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Home >Companies >People >Digital payments will be far cheaper than cash in future: Dilip Asbe, MD, NPCI

As the decade draws to a close, and with 2020 just days away, Mint has been inviting policymakers, thought leaders and heads of corporates to share five ideas that will impact the way we live in the coming decade. Dilip Asbe, MD & CEO, National Payments Corporation of India, tells Renu Yadav that lower rates of taxes on digital payments will improve adoption among customers and merchants.

CUSTOMERS WILL RANK APIs AS WE DO APPS

Blockchain allows for real-time settlements, reduces risk, and provides the possibility of regulatory oversight. If applied end-to-end from customer to institution, it can be used to build a “zero customer dispute" system. Supply of futuristic APIs by financial institutions will drive customer on-boarding, engagement and digital payments. Soon, the ranking of APIs may be based on customer usage, the way we rank apps today.

FOCUS ON CONSUMER AWARENESS

RBI has said a proposed online dispute resolution facility will help build consumer trust in digital payments. Users will be able to raise disputes anywhere, anytime, and most will be resolved real-time, without human intervention. Users will have to see awareness videos (in the choice of customer’s language) before registering on any payments platform. Such interventions will be mandatory for all services.

EMIs WILL BE OPTION FOR ALL PURCHASES

RBI recently permitted standing instructions (SI) on low-ticket transactions to promote subscription-based businesses. Digital on-boarding and seamless low-cost collections will boost subscription-based businesses and grow digital payments. Easy mon-thly installments (EMI) will be an inbuilt feature for any online or offline purchase, even small-ticket goods and services. This will drive consumption.

DIGITAL PAYMENTS CHEAPER THAN CASH

In future, it will be entirely possible to make digital payments cheaper than cash. One way to do this would be for the government to provide rebates on taxes, such as goods and services tax, to consumers, if they make these payments digitally. Instant gratification, by means of declaration of upfront lower rates for digital payments, will help send a positive signal to merchants and customers for better adoption.

USE QR CODES TO PASS ON INFORMATION

Innovative use of QR codes for information exchanges will facilitate growth of digital payments. Be it invoices, gifts, coupons, bills or collections, sharing them with customers via a QR code using messaging platforms and uploading in payment apps will reduce costs incurred by companies in printing, courier and collections.

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