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The Government of India, Federation of Indian Chambers of Commerce and Industry (FICCI), and the UN-based Better Than Cash Alliance recently hosted the Merchant Digitization Summit 2021: Towards Atma Nirbhar (Self Reliant) Bharat. The Summit aimed to catalyze the process of digitization among merchants, particularly in India’s North-Eastern and Himalayan regions, and Aspirational districts.
Highlights of the Summit
The Summit focused on several key areas related to digital empowerment. Priority was given to empowering women merchants, considering their crucial roles in community development. The National Language Translation Mission was recommended for use to circulate digital payments information, privacy policies, and consent forms in local languages to boost trust and autonomy.
The event also identified opportunities to tackle the challenges associated with connectivity, access to smartphones, and digital literacy among end-line merchants.
Fostering Rural Networks Through Responsible Digitization
In light of the increased emphasis on the ‘Make in India’ initiative through the Atmanirbhar Bharat Scheme, the Summit reinforced the importance of involving rural networks such as Self-Help Groups and community enablers within the digital ecosystem. This involvement is proposed to stimulate the formation of local digital ecosystems, helping countless merchants integrate into the formal economy, access credit, and expand their businesses.
India’s Ambitious Digital Transaction Target
From a standard of 2-3 billion digital transactions monthly, India has declared an ambitious projection of 1 billion digital transactions per day. Furthermore, it is predicted that Person to Merchant (P2M) digital payment transactions will surge to about 10-12 billion transactions per month, significantly contributing to India’s burgeoning digital economy.
Recent Related Innovations
Several initiatives related to the enhancement of digital payments have been launched recently, including the Digital Payments Index, Payments Infrastructure Development Fund (PIDF) scheme, and relaxations in the Merchant Discount Rate.
About Better Than Cash Alliance (BTCA)
Launched in 2012 by several renowned organisations and corporations including the United Nations Capital Development Fund and Visa Inc., BTCA focuses on transitioning from cash to responsible digital payments. BTCA, which currently boasts 75 members, aims to boost efficiency, transparency, women’s economic participation, and financial inclusion by digitising payments, but not completely discarding physical cash.
India has been a member of the Better Than Cash Alliance since 2015 and is working towards financial inclusivity.
Federation of Indian Chambers of Commerce & Industry (FICCI)
FICCI, established in 1927, is a non-government, not-for-profit organisation. It is the largest and oldest peak business organisation in India and has played a significant role in India’s journey towards being one of the fastest-growing global economies.
The Merchant Digitization Summit 2021 was indeed a significant event that underlines India’s consistent drive towards a holistic digital economy.
