlier, the number of cash transactions was higher. But the increasing penetration of smartphones across the country, entry of a number of banking and non-banking institutions that offer payment services, the willingness of consumers to adopt digital payment, and the progressive changes across the regulatory framework are driving this revolution across the country.
Even now, the use of plastic money is quite prevalent. But as per market predictions, a debit/credit card, as well as ATMs, will become redundant in the next three to four years. There are various applications like Paytm, Mobikwik, BHIM, Kaypay, and Oxigen that allow individuals to pay and receive money with ease. With digitization taking the country by a storm, people will be using their mobile phones more for financial transactions and this trend is already rising significantly.
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Apart from this, convenience is also an important factor, which is driving the growth of digital payments. There is a reliable speed of transaction that saves time and reduces efforts. Moreover, there is already a surge in the number of downloads of mobile payment applications that allow users to take advantage of discounts and cashback offers. Smartphones have become ubiquitous and there is a steep rise in transactions that happen mobile to mobile. Mobile wallets have already surpassed mobile banking, which shows the increased acceptance of digital payments and wallets by users.
The growing awareness and acceptance of digital payments will drive the country towards a cashless economy and the use of plastic cards will decline. Soon, individuals will prefer carrying their wallets on their smartphones, which will make transactions quicker and easier.