Bold. Revolutionary. Game-changing. Modi has delivered a crackdown that India has been waiting for a long time - currency reform. As he scraps Rs 500 and Rs 1,000 notes, no longer deeming them legal tender, the next 50 days will see a fundamental and permanent shift towards a cashless India - not just for consumers but also for businesses, according to Mobikwik co-founder and CEO Bipin Preet Singh.
Otherwise fighting it out neck-and-neck in a cutthroat market, the notion that cash has lost its credibility and it’s no longer safe is uniting the evangelists and patrons of the UPI revolution in India.
“Unfortunately, some people will be negatively impacted but the corner cases have been adequately addressed,” adds Bipin, at the heart of a sector that is one of the biggest gainers with this move.
Having said that, the recently popularised UPI is only just finding its feet here; although payment bank licenses are in place, this move, no matter how seemingly strategically planned, was unanticipated, says Bipin.
“High-value industries like real estate, diamonds, jewelry will see the maximum negative impact, and it’s the best time to be in the payments business. e-Money will see major adoption during the 50-day period and will benefit all parties,” explains Bipin,
There will be a fundamental shift towards adoption of cashless across the spectrum - from the poor to the rich. The poor will not want to risk their cash again while the rich know that it’s no longer possible to stash a pile of cash. “We expect 20x growth in next few months on business volumes,” says Bipin, adding, “and we have recently scaled up to be prepared for 50x growth.”
Amongst all the avenues and offerings at Mobikwik, Bipin is particularly optimistic about the adoption of their ‘Cash deposit’ and ‘Cash pickup’ services.
“There will be some small hiccups, but I don't see anything going wrong. I think the citizens are behind the government on this one and that's the most important thing,” concludes Bipin.