Reserve Bank of India (RBI) recently (07 August, 2020) announced the pilot for offline payments using cards/wallets/mobile devices i.e. payments that can be conducted without the need of any mobile network or digital infrastructure in place. This circular was issued in the wake of poor or lack of internet connectivity in rural areas. This lack of connectivity is becoming impediment to adoption of digital financial services by masses.
With vast majority of India’s population living in rural areas (approximately 65% as per Statistics Times), this become all the more important for providing affordable access to financial services and bring rural masses under financial inclusion.
India’s Digital Payments Market is expected to grow to US $1 Trillion By 2023 (source: Digital Payment: Trends, Issues and Opportunities report by Niti Aayog). The sheer size of the digital payments market in India provides an opportunity for payment service providers to offer digital payment solutions for masses and offline payments being recognized as key drivers of growth in payments. This growth is only hampered by the lack of digital infrastructure in rural areas.
Even with the strong growth rate of 18% of internet access in rural market, still there is enough headroom for growth as close to 70% of rural population does not access internet (Source: Report by the Internet & Mobile Association of India & Nielson).
Digital micro-payments have the power to transform the lives of micro-merchants as with digital trail available for their daily transactions leads to a build-up of formal credit history (which was missing until now as they were transacting in cash) which ultimately helps them get cheaper formal credit.
PaySe™ can enable banking access to citizens at bottom of pyramid with lack of digital infrastructure while building credit history for these masses. Rural people can make micro payments in completely offline mode without the need of any additional factor of authentication. PaySe with it state of the art offline payment solution can wire rural India.
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