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

Lip-service on World Environment Day vs 'watered-down' eco-safeguards

By Shankar Sharma*  Just a few days ago, the world remembered the routinely forgotten global environment on the occasion of World Environment Day, briefly though, maybe just for the day. There were reports of a few high profile ceremonies in different parts of the country, including a few in New Delhi. Prime Minister Narendra Modi reportedly asked the people of our country to plant one tree per each person as a mark of respect/ gratitude for our mothers.

New Odia CM's tribal heritage 'sets him apart' from Hindutva Brahminical norms

By Bhabani Shankar Nayak*  Mohan Charan Majhi took the oath as the new Chief Minister of Odisha following the electoral defeat of the BJD led by Naveen Patnaik, who served as Chief Minister for twenty-four years. The new Chief Minister is the son of a security guard and a four-time MLA who hails from the remote village of Raikala in the Keonjhar district. He belongs to the Santali tribe and comes from a working-class family. Such achievements and political mobilities are possible only in a democratic society. Majhi’s leadership even in the form of symbolic representation in a democracy deserves celebration.

Pellet gun fire severely injures Dalit worker off Bangladesh border

By Kirity Roy*  This is regarding an incident of firing pellets by the Border Security Force (BSF) personnel attached with Panchadoji Border Outpost of ‘E’ Company of 90 BSF Battalion on a Schedule Caste youth of village Parmananda under Dinhata Police Station of Cooch Behar district of West Bengal. The victim was severely injured and one portion of his face became disfigured due to pellet firing by the BSF.

Moving towards sustainable development? Social, environmental implications of HCES data

By Dr Vandana Sehgal, Dr Amandeep Kaur*  Sustainable development, the high time agenda, encompasses economic, social, and environmental dimensions, aiming for a balance between all these aspects to ensure long-term well-being and prosperity for all. One of the crucial aspects of sustainable development is consumption patterns. Consumption patterns refer to the way individuals, households, and societies use resources and goods. Sustainable consumption patterns entail using resources efficiently, minimizing waste, and considering the environmental and social impacts of consumption choices.

Sanction to persecute Arundhati Roy under UAPA politically motivated: PUCL

Counterview Network  Top human rights group, People’s Union for Civil Liberties, has demanded that the authorities should immediately withdraw the prosecution against top author Arundhati Roy and Dr Sheikh Showkat Hussain, a Kashmir academic, under the " unconstitutional"  Unlawful Activities (Prevention) Act  (UAPA), calling the Delhi  Lieutenant-Governor nod for the Delhi police move "politically motivated".

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.