Friday, December 9, 2016

Cashless- prepaid cards-No Mobile phones

Government of India is announcing  many incentives to encourage cashless transactions.

What surprises me is that I could not find a prepaid card procurement and transacting it through point of sales outlets. It looks simple to implement.

In the present card transactions the main deterent seem to be the  2% transaction fee which VISA or MASTERCARD or PAYTM charges from the vendor.

 Government of India can step in here and make it less than 0.5% as the volume is high. This can be collected even when the card is purchased so that the the vendor is not charged anything at the time of payment.

This arrangement should be gladly acceptable to every one.

Now POS machines have become very affordable -less than  Rs.5000 - by any shop owner.
The whole scheme will work as shown below:

I am sure the day is not far as our country is full of financial geniuses.

For more FAQ watch this slideshare