Paytm, Freecharge and MobiKwik seek opportunity in adversity

Though PM Narendra Modi’s latest move of demonetizing Rs 500 and Rs 1,000 notes gave sleepless night to many across the country, there is a coterie of digital payment and wallet companies who see a big opportunity in this adversity.

Welcome to truest digital cash India. Now proud sponsor @narendramodi #PaytmKaro !

— Vijay Shekhar (@vijayshekhar) November 8, 2016

For Kunal Shah, founder and chairman of Snapdeal-owned digital payments platform Freecharge, PM’s move is a masterstroke aimed at making India corruption free.

Master Stroke. Take a bow @narendramodi — Kunal Shah (@kunalb11) November 8, 2016

Indeed a masterstroke for both Startup India and Digital India!

MobiKwik founder and CEO Bipin Preet Singh also shares similar sentiments

Biggest surgical strike on cash in living memory. Likely anywhere in history ! Jai ho @narendramodi

— Bipin Preet Singh (@BipinSingh) November 8, 2016

Despite the fact that new currency notes of denominations 500 and 2000 will be issued soon, these executives believe that cash has already lost its credibility. "If you're using any kind of big notes, to pay your household help, for cash on delivery, and so on, it will be less trustworthy," says Singh. "As a customer, you will have a strong pull factor against using cash."

Snapdeal CEO Kunal Bahl wrote on Twitter, "With this, the quantum of India’s economy moving through the digital pipes will witness massive growth. Both Snapdeal CEO Kunal Bahl wrote on Twitter, "With this, the quantum of India’s economy moving through the digital pipes will witness massive growth. Both Snapdeal and FreeCharge are committed to supporting all such initiatives.”

Shit, I can’t even write its raining ‘cash’ for these companies. As Naveen Surya, Managing Director Itz Cash calls it, "This bold and much-needed step can cure us from the disease of cash." (But I would still like to keep two notes with me as a relic.)

Speaking to NDTV, MobiKwik CEO Bipin Preet Singh also said that the present government is very clear in its stand against cash and both consumers and merchants will be affected by it.

Singh adds that this will have another impact on the mobile wallet industry, for the better. At present, there is a limit of Rs 10,000 per month, unless you follow a KYC process at which point you can transfer up to Rs 1 lakh per month. The number of people doing this has been low, says Singh, but now, with an increased reliance on wallets he believes that more and more people will fill in their KYC details to have greater flexibility. And once people discover that they can use it, they'll be more likely to use the wallet in a wider array of situations.

Noticeably, this will also give a much-needed boost towards making India cashless economy. After all, Bitcoin might be a reality in the near future for India as well.

The biggest,the boldest & the most ambitious surgical strike by any government in the world. Hats off to our PM for removing ₹500/1000 notes — Vijay Shekhar (@vijayshekhar) November 8, 2016