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Why Cash And Prepaid Cards Are A Security Threat

Both cash and prepaid cards ride on the convenience quotient only. However, the "secured" element of the transaction also needs to be given equal consideration -- the Paris attack and the Delhi heist should serve as a wakeup call to all stakeholders. Both avenues will have a 9/11 moment soon and legislation is bound to come in to control their usage. The Finance Ministry has already issued a paper talking about tax incentives for merchants accepting digital payments.

3 Ways To Dethrone King Cash

In stark contrast to the US or the UK where 50-70% of retail payments are electronic, in India that number is approximately 3%. Banks have made a conscious effort to encourage the adoption of electronic payments, but old habits die hard, and cash continues to remain king. So what can be done to change the pace of adoption? Below are three high-level areas, including some carrots and sticks, which I believe will move the needle in India.