Visa takes egalitarian approach to India: mass market solutions
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Visa takes egalitarian approach to India: mass market solutions

According to Visa’s group country manager in India, the company is taking an egalitarian approach to digital transactions in the country. T. R. Ramachandran said that Visa would be focusing on the “low-ticket and high-volume” market, rather than catering to just rich Indians. He also said that the company is positive about the “interoperability with the prepaid payment instruments there” as its network could act as a “bridge to facilitate” the services across the country.

Visa’s share price has risen by 35% so far this year


SOURCE: Yahoo Finance

India is becoming increasingly viable as the “second market” for digital payment providers, and companies like PayPal and MasterCard have recently expressed more interest in the country. Unsurprisingly, the big Ecommerce giants are also increasing the attention they pay to India, with Amazon and Alibaba gearing up to fight for market share there.

India’s Ecommerce sector has advanced dramatically in the past few years, stimulated in part by the government, which wants to move the country towards a cashless economy, and providers like Visa and PayPal, which are in a position to bring previously inaccessible payment services to underserved members of the public. However, the country still lags far behind China in this regard.

The World Payments Report 2017 from Capgemini and BNP Paribas says that India’s digital transactions are expected to grow at a rate of 26.2% through to 2020, which China’s will grow by 36%. This growth is also predicated on very different starting positions: in 2015, China saw 38.1 billion transactions – India saw just 4.5 billion. However, as both countries demographics evolve over the coming decades, and India’s population overtakes China, that gap will likely close.

Speaking about Visa’s approach to the region, Ramachandran said: “The larger opportunity given where India is in terms of digital payment penetration is in the nondiscretionary segments. Massification of digital is the thrust area. Affluent (segment) and credit cards are always there. You can make a tweak here, a tweak there. I am not saying that is not important.”


Dominion holds Visa (and all the other companies mentioned in this article) in its Global Trends Ecommerce Fund.

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