At 8 pm on November 8th last year, Prime Minister Narendra Modi announced that Rs 500 and Rs 1000 notes would not be a legal tender post 12 midnight. The move was aimed at curbing terrorism and reducing black money. While the results of those are debatable, the last one year has surely seen a huge jump in the fintech sector.
On December 30 2016, National Payment Corporation of India (NPCI) launched the BHIM app. It allowed people to transfer money and make payments using Unified Payment Interface (UPI). Users can use their Aadhaar number to register and start using the app. As of July this year, BHIM has had more than 16 million downloads.
In March 2017, BHIM-Aadhaar Pay was launched. The app allows transfer of money using biometric credentials. Merchants can use the app if they have a fingerprint scanner, essentially allowing those who do not have a phone also to pay in cashless mode.
With the increased use of digital payment modes such as wallet and UPI based models, the Reserve Bank of India put regulations in place for them. The guidelines released in March 2017 mandated Know Your Customer (KYC) for wallet players, as well as increased the capital the company needs to maintain.
Moving forward with a clear aim to maximum digitization of the payment industry in the country, a mandate has been put forth, where food and employee coupons need to be digitized by March next year. This means Sodexo and restaurant coupons will also be digitized.