The Objectives of an Acceptance Strategy

Digital payments add efficiency to the flow of money in the economy, increase transparency and generate additional revenue through tax.

Consumers get a secure, convenient way to transact, while merchants, traders and other small business units have less cash and checks to manage. Additionally, digital payments enable transactions over the web and mobile, while creates new revenue streams as well as extends the reach of goods and services.

Above all, digital payments have a role to play in bringing more consumers and businesses into the formal economy through financial inclusion. This alone is the single most important reason to encourage a shift from cash to cashless.

Similar to the recommendations of the Reserve Bank of India, an approach that combines the power of market forces and the proper government policies to arrive at a mix of incentives, mandatory requirements, encouragement to merchants, tax rebates to consumers and overall awareness are needed to encourage the use of cashless among households.

  • Increase financial inclusion of consumers, merchants and traders

  • Remove mental barriers and change payment habits of consumers, enterprises and public institutions towards greater use of digital payments

  • Better utilization of payment infrastructure and acceptance network

  • Mandate standards for security and effectiveness of digital payments, expansion of availability and promote innovation

  • Ensure payment neutrality through a free market and competition in payments

Benefits of the shift from Cash to Cashless
Consumers get security and convenience
Merchants manage less cash and checks
Online and mobile transactions create new revenue streams and extend reach of goods and services
Financial inclusion for more consumers and businesses

Less Cash societies are well known in the world for their positive effects on economic growth as a result of the opportunity to promote financial inclusion. To learn more read the full Less Cash Roadmap book.