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"Demonetization in India has increased demand for cash-
out services from consumers beyond where the current Data points
financial infrastructure can support," said Ranjeet Oak,
President and Chief Operating Officer at MOM. When Globally, there were 387.3 billion noncash transactions in 2014, according
MOM ATM is fully implemented, the move will increase to Capgemini's 2016 World Payments Report. Noncash payments in
ATM access points throughout the nation from 200,000 to developing countries, as a group, are averaging annual growth rates
more than a half million, Montgomery said. of 16.7 percent; in developed countries (United States, Europe) noncash
payments are increasing at a combined average of about 6 percent a year.
MOM isn't alone in its quest to capture Indian market share
with mobile payment solutions. National Payments Corp. Here's a regional breakdown of global noncash transactions in 2014:
of India, Visa and Mastercard, working with the Reserve
Bank of India and leading Indian banks, created Bharat • 139.8 billion in North America, of which the lion's share
QR, a national interoperable mobile solution based on (128.3 billion) took place in the United States
Quick Response (QR) codes that the government ordered
built to support demonetization. "For consumers Bharat QR • 93.6 billion in Europe
eliminates the need to use multiple QR codes from different • 41.3 billion in what is considered the "mature Asia-
payment networks," Mastercard stated. When the solution Pacific"
is fully rolled out, it is expected 57 million small and micro
merchants throughout the country will use it. • 38.3 billion in Latin America, where Brazil charted the
fastest growth from 2013 to 2014, at 10.4 percent
mVisa, which also uses QR codes, went live this year in
India, Kenya and Rwanda. The mobile solution is slated • 38.3 billion in emerging Asia, where China charted 47
for rollout in other emerging economies, including Ghana, percent growth from 2013 to 2014
Indonesia and Vietnam. "Small merchants using mVisa
for the first time are most excited about how quickly and • 35.9 billion in Central and Eastern Europe, the Middle
securely they receive electronic payments without having East and Africa
to invest in expensive point of sale infrastructure," said
Uttam Nayak, Visa's Senior Vice President of Digital for
Emerging Markets.
Indian market. "We have perfectly good alternatives in
Paytm, an Indian-based digital payment company with the United States. We can get along fine without it [mobile
financial backing from China's Alibaba Group Holding payments]," he added.
Ltd., claims 100 million Indian users of its mobile wallet.
And it reported a huge boost in signups in the wake of It's not just India. Many emerging and established markets
demonetization. Paytm claims over 4.5 million merchants pose significant barriers to new entrants from the United
and aims to aggressively grow that base to 10 million States. "Local payment preferences are vastly different
by the end of 2017, according to company statements. In from market to market," said Neeraj Gupta, Leader, Product
2016, Paytm was one of a dozen Indian firms to garner Management at Vantiv Inc. So do regulations, licensure
approval as "payments banks," special entities created requirements, clearing and settlement rules and legal
by the government to help mainstream unbanked and conventions.
underbanked Indians.
In Germany, the most common method of payment is cash,
These are ambitious goals for a country with a population although card payments have been growing at double-digit
of 1.34 billion, an installed base of just 1.3 million POS rates since 2010, according to Euromonitor International. In
terminals and only about 5 percent of personal consumption Brazil, fewer than four in 10 consumers have internationally
spending occurring digitally in 2016, according to Visa. branded credit cards. One of the most popular ways to pay
Then there is the sheer size of India, its rudimentary in Brazil is with Boleto, a bank-backed installment credit
infrastructure (for example, remote towns and villages that scheme.
still lack electricity) and the existence of multiple languages,
dialects and cultural norms. It's a market unlike any U.S. Data published by Capgemini indicates direct debits
acquirers have experienced, experts noted. outstrip credit card payments in Asia-Pacific nations
and emerging Asian economies. And a 2016 survey by
Think locally Nielsen found consumers in China overwhelmingly prefer
"You have to rethink things from an Indian perspective technology-enabled payments, according to ChinaDaily.
and come up with products and services that work in these com.
market conditions," Montgomery said. Mobile works well
in India because it responds to conditions unique to the Among Chinese consumers surveyed, 86 percent had
made online purchases using digital payment systems

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