How to build a cashless society? Give people no other choice | CNBC Reports

You walk around Delhi and you find signs for these digital payment platforms everywhere. Paytm, Samsung, Mobikwik, just to name.

You walk around Delhi and you find signs for these digital payment platforms everywhere. Paytm, Samsung, Mobikwik, just to name a few. The number of digital transactions in India have quadrupled since November last year. Welcome news to a government on a mission to reduce India’s reliance on cash. The 500 rupee and 1,000 rupee currency notes presently in use will no longer be legal tender. Prime Minister Narendra Modi pulled nearly 90% of banknotes from circulation last year. “Demonetization” was supposed to crack down on corruption. The results there have been mixed. But one thing is clear: the historic shake up’s been a big boon to India’s digital economy. Business at digital payments company Paytm jumped more than 400% in the hours after that cash crunch. Its mobile-wallet app allowed users to shop at bakeries, electronics stores, even fruit stands, without bills changing hands. In just 8 months, the company managed to sign up more than 220 million people using Paytm at 5 million shops. Just before demonetization, which was in November 2016, we had 700,000 merchants. Post demonetization, we upped it and then we started signing up to 40 to 50,000 merchants every day. 40 to 50,000? Thousand merchants every day. That surge in growth’s helped Paytm go beyond the digital payments space. It’s expanded its e-commerce business. It’s offering loans and banking. You can even buy gold through Paytm’s “digital gold service” which allows users to buy and sell the precious metal and store them digitally, in a government certified vault. The company sold 50 kilograms of gold in its first month, making Paytm India’s largest jeweler, Everyone in India saves using gold. If they save, they save using gold. So we want to offer digital gold as a product which is available to everyone, that everybody understands. Big name investors have already come calling. Alibaba and Softbank invested more than $2 billion combined. Making Paytm one of only a handful of Indian tech unicorns. But Paytm faces new competition from traditional banks who’ve developed their own digital payments platform. India also has a national ID system called Aadhar that registers people using biometrics. The government assigns an ID number attached to those biometrics and stores the information in a centralized database so people here don’t have to carry a physical ID. So, if you want to buy a SIM card, basically you take it here. The smartphone scans the bar code. Put your thumbprint on this machine, and it’s done. Aadhar isn’t widely used by shops just yet but the government’s registered more than 1 billion people or 95% of the population so far, making it the world’s largest biometric ID system. So can this push to go digital actually lead to a “Cashless India”? What do you think, can India really go cashless? Well cash less. There will be less cash, right. It won’t be zero cash, almost no economy in the world is. In fact, a lot of the cash has already returned to the system and the Central Bank in India is planning to issue new lower denominated bills. That doesn’t mean the government is backing off of those cashless dreams. It’s set out to process 25 billion digital transactions this year, part of a larger goal to transform India into a trillion dollar digital economy by 2022.

100 thoughts on “How to build a cashless society? Give people no other choice | CNBC Reports”

  1. I started using debit card for shopping.. I started using net banking..

    Now I book train tickets bus tickets,movie tickets online only.. I don't have to waste hours to stand in a line..

    We should expand digital banking

  2. Poverty has increased as well as unemployment in India.
    And Aadhar data is sold online anybody can Buy Indian’s data.

  3. Market % of RuPay&Bheem app before Demonetisation was 0.7% and after Demonstration it % increase to 51%
    Visa/Mastercard % in India:
    Before demonetisation 67-82%
    But after demonetisation .. its % decrease to 45%?
    That's why American company blaming to Modi

  4. Chinese people are sayin copy of alipay and wechat….. They don't know how paytm works…. They just see QR code scanning and say copy copy……. Paytm offers tones of payment mode….. And has more options to do online money transfer like adhar card, bhim UPI, NFC enabled payment etc….

  5. China doesn't give a shit about intellectual Property and patents rights and "copycats" comments coming from Chinese are a bit odd considering they blatantly copy/reverse engineer everything from military tech to something as simple and basic as wallets and shoes. Don't preach if you can't follow your own teachings. By that logic Alipay copied Paypal.

  6. "The beast (antichrist) will cause everyone, both small and great, both rich and poor, both free and slave, to be marked on the right hand or the forehead, so that no one can buy or sell unless he has the mark, that is, the name of the beast or the number of his name "
    The Bible – Revelation 13:16‭-‬17

  7. Is it just me or are there others who DO see people bashing the Chinese for trash talking but don't really find any Chinese comments actually trolling Indians??

  8. Lol…… First Make toilet for country people second try to eliminate poverty… After that you can think about cash less india…one thing left..let's be human not typical racists people.

  9. China, who copies each and every feature of technologies being released all over the world. Whether machines or smartphones, they copied Russian missiles. They are calling us copy cats lmao ?

  10. How can these Chinese people be so stupid for commenting all the trash as your country is based on copying every thing which US invents. If you think India has copied what about thing that your country has copied like YouTube, Facebook, Instagram, whatsapp, Uber, eBay, most of your mobile phone designs and list go on and on…
    India software development sector is 10 times bigger than yours and it's not based on copying even your mobile phone companies get there software from here as your people is incapable of producing a quality code.

  11. Right, give people not other choice and people have to go cashless. And on other hand some of the retailers do not accept cashless transactions. Also those who accept it have issues with the internet.

  12. I still love using cash. It's fast and easy. In less than 30 seconds you are done. There's no problem of slow Internet, failed transactions and the worry which comes as an add on pack till the money is credited back and added to that you will have to pay transaction charges.

  13. And this is supposed to be the mark of the beast app on your phone and people getting their fingerprint scanned so they don't have to carry around an ID

  14. It's the biggest scam in India. People are forced to rely on one private player company who is clearly one of the biggest donors for the ruling party. All other digital currencies are forced off the market or taxes imposed. Majority of the population is affected and has reduced money rolling among the small scale business of the country. All in the name of election funds. So many small scale industry destroyed. Noone wants to help PayTM , but are forced into. That my friend, is not democracy.

  15. alibaba helped build this company in india. alibaba used their existing infrastructure. there is no copying. it's Chinese to begin with.

  16. If Philippines can only adapt through a cashless society then corruption may then be avoided. Sadly is that, some banks here dont recognize PayPal as an online payment transaction service…Jurassic period truly exists today…

  17. My thoughts on this topic – How India to proceed towards Cashless economy? @

  18. The cashless society is a big step to totalitarianism. You can then be monitored by the government and a few big payment companies.

  19. Vijay Shekhar Sharma was invited to AliPay conference in Hong Kong back to 2012, also PayTM's first two rounds of investment are from Ant Financial(AliPay).

  20. I just scrolled down a few paces and why is nobody seeing the real problem here? Going cashless is a bad idea. It is only a way to let big biznesses and government as well as independent corporations to take more of a strangle hold on average peoples finances. Every transaction you make is recorded and seen! Their is 0 absolutely no privacy with a cashless society there is literally no privacy at all. You have no privacy in regards to what you spend your own money on and that is wrong. This will lead to a world financial collapse far worse that the crash of 1929 mark my words and even if it does not it will lead to world domination of individual finances and property by big corporations and government and keep you poor wile increasing their already swollen moneybags or in this case pits of shitty metal and plastic, and all of you are happy to play into it like stupid lambs to the slaughter Honestly wake up and use cash if you cair about your rightful privacy and independence.

  21. The gold thing is bullshit the us government confiscated it from its people in the past the whole reason I’d buy gold is for security keeping my gold at a bank is just asking to get it stolen

  22. If you want any countries rise economically, repeat Chinese mobile phone system attached to money system; replace all money with mobile phones and stored money in/through the mobile phones and mobile phone system and you boost your countries growth exponentially!!!!

  23. Here I see Chinese are jealous with Paytm
    I give one information to bloody mother fucking Paytm is totally different than Chinese app

  24. CANADA BEGINS USING A 'PRE-CRIME' TRACKING SYSTEM: Canada’s Risk-driven Tracking Database allows for the ‘hospitalization or arrest’ of ‘some individuals’ when the AI determines that to be needed. All before any crime has been committed. Yes, you read that correctly. People will be detained before a crime has been committed. First China…now Canada…who will be next?

  25. At the press of a button the government can take or seize all your money

  26. Will AI manage the digital numbers? All our info? Humm… now if someone nefarious got a hold of this technology. Each person having there own number, so they know where we live, who we are, income, pass words, mental and medical issues could be used against us. It eventually would be easy to assign numbers to people, and so you don’t lose that card, how about we put it on your had. Revelation chapter 6. Can’t buy or sell without a mark, a number or a name? Rt hand or forehead.

  27. I think it's convenient to carry a card or something vs cash, but I'm thinking about those that are unemployed or have no bank account. Without cash, and the access to technology, how will those people survive without cash ? Also, what if the grid goes down? How many people have cash, on hand, right ! I say, 1st, find a solution to society's ills first! Then move to a cashless society.

  28. for paytm to work in need bank account, 4g mobile and INTERNET . but for the cash nothing is required except for the job to earn.

  29. If this was introduced in America. A lot of hookers, strippers, beggars and groups that take donations on street corners would suffer. Lol

  30. Campaign to make a cashless society is a way to control strictly the common man’s money. They know what exactly everyone is doing and under their free will increase or decrease charges. If they hate you or dislike you, they can freeze your account even if you want to buy a water bottle. Anyone can hack and make everyone’s money disappear. It’s very unsafe. Just like how banks go bust by using our money to make risky investments, that same
    Way all our money can disappear without our choice or permission.


  32. There is nothing great of being cashless, once there is no cash, it will be easy for the government to fck citizens over.

  33. AND how are kids going to buy food and what if they want treats candy chip whatever.. no little kid getoutahear go open a bank account and buy a phone wtf

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