Group Cashlesseconomy

EFM
PRESENTATION-
CASHLESS
ECONOMY IN
INDIA
PRESENTED BY -
• VISHAL NAIDU
• AMANDEEP KAUR
• PRABUDDHA
INTRODUCTION
 Cashless economy means an economic system where digital

transactions like net banking, mobile banking, digital wallets,
payment through debit cards and credit cards are used to replace the
traditional method of payments made via cash or coins.
 Countries like Denmark, Sweden and Norway are leading the way to
a cashless economy in the world.
This Phot o by U nknow n aut hor is licensed under CC BY-ND.

CASHLESS
ECONOMY IN INDIA
 Total value of digital

payments in India from
financial year 2018 to 2022,
with an estimate for 2023, by
transaction type
TYPES OF CASHLESS MODES AND PAYMENTS
BANKS PRE-
BANKING MOBILE MOBILE
UPI PAID
CARDS BANKING WALLETS
CARDS
POINT OF MICRO-
USSD AEPS
SALE ATMs
CASHLESS ECONOMY- PREPAID PAYMENT
INSTRUMENT
Open Semi-Open Closed Semi-Closed

Wallets Wallets Wallets Wallets
Cost Effective to Banks
ADVANTAGES
Low Time Consumption
OF A
Safe and Secure
CASHLESS
Up-gradation of Technology
ECONOMY IN
Control of Black Money and Check for Anti-Money Laundering
INDIA
Circulation of Fake Currency notes can be curbed
CHALLENGES IN
TRANSITIONING
TO A CASHLESS
SOCIETY
 Infrastructure and digital
inclusion
 Availability and quality of
telecom network
 Financial Inclusion
 Digital and Financial
Literacy
 Cyber Security
 Urban-Rural Divide
HOW CASHLESS PAYMENTS HELP
ECONOMIES GROW
 Cash V/S Digital is debatable topic
 Payments are transparent, clean, and usually quite simple
 Laying the Foundations
 Governments and companies might also consider consumer-friendly
schemes
 Provide world-class supporting infrastructure
 Streamline and enforce regulations
This Phot o by U nknow n aut hor is licensed under CC BY-ND.

SURVEY FOR CASHLESS ECONOMY
OPPORTUNITIES FOR
INDIA TO LEARN FROM
SWEDEN
Checking the continuing rise in the

total value of the currency in
circulation and its share in the
overall GDP, a trend particularly
seen in the US, Switzerland and Euro
area.
India’s cash to GDP ratio — an

indicator of the amount of cash
being used in the economy — is
around 12 to 13%, which is much
higher than major economies
including the US
BARRIERS FOR
INDIA IN CONTEXT
WITH SWEDEN
1.Internet Speed
2.Internet Penetration Rate
3.Consumer Behavior
4.Literacy Rate
5.Varied Rate
CASHLESS
ECONOMY AND
GOVERNMENT
INITIATIVES
 At the time of demonetization,
India’s cash to GDP ratio was
around 12%.After
demonetization, that ratio
came down to around 9% of
the GDP.
 Paytm had witnessed a 700%

increase in the overall traffic
and a 1000% increase in the
amount of money added to its
account in the first two days of
post demonetization.
CASHLESS ECONOMY AND GOVERNMENT
INITIATIVES
UPI
Payment Service Providers(PSPs)
NPCI
Direct Benefit Transfer (DBT)
NITI Aayog Committee:
Increasing Urbanization:
Pradhan Mantri Jan Dhan Yojana
WHAT IS UPI
AND ITS
VERSIONS
 UPI 2.0
 UPI 123PAY
 e-RUPI or e₹UPI
TRANSACTION VALUES ACROSS DIFFERENT
APPS
Transaction
Transaction Number (In
App Value (In Crores) Rank Million) Rank
PhonePe 5,24,742.49 1 2,993.83 1
Google Pay 3,66,669.09 2 2,130.63 2
PayTM 1,11,149.66 3 933.88 3
Cred 19,716.43 4 14.89 9
Yes Bank
Apps 15,236.04 5 60.8 5
ICICI Bank
Apps 11,509.29 6 37.34 7
BHIM 7,823.95 7 24.48 8
Amazon Pay 6,751.80 8 68.77 4
Axis Bank
Apps 1,213.95 9 53.99 6
Airtel
Payments
App 555.26 10 7.41 10
DIGITAL
PAYMENTS
GROWTH IN
INDIA
 Smartphone penetration in
India has risen from 2% in
2005 to 32% in 2020 and is
expected to get to 36% by
end of 2022
 This is one critical trend

that has boosted digital
payments in India, leading
to a 143% rise in UPI YoY
E- COMMERCE TRENDS IN INDIA
PREFERRED E-
COMMERCE
METHODS IN INDIA
E-COMMERCE MARKET AND VALUE GRAPHS
WHY DOES GROWTH RATE TEND TO FALL ?
As more number of new firms

enter , prices will fall leading to
lower profits
Profit = ( P – ATC) * Q
70-80 Mn paid
subscribers of OTT
platforms at the end of User penetration will be
2021, up from 14 million 24.5% in 2022 and is
in 2018 and just 0.5 expected to hit 31.2% by
RISE OF OTT million in 2014-15 2027.
PLATFORMS IN End of 2021 2027

INDIA
2027 2030
In the OTT Video Revenue expected to

segment, the number of reach $13-15 Bn by 2030
users is expected to
amount to 459.1m users
by 2027.
WHAT STRATEGIES OTT USE TO CAPTURE
MARKET ?
GOAL AUDIENCE CONTENT MONETIZATION CONTENT

DEFINITION BUILD-UP OPTIMIZATION MODEL PROMOTIONS
OR SEO ADOPTION
DETERMINING DEMAND CURVE FOR OTT
PLATFORMS
AVERAGE PRICE OF QUANTITY OF

SUBSCRIPTION USERS(MILLION)
149 17.5
199 12.5
499 8
649 6.5
899 4.5
DEMAND SCHEDULE
GROWTH OF ONLINE
FOOD ORDERING
SERVICES
DEMAND AND SUPPLY
FACTORS AFFECTING
ONLINE FOOD SERVICES
DEMAND FACTORS
1. Empowering Demographics
2. Increasing Income
3. Positive Lifestyle Changes
4. Rising Number of Working
Women
SUPPLY FACTORS
1. Low Investment
2. Emerging Logistics Provider
CHALLENGES OF ONLINE FOOD ORDERING
IN INDIA
CONCLUSION
Cashless economy improves velocity of value
transfers, provides transparency and makes it
easier for banks to monitor.
Certain challenges are detrimental

to cashless economy but government initiatives
are trying to tackle them.
Growth of E- commerce, OTT platforms and

online food ordering services enshrines a
bright future for cashless economy.
THANK YOU

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EFM

 Cashless economy means an economic system where digital

This Phot o by U nknow n aut hor is licensed under CC BY-ND.

 Total value of digital

Open Semi-Open Closed Semi-Closed

This Phot o by U nknow n aut hor is licensed under CC BY-ND.

Checking the continuing rise in the

India’s cash to GDP ratio — an

 Paytm had witnessed a 700%

 This is one critical trend

As more number of new firms

PLATFORMS IN End of 2021 2027

In the OTT Video Revenue expected to

GOAL AUDIENCE CONTENT MONETIZATION CONTENT

AVERAGE PRICE OF QUANTITY OF

Certain challenges are detrimental

Growth of E- commerce, OTT platforms and

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