India has largely been a cash economy. Credit cards are still used by a small fraction of Indians. Debit cards are much larger in number, but used primarily to withdraw cash from ATMs. Cheque payments do exist, but largely in the corporate sector and for some bill payments. Internet payments are yet to take off.
It is in this scenario that the launching of mobile banking and payments has the potential of transforming India's cash economy. Firstly, it is aimed at micropayments.
read more |