NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, May 24, 2017

In November 2016, the Indian government pulled high-denomination currency bills out of circulation in an effort to clamp down on corruption and terror finance. Following this, people were forced to stand in long lines outside banks and ATMs to trade in old notes for new ones. Often, the ATMs ran dry by the time a citizen got his or her turn after waiting for hours in the sun.

While people bore the brunt, one sector thrived: mobile wallets. The economy, where an estimated 95% of transactions were done in cash, was now looking at a cashless future. From big companies to roadside stalls, a slew of businesses began accepting payments through e-wallets.