Get All Access for $5/mo

The Party For Digital Payment Wallets' Companies Has Begun Early, Thanks to Modi! Cashless future is here, and Narendra Modi has given a Diwali bonus to fintech companies.

By Aashika Jain

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock

Narendra Modi's surprise move to demonetize Rs 500 and Rs 1000 notes may have left businessmen shaken and many distraught, but one sector is certainly rejoicing.

Financial technology companies, who never thought this golden opportunity will fall their way, could experience no better time to be in business.

Cashless future is here, and Narendra Modi has given a Diwali bonus to fintech companies.

From Vijay Shekhar Sharma-backed Paytm, which is to launch its bank soon, to Kunal Shah's Freecharge, all fintech companies rose to the occasion and are aggressively campaigning to take advantage of the opportunity.

Kunal Shah, the founder of Freecharge hailed Narendra Modi's bold step and told Entrepreneur India that the move is a great step towards a responsible and corruption-free nation.

"Barring the short-term pains, this move will only do good to the nation. Bravo Modi!," Shah said.

Companies are organizing vigorous tie ups with customers from all genres – from subziwalas to taxi-hailing apps – to expand business tie-ups.

With its tagline, Ab ATM Nahi, #Paytm Karo!, India's largest mobile wallet company jumped on the opportunity to declare its platform saw a 435% increase in overall traffic as millions of consumers across India have taken to using their Paytm Wallets to transact offline.

"This is the biggest and most ambitious step ever to crack down on black money and fake currency. We stand by the government in its efforts towards taking black money out of the equation and offering a major boost to the Indian economy," Paytm CFO Madhur Deora said in a press release.

A digital wallet refers to an electronic device that allows an individual to make electronic commerce transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store. An individual's bank account can also be linked to the digital wallet.

By the use of mobile wallets, customers can virtually pay using a smartphone just by scanning their QR code or entering their mobile number.

Narendra Modi's vision for a Digital India has grown wings overnight with the demonetization of INR 500 and INR 1000 currency notes.

Indians are now expected to use digital payments system for services starting from utility payments to payments at grocery outlets, food and beverage stores, local tea/vegetable vendors.

Another popular payment wallet MobiKwik said it registered a 40 percent growth in app downloads within 18 hours of Rs. 500 & Rs. 1000 notes pullout.

"Yesterday, was a landmark day for the digital payments industry. Given the bold steps by the government, the industry is now poised to become one of the largest contributors to the Indian economy and drive a cashless revolution," co-founder of MobiKwik said.

MobiKwik counts merchants including Big Bazaar, Big Basket, Grofers, Ezone, Dominos, Croma among its partners.

How many other players will this move attract remains to be seen. For now, we can say – Cashless future is here and here to stay.

Aashika Jain

Entrepreneur Staff

Former Associate Editor, Entrepreneur India

Journalist in the making since 2006! My fastest fingers have worked for India's business news channel CNBC-TV18, global news wire Thomson Reuters, the digital arm of India’s biggest newspaper The Economic Times and Entrepreneur India as the Digital Head. 
News and Trends

Tech Burner's Anarc Smartwatch Achieves INR 3 Cr Sales with USD 1 Mn Investment

Anarc features a patented octagonal design by Thought Over Design and Seymourpowell, with a medical-grade stainless steel body. It includes advanced technology like a Hisilicon chipset, AMOLED display, and seven-day battery life.

Starting a Business

He Started a Business That Surpassed $100 Million in Under 3 Years: 'Consistent Revenue Right Out of the Gate'

Ryan Close, founder and CEO of Bartesian, had run a few small businesses on the side — but none of them excited him as much as the idea for a home cocktail machine.

Diversity

5 Ways You Can Create a More Inclusive Workplace Immediately -- and Why You Should

The more diversity you bring to your team, the greater your chances of finding groundbreaking insights and solutions.

Marketing

4 Neuromarketing Hacks to Reach More People and Maximize Results

You don't need to be a neuroscientist or have a big budget to start upping your conversions immediately.

News and Trends

Insurtech Player Zopper Raises $25M in Series D Funding

With 40 insurance companies and 2500+ ecosystem players, Zopper will utilize the fresh capital to ramp up digital infrastructure, by strengthening its Insurance Distribution platform

Business News

'Do You Sell Cars?': Tesla CEO Elon Musk Trolls Jaguar Rebrand on X

The team running Jaguar's X account was working hard on social media this week.