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July - 2014 - issue > CEO Viewpoint

MOBILE AND CASH CONNECTION

Ravi Jagannathan, Managing Director & CEO, Y-Cash Software Solutions
Wednesday, July 2, 2014
Ravi Jagannathan, Managing Director & CEO, Y-Cash Software Solutions
Founded in 2011, Y-Cash Software Solutions is a provider of payment solutions using mobile technology, as a RBI Authorized Mobile Pre-Paid Wallet issuer.

Mobility in India - An evolving landscape

Globally, when almost every second person had access to telephone, less than 5 percent of the Indian population had access to telephone. But when communication technology advanced, India crossed the copper wires and the adoption of mobile phones leapfrogged, making India the frontrunner in the list of mobile density countries. Non-cash payment situation is similar to telecommunication adoption; a large portion of the day to day transactions in 1.2 billion populated India are done using "cash" which is in stark contrast to other developing and developed nations.

Similar to the telecom industry, the shift in adoption of non-cash payment is obvious in India but delayed though. Having said that, made for India innovative solutions, regulator's support, growing youth population, inflation that lead to a need for carrying higher denominations of cash and others are clear indications of India's mobile payment to grow leaps and bound to make India as a cash lite economy.

In this modern era, mobile has become the fourth basic necessity after food, clothing and shelter. In the recent past, the usage of a mobile device has gone beyond its basic purpose of talking and messaging. Using the mobile for making a payment has no barriers but changing the behavior of the users takes some time. Reserve Bank of India's report says that annually over Rs.80 billion worth of transactions are already happening via mobiles. The user is comfortable when the cash stored is managed through an App that is totally under the user's control. There are over a dozen active mobile wallet providers in India - Airtel Money, ItzCash, Money on Mobile, Paytm, Ypaycash to name a few. With already existing payment networks that have great penetration throughout India, the mobile payment ecosystem in India is one that could accommodate major growth in the next year or so.


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