Tuesday, October 05, 2010

Towards Financial Inclusion

India has been sleeping for long, but not anymore. One initiative after the other leads to one conclusion, that India is yearning to leapfrog the world leaders.

The latest initiative is the new system in place that allows free funds transfers. (Although a couple of us already knew about it through the discussion with Viral from UID office). National Payments Corporation of India(NPCI) is leading this initiative which will enable 24-hours payment system
allowing free remittance to any account across India.

We know about a couple of mobile fund transfer facilties functional around the world:
- M-paisa in Kenya
- Wizit in South Africa
- Smart Cash in Philippines
- Intra-bank in US and UK

How does this differ from the present payment gateways?
The system in place will work in collaboration with banks and telecom companies. This will not tie up the systems with any banks or telecom operators, hence giving it the required flexilbilty to scale up. Seconly, it will be free to use ulike the Visas.

What will happen to the Visas and Master cards?
Time will tell!

What do you all think?
I am waiting to hear.

(http://www.livemint.com/2010/10/03194721/New-system-that-allows-free-fu.html?atype=tp)

3 comments:

  1. Anonymous5:05 AM

    Have you considered the fact that this might work another way? I am wondering if anyone else has come across something
    exactly the same in the past? Let me know your thoughts...

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  2. Vijender12:22 PM

    Visa and Mastercard are already on the brink of another phase in paymemt evolution with strong challenge from mobile phone as payment cards through NFC. Wonder if they can revolutionize and align the business model and organization with an altogether new direction.

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  3. I think this will be sort of like a wild goose chase. After 5 years we will be able to say Player X did "this" right because of which it is the most successful. But the game right now is very open. Therfore, even the best of the strategists are waiting and watching (although a lot of action is already taking place!).

    ReplyDelete