Debit Card Will Propel India Towards a Less Cash Society: Visa

Visa, an arm of the NYSE-listed Visa Inc, the world’s leader in digital payments, has launched a new initiative to spread awareness about debit cards in India. Visa is spreading awareness among people about the safety and simplicity of their debit cards, along with many features. Visa also highlighted that Debit card will propel India towards a less cash society. As per recently released data by the Reserve Bank of India, digital transactions in our country have increased by 50 percent in the past 2 years across different modes like payment cards, wallets, mobile banking etc. While the rapid penetration of eCommerce and mobile technology has complemented this change, there has been a growing preference among Indians in metro cities and mini metros alike, to pay using debit cards.

Speed, simplicity and security have begun to matter much more to consumers than carrying large amounts of cash for various payments. The circulation of debit cards in the country has increased by nearly 25 percent in the past two years, resulting in a gradual increase in POS-based debit card use for daily as well as discretionary purchases.

Visa Group Country Manager for India and South Asia, TR Ramachandran, said that Indians present a unique combination of aspirational yet traditional spending behaviour. The Indian consumer likes to spend within her financial capabilities but is experimental in trying out and transitioning to new forms. The sheer number of more than 950 million debit cards in the country, together with the promise of security, simplicity and convenience, is leading to a slow but pivotal shift from cash to debit cards for making payments. It should be the focus of all players, therefore, to provide a smooth and hassle-free payment experience to cardholders, he said.

From merely 2 lakh PoS terminals in 2016 to more than 35 lakhs now, there has been continuous improvement in payment infrastructure, with more touch points for customers today to pay using their cards. This has not only simplified their purchase experience but also protected them from the hassles of managing cash. At the same time, there has been an increased and relentless focus on enhancing the security of the entire ecosystem, so that more citizens may participate in the journey to a less-cash economy without hesitation.  

In case of online shopping, ‘Verified by Visa’ is a password-protected authentication system designed to confirm the identity of the cardholder when a Visa card is used online. When the cardholder enters correctly the three-digit CVV number mentioned on the back of the card, it sends a password to the cardholder’s registered mobile number to authenticate her.

Ramachandran said that while customers can keep a tab on debit card activity by opting for SMS services, they should never give their card to, or share their PIN/CVV with a known or unknown person. In case the card is lost or stolen, they should report it to their issuing bank immediately.