The demonetisation scheme gave Visa a massive boost with the fastest growth pace recorded in five years. The world’s largest card payment firm saw a big influx of card and online transactions this year.
The 2016-17 financial year revenue of the Indian arm of Visa showed an increase of 29% from just a year back. The company grew by Rs.449 crore with a net profit of 69 crore, according to the Registrar of Companies.
In 2016, Visa launched a mobile-based payment solution called mVisa. This helped facilitate easy transfer of money from the customer to the merchant through a mobile phone. Merchants also do not require any additional hardware and can instantly receive money and complete the transaction.
Global CFO of Visa, Vasant Prabhu, stated that the company gives 100% support to the government’s desire to move India into a digital society rather than a cashless one. He mentioned that India has largely been a cash-based economy for a long time. Visa is taking steps to block and tackle that is required in the business of digitising cash. He stated that the company is working with issuers to spread awareness and build up an overall acceptance.
Digital transactions peaked close to 1 billion in December 2016. In September 2017, it touched 877 million but rose even further to the highest-ever transaction volume in October reaching 965 million. Compared to September 2017, October saw credit card and debit card transactions increase by 6.4% (255.7 million transactions). eWallets averaged about 90 million transactions per month from January to October.
Provisional data from the RBI indicates that digital transactions have inclined by 31% from November 2016 to September 2017. However, cash in circulation continues to be high at 91% of the pre-demonetisation days.
The note ban has pushed people to digital transactions, changing old habits, but there are many who still rely solely on cash.