Good days have come for Online Wallet startups. PM Narendra Modi’s “Kaala Dhan” removing program hit off yesterday night as soon as he gave his statement to the nation. With Rs 500 and Rs 1000 notes being seized people are forced to do cashless transactions or carry tons of Rs 100 notes where ever they go. This will enable users to adopt online mobile wallets more than ever.
Rs 500 and Rs 2000 notes will be introduced and they would be controlled by RBI to stop rebirth of black money in India. Recently Tracxn gave a report that online wallet startups are the most acquired in 2016. This trend in India will continue as there will be more demand for this sector. Not sure when the government will reintroduce the new notes, and not sure how much cash withdrawal is allowed. Till these questions are answered, mobile wallets will have good business.
One might ask that credit cards and debit cards can also be used instead of mobile wallets. True it can be, but paying bills and transferring money is a lot faster with mobile wallets. Also with internet penetrating faster than ever, and government initiatives like Digital India acting as a catalyst, Online Wallets Industry will touch the sky.
Ashwani Rathore, CEO & Co-Founder of a tech startups, SpiderG, said, “This is a promising move made by our honorable Primer Minister towards cashless economy. This will boost innovation in the nascent electronic payment and electronic invoicing industry. It will create an awareness amongst the people of this country about paying taxes, filing taxes and joining the mainstream economy. With this move, we can expect more credit/debit card transactions, increase in digital payments, mobile payments and online banking which will push the vision of Digital India further. This will lay the foundation for a golden era in the ecosystem of Fintech startups which will reiterate the opportunities in India for developing electronic payment methods. GST launch along with this impeding will help to enhance traceability, which will be a key step towards strengthening the formal economy.”