Chennai 26, june 2016:Government has declared its intent to make all out efforts to impose restriction on use of cash in purchase transaction and in line of the same, the Government is contemplating to bring various Laws, Rules & Regulations to attain a cashless economy in India. On the other hand, the Government is also planing to provide concessions in taxes and other relief on use of Debit/Credit Card and internet banking. On the stage back wall one flex were displayed with new slogan ‘Master Your Card, A Community empowerment program brought to you by MasterCard.
In the wake of rising competition from RuPay. India’s home-grown e-payment facilitator payment solutions major MasterCard has sought a “level playing field” here.
In this context to educate the trading fraternity, Micro, Small and Medium enterprises and Traders in India to move on to an electronic payment system and adapt them to the rapidly changing digital payment landscape. MasterCard is focussing on innovation and advanced technology with better security features.
Ravi Aurora, senior vice-president and group head, Public Policy, Community Outreach, Law and Franchise Integrity (LFI), MasterCard, agrees that electronic payments systems have not penetrated the small business segment. Large businesses are investing in technology and if small businesses do not do it, they will be left behind, Aurora said. Cash has a cost to it, so it is not free, but cards and e-payments provide the cheapest, safest and quickest way for businesses to make and receive payments.
It is seen that businesses grow significantly when these payment options are provided and traders will benefit through the growth of their business, he said. Traders are now under pressure to upgrade. They have started losing out customers, especially in the 18-to-30 years age group, who walk into the shop but do not buy, as the shops do not accept card payments, so they are being forced to adopt it, , Aurora said.
The campaign has been moving across the country for a month now. MSME (micro, small & medium enterprises) hopes to reach out to 5,000 trade association and federations and touch 1 crore traders with this programme. “Currently, under 5% of the establishments offer customers facilities to swipe debit and credit cards, while for 94% of traders, it is an all-cash business, either out of ignorance or reluctance to offer electronic payment options.
“It is great that the government is opening up the market… But the market should be driven by competition,” He futher said that in a way the “government has become competition”.
The conference have focused on the Indian development by Internet. They have said that 80+ Cr internet and mobile users will fuel digitization potential. 58 000 Cr e-commerce growth will be increased by 2016 in India. we don’t want to fight with digital system we interested to use modern e-commerce system. Electronic payment in digital form he added.
Key sentence was their from the theater that is ‘Cashless market’. ‘Electronic Payments enabling digital India. Young India-Growing India. Future of India. people needs financial access. MasterCard connect to Govt, connect to Merchant. MasterCard to much prevented to India. Conference focused on above issues.
“We are happy to have a competitor but it sometimes becomes a concern when the competitor becomes the regulator…am sure that’s a challenge for anybody. When you allow international networks to come into the play, you are bringing a lot more opportunities,” he added.
In order to take on competition, MasterCard is focussing on innovation and advanced technology with better security features.
According to Aurora, over 10 per cent of the company’s global workforce of 11,000 comes from India.
They have
tied up with an indigenous e-commerce portal ‘E-lala’ to promote usage of credit cards. E-lala is promoted by the Confederation of All India Traders.
MasterCard is also looking at tie-ups with various State Governments. It recently signed a memorandum of understanding with the Gujarat Government for strategic cooperation to accelerate the adoption of electronic payment processes in government, businesses, and transit and tourism industry.
