India – Visa eyes big bucks from ‘contactless payments’

By | May 28, 2017

MUMBAI:  Global payments technology company Visa is bullish on the Indian market to grow its contactless payment solutions.The company, which recently launched the country’s first open loop contactless toll payments at NHAI’s Manesar toll plaza, expects an increase in adoption from sectors like retail.

“We are likely to witness a major shift in technology migrating from plastic cards into new form factors including mobile devices, wearables, stickers, mass transit systems and other domains,” told T R Ramachandran, Country Manager, India, Visa Group Express.

According to McKinsey estimate, digital banking users will be around 450 million by 2020. Currently, over 4.5 lakh Visa payWave terminals exist in the country including at merchant places like Big Bazaar, More, Bata, Star Bucks, Domino’s etc.

“The contactless technology is the most relevant payment option in the busy retail scenarios like quick service restaurants, metros, etc,” he added.Contactless payments is considered the future of digital payments, as it reduces queuing and ensures faster movement. Over the past seven years, contactless payments have grown in Australia, Taiwan, New Zealand, Singapore and Hong Kong.

For instance, in Australia, over 60 per cent of all face-to-face domestic Visa transactions are contactless. On its use at toll plazas, Ramachandran said, it encourages r cash replacement, and creates a hassle-free experience for riders.

In the next 20 years, India’s roads will need to accommodate an economy that will both be substantially larger, and structurally different in economic, social and demographic terms.
Totaling 76,818 km or 1.9 per cent of the total road network as of March, 2012, about 40 per cent of road traffic plies on the national highways.

Source: The New Indian Express