Achieving Pervasive Digitization: An Overview

There is no doubt that digital transactions are on an upswing in the country.

- Jose Thattil

However, despite the rising popularity of digital transactions, the segment is still grappling with numerous challenges.Some of these key challenges along with possible solutions necessary to achieve a successful and large scale digitization are discussed herewith:

1. Accessibility 

For a successful cashless economy, financial inclusion is imperative. The Pradhan Mantri Jan Dhan Yojana is one such successful step which has created 18.15 crore bank accounts in rural/semi-urban areas and 12.7 crore in urban geographies, adding 23.27 crore RuPay debit cards to the cashless ecosystem. Further, UPI and Bharat QR scan & pay instruments have simplified cashless transactions and made it accessible for the rural and marginalized income groups with lower literacy rates.

While these are encouraging initiatives, there still remains a large divide in the cashless instruments and the available infrastructure to use them. For e.g. there are currently over 830 million debit card users in the country with only 2.9 million POS terminals, where these can be swiped. Similarly, while UPI and QR code operated asset light instruments is expected to reach 1.5 million users by March 2018, there are currently only 7 lakh shops or POS terminals where these can be accepted.Matching the rise in digital payments instruments with accessible payment infrastructure is a vital challenge that needs immediate attention.

2. Digital Literacy 

With the second largest population of internet users in the world, India is an active digital player when it comes to entertainment, social networking, communication, online shopping etc.