Pramod somehow caught hold of Genie, managed to make Genie run at the high speed that was expected of him. Genie as usual started narrating a story. He started with a question, “Pramod, you always claim that you know a few things in digital world. Tell me who is going to be the Numero Uno (the best or most important country) in day to day digital transactions? US of A, China (中国), Japan (日本) or Good old India?” Pramod knew that if he uttered a word, Genie would slip out of his control and system will hang! So Pramod did not give any reply to the question asked.
As usual, Genie kept on talking. Genie said, Pramod now that we have had a decade and half of digital revolution (a la Industrial Revolution) who do you think will be the leader by 2030 in day to day transactions! Even as early as in next five/ six years the clear winner maybe seen; do you want to say something about it, Pramod? Genie was hoping to trap Pramod into talking but Pramod just smiled. Genie as usual kept on blabbering.
Pramod, I feel it is going to be India! Come on, don’t believe in me. Let me share some information with you. Last year along with demonetization, Indian Government started digitalization drive. This gave impetus to digital way of doing transactions and payments. Even some small time vegetable vendors, fruit merchants started accepting money in new format. You obviously don’t go to market with your laptop, so the obvious solution was using cell phones. Suddenly, many apps started coming into picture. I am giving you information based data available today.
There are two methods of transferring money from A to B. Bank to bank transfer (the best method for this is created by Government is known as UPI, (Unified Payment Interface) and Wallets by private parties and banks. Basic difference is that in UPI your money remains with you in your bank account till you transfer it. Whereas in Wallets, you have to transfer the money in Wallets from you bank account for further use.
Let me start with UPI; Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions. The interface is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a mobile platform.
“UPI is built over Immediate Payment Service (IMPS) for transferring funds. Being a digital payment system, it is available 24*7 and across public holidays. It uses Virtual Payment Address (a unique ID provided by the bank), Account Number with IFS Code, Mobile Number with MMID (Mobile Money Identifier), Aadhaar Number, or a one-time use Virtual ID. An MPIN (Mobile banking Personal Identification number) is required to confirm each payment.”
Pramod, many banks are now using UPI but again the Government is also equally serious and has come up with an App called BHIM. BHIM (Bharat Interface for Money) is a mobile app developed by National Payments Corporation of India (NPCI), based on the Unified Payment Interface (UPI). The app supports all Indian banks which use that platform.
All banks have their own apps but Pramod you will realize that it is a seriously big business and Google has jumped into fray with an App called TEZ (fast and furious!) based on UPI. It cannot get any more serious than Google making app only for India.
Pramod, Wallet is another option which transfers money in two ways. One is Wallet to Wallet and second is Wallet to bank. Wallet to Wallet transactions have the limitation that both parties should have same Wallet. Wallet to bank is a normal transaction. But how does money come in the Wallet in the first place? It come through credit cards and through Bank transfers! Wallets have started using UPI too! Wallets are apps by private companies like PayTm which is currently the most famous amongst the wallets.
Pramod, which one will you prefer? Many banks have their own apps. BHIM UPI has ease of use as your account can be from any bank, your UPI id can be 1234567890@upi where digits are your cell number! Easy, isn’t it? Current authentications are MPIN number, but this authentication can be easily replaced by biometric authentication? Aadhar anyone? Of course! In Wallets I will currently prefer PayTm. It is backed by Alibaba in a big way, so theoretically should be around for a long time. It has facility for UPI too! Another interesting feature they have started is Chat! While chatting with someone you can get or transfer some money from the Partner. Another reason it is my favourite is that Uber account is linked to it and for extensive user like me, money gets automatically debited to PayTm!
Pramod, don’t you think that entry of Jio in cell phone service providers is a game changer? Their low-cost cell phones are offering most facilities provided by expensive cell phones; this will also play a major role in proliferation of digital transactions. Credit cards are looked at by many as elite tool; so for users who do not spend large amount in month, credit period offered by card companies is of no use. So, cell phone is going to be Swiss Army Knife for us. Capable of doing everything and anything. Making calls, taking photos, chatting, video calls, financial transactions, sharing photos, chats, GPS the list is unending! Pramod, do you think that after say about ten years credit & debit cards will be relevant? Debit/Credit card needs investment from vendors but UPI and Wallets don’t need to have swiping machines!
Pramod, I want your reply on this as I know you have strong views! Pramod tried his best not to talk but Genie hustled him again with the same question! Pramod just could not keep quiet. He said, “Genie, with one billion cell phones and one billion biometrics data in the from Aadhar (which is the best authentication method), it is no brainer to say that India will be Numero Uno in day to day digital transactions over next ten yeas”
With this statement Pramod broke the golden rule of silence that Genie had locked him in. At that instant Genie slipped out of Pramod’s grasp, Genie’s speed became equivalent of 2 G and system hung! Genie could not help but make a passing remark before escaping. “Pramod my gut feeling tells me that it will be five years and not TEN!”