Report Claims Digital Payments Ecosystem In India Is Better Than China, UK, Singapore!
If we go by numbers, then no doubt countries like China are far, far ahead of India in digital payments.
If we go by numbers, then no doubt countries like China are far, far ahead of India in digital payments. Mobile payments alone crossed $5.5 trillion mark in China last year, which is 50 times than that of US.
However, if we observe the innovations, and the ecosystem, the swiftness and the penetration, then India is currently #1 in the space. As per an interesting report titled ‘Flavors of Fast’, India has beaten even China in digital payments.
Of course, we are not comparing the ‘numbers’ here, but ‘features’, which makes us #1!
How India Beats China In Digital Payments?
As per the report created by a FIS, which is a US based technology provider, India has evolved into a much advanced ecosystem of mobile and digital payments, compared to anywhere else, or any other country.
Out of 25 countries ranked as per their methodology, India is placed at 1st position, when it comes to factors such as ‘round-the-clock availability, adoption, and immediacy of payments’.
And, if we go deep, then we will find that innovations such as IMPS, which was launched in 2010, and UPI, which was launched in 2016 played major roles in this achievement.
Both IMPS and UPI were created by NPCI, which is the hub of digital payments innovation in India.
How Was The Ranking Done?
Researchers of this study developed a unique, one-of-its-kind index called Faster Payments Innovation Index (FPII), which was created in 2014.
Various parameters related with digital payments are considered for ranking countries as per this index, which involves innovative approaches, speed of digital payments, penetration and how widely these are used by the population.
The rankings are divided into scale of 1 to 5.
While Scale 1 reflects fast payments; scale 3 reflects ‘highly desirable features enhancing customer value such as universal access and 24×7 availability’.
Scale 5 is the ultimate ranking, which involved advanced features such as ‘remittance information, push and pull capability and aliases’ and more.
India is the only country ranked with Scale 5, as per the index!
Ramaswamy Venkatachalam, regional managing director—India & South Asia, FIS, said,
“India’s IMPS was the only system across the world performing at level 5,”
Here is a brief overview of the ranking:
- Scale 1: Taiwan
- Scale 2: Mexico, Brazil, Ghana, Nigeria, Iceland, China, Korea & Sri Lanka
- Scale 3: Chile, Sweden, South Africa, Bahrain, Japan
- Scale 4: Spain, Kenya, Poland, Finland, UK, Singapore, Denmark Switzerland and Thailand
- Scale 5: India
Now, it would be really interesting to see, how soon, and how much can the foundation of digital payments developed by India helps us to scale the volume, and beat China and other countries in actual numbers as well.
We will keep you updated.