Cashless India Will Soon Be World Leader
Photo: Market Watch

Cashless India Will Soon Be World Leader, Credit Card Usage Going Down…

The deliberate demonetization of 85%+ of money in November 2016 forced many changes. Initially business activity slowed, but then given jugaad – Indians started switching to mobile money (even without bank accounts)- such as the 10 apps – PayTm, Freecharge, Mobikwik, and others, all Indian companies. Even for street vendors – bhel puri walla, to fish walla – switching was fairly even for those with less education. The volume of mobile money activity is small, the size of each transaction is small, but are growing at more than 100%, while credit cards even after decades there are only 30 million cards in use. Mobile money could be nearly 500 million with Paytm alone having have this number. Smart phones, availability of one of the cheapest smart phones in India, demonetization and big RBI and government support is driving a revolution in the mobile wallet space. As our Prime Minister has said, the smartphone could soon become your bank. India would soon be a world leader in this space…

Source: Market Watch

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INDIAN E-COMMERCE COMPANIES MAKING MILLIONS
Photo: WSJ

INDIAN E-COMMERCE COMPANIES MAKING MILLIONS & CRORES OF LOSSES EACH MONTH … IS THIS SUSTAINABLE?

India’s eCommerce market should hit USD 11 billion or nearly Rupees 73,000 crores by year end. There is intense fight for market share and dominance among the well known players. However, most if not all companies are bleeding crores of losses each month. Per estimates, Amazon is losing an estimated Rupees 170 crores each month, Paytm is is losing an estimated Rupees 100 crores each month and Snapdeal lost nearly Rupees 1,400 crores last month. Just to note, these are real losses funded by investor equity funding.

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