Skip to main content

MastarCard study ranks India 41 of 42 countries, "beats" only Pakistan in digital payment despite noteban shock

Adoption of digital payments: 2017
By Rajiv Shah
A recent study, sponsored by MasterCard, one of the top American multinational financial services corporations, has said that, despite the “self-inflicting shock … by demonetizing its currency” a year ago, India beats just one country, the neighbouring Pakistan, in what it calls digital experience – a term used for identifying adoption for online transactions.
Carried out by the Fletcher School’s Institute for Business in the Global Context at the Tufts University, bringing this to light, the study ranks in all 60 countries countries’ regulatory, infrastructural, and identity- and interface “present in the digital environment, identifying the countries “by speed, quality, and ease of use when transacting online.”
However, from the 60 countries, it chooses 42 countries for ranking "digital experience."
Principal investigator of the study, Dr Bhaskar Chakravorti, senior associate dean of International Business and Finance at the Fletcher School, says, the lesson from the study is that “digital adoption will not be meaningful unless users can trust the infrastructure to reliably deliver”.
Chakravorti adds, “If your policy does not, simultaneously, improve the state of friction-freeness in the digital experience, do not plan on the technology delivering transformational change.”
Says Chakravorti, In India, “With the exception of the Unified Payments Interface, a payments system that facilitates instant fund transfers between bank accounts on mobile platforms, all other digital payments transactions have declined.”
He adds, “All things considered, this modest change in digital uptake could deliver over the longer term, but it is not clear why invalidating 86% of the country’s cash was necessary to promote a single payment platform.”
Chakravorti underlines, “The Indian experience also helps us explore the reasons why the adoption of digital payments did not accelerate as one might have expected after demonetization. The explanation relies on an understanding of factors that drive digital adoption.”
“The quality of the digital experience is one such factor. If nothing else changes in their environment and incentives, and users’ digital experiences are poor, they will go back to the predigital status quo”, he believes.
One of the criteria used for analyzing digital use experience, which primarily concerns use of online transaction, the study seeks to find the answer of “how do users experience the digital trust environment?”. It says, “India alternates between maintaining momentum and self-inflicting shocks to its system by demonetizing its currency”.
Pointing out that India, along with China, are two countries where “the digital economy has been given high priority by their policy makers”, the study says, “India, for its part, reframed a drastic policy move that demonetized 86 percent of its currency overnight”, which has created “the effect of nudging consumers and businesses towards digital payments … mixed results.”
In its broader Digital Evolution Index (DEI) analysis of 60 countries’ “underlying drivers” – Supply Conditions, Demand Conditions, Institutional Environment, and Innovation and Change – the study ranks India 53rd.
The top-ranking ten countries on the DEI score are Norway, Sweden, Switzerland, Denmark, Finland, Singapore, South Korea, UK, Hong Kong, and USA. India is one of the ten bottom countries along with Philippines, Kenya, Egypt, Nigeria, Pakistan, Algeria, Cameroon, Bolivia and Bangladesh.
All of India’s competitors in the BRICS nations rank much better – Brazil 46th, Russia 39th, China 36th, and South Africa 43rd.

Comments

TRENDING

India under Modi among top 10 autocratizing nations, on verge of 'losing' democracy status

By Rajiv Shah
A new report, prepared by a top Swedish institute studying liberal democracy, has observed that there has been a sharp “dive in press freedom along with increasing repression of civil society in India associated with the current Hindu-nationalist regime of Prime Minister Narendra Modi.” The report places India among the top 10 countries that “have autocratized the most”. Other countries that have been identified for rolling towards autocracy are -- Hungary, Turkey, Poland, Serbia, Brazil, Mali, Thailand, Nicaragua and Zambia.

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam*
RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

Border conflict? RBI nod India's 'brotherly' help to China internationalise its currency

By Bhabani Shankar Nayak*
In the middle of a global pandemic, China started an unprovoked border conflict with India. It unraveled trust deficit and ties between the two neighbours. As thousands of Chinese troops tried occupying Indian territory, the Narendra Modi-led BJP government directs the Reserve Bank of India (RBI) to allow the Bank of China to start regular banking services in India. The Bank of China will now operate in India like any other commercial banks.

RSS supremo Deoras 'supported' Emergency, but Indira, Sanjay Gandhi 'didn't respond'

By Shamsul Islam*
National Emergency was imposed on the country by then Prime Minister Indira Gandhi on June 25-26, 1975, and it lasted for 19 months. This period is considered as ''dark times' for Indian democratic polity. Indira Gandhi claimed that due to Jaiprakash Narayan's call to the armed forces to disobey the 'illegal' orders of Congress rulers had created a situation of anarchy and there was danger to the existence of Indian Republic so there was no alternative but to impose Emergency under article 352 of the Constitution.

Clean chit to British rulers, Muslim League? Karnataka to have Veer Savarkar flyovers

By Shamsul Islam*
The BJP government of Karnataka led by BS Yediyurappa is going to honour Hindutva icon VD Savarkar by naming two of the newly built major flyovers in Bangalore and Mangalore after him. There was a huge uproar against this decision of the RSS-BJP government as many pro-Kannada organisations with opposition parties and liberal-secular organizations questioned the logic to ignore so many freedom fighters, social reformers and others from within the state.

Hurried nod to Western Ghat projects: 16 lakh Goans' water security 'jeopardised'

Counterview Desk
Taking strong exception to "virtual clearances" to eco-sensitive projects in the Western Ghats, the National Alliance of People’s Movements (NAPM) in a statement has said urged for a review of the four-lane highway, 400 KV transmission line and double tracking of the railway line through the Bhagwan Mahavir Wildlife Sanctuary and Mollem National Park in Goa.

Letter to friends, mentors: Coming together of class, communal, corona viruses 'scary'

By Prof (Dr) Mansee Bal Bhargava*
COVID greetings from Ahmedabad to dear mentors and friends from around the world…
I hope you are keeping well and taking care of yourself besides caring for the people around you. I’m writing to learn how is the science and the society coping with the prevention and cure of the pandemic. I’m also writing to share the state of the corona virus that is further complicated with the long-standing class and communal viruses.

Disturbing signal? Reliance 'shifting focus' away from Indian petrochemical sector

By NS Venkataraman*
Reliance Industries Ltd (RIL), a large Indian company, has expanded and grown in a spectacular manner during the last few decades, like of which no industrial group in India has performed before. RIL is now involved in multi various activities relating to petroleum refineries, petrochemicals, oil and gas exploration, coal bed methane, life sciences, retail business, communication network, (Jio platform) media/entertainment etc.

Case for nationalising India's healthcare system amidst 'strong' private control

Counterview Desk
A draft discussion note, prepared by Dr Maya Valecha, a Gujarat-based gynecologist and activist, sent to the People's Union for Civil Liberties (PUCL) as also a large number of activists, academics and professionals as an email alert, is all set to create a flutter among policy experts for its strong insistence on nationalizing India’s healthcare system.