India wants to implement cashless infrastructure by 2021
In May, the Reserve Bank of India (RBI) outlined a new strategy to accelerate the country’s transformation into a cashless economy. India has long been on a trajectory towards going cash-free, with governmental and banking authorities touting the manifold benefits it could bring, such as infallible electronic paper trails and lower incidents of tax evasion. The document released describes how the RBI plans to “provide safe, secure, accessible and affordable e-payment systems” and RBI said it will implement them between 2019 and 2021.
In the first quarter of 2019, cashless transaction providers in Dominion’s Global Trends Ecommerce Fund saw stellar performance
Source: Yahoo Finance
The RBI said that the number of cashless transactions could increase by more-than a factor of four to December 2021, with cashless payment systems it implements could see average annual growth of more-than 100%. This, according to RBI, is a net positive, as cash is expensive to the Indian economy – and many of those expenses end up passed on to consumers. Explaining the value of implementing the number of different payment systems it outlined, the bank wrote: “Giving them multiple options is expected to make this experience exceptional, apart from furthering growth measurable in terms of digital payments turnover to GDP.”
The move towards a cashless society is a worldwide phenomenon. India is making incredible headway in that direction, but so is Sweden (and Scandinavia more generally), China, the United Kingdom, and others. As this phenomenon continues to pick up pace, companies like Visa, Mastercard, PayPal and more are set to reap the rewards that a cashless society has to offer.
Dominion holds Visa, Mastercard, PayPal, and other companies relevant to this trend in its Global Trends Ecommerce Fund.
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