Mastercard Seeks to Empower Small Businesses and Farmers in India Through Digital Payments

Mumbai, Oct 24 (KNN) Mastercard Inc. is strategically positioning itself to capitalise on the burgeoning digital payment landscape in India, where credit opportunities are rapidly expanding. 

According to the Reserve Bank of India, digital transactions surged by 39 per cent to 187.4 billion rupees (approximately USD 2.2 billion) in fiscal 2024, largely driven by the Unified Payments Interface (UPI). 

This innovative public infrastructure platform accounted for a remarkable 70 per cent of all digital payments, signalling a significant shift in consumer behaviour toward cashless transactions.

Gautam Aggarwal, Mastercard's head for South Asia, emphasised the company’s commitment to broadening its partner ecosystem. The firm is actively collaborating with its existing banking partners to explore new avenues for products and services. 

“We are looking to widen their aperture,” Aggarwal noted, indicating an intent to enhance offerings and reach underserved segments of the population.

In addition to traditional banking partnerships, Mastercard is investigating collaborations with non-traditional financial institutions to extend credit access to smaller towns and underrepresented groups, including small businesses, farmers, and women entrepreneurs. 

This approach not only aligns with Mastercard's goals of financial inclusion but also taps into the untapped potential of these demographics, which often struggle with limited access to credit.

The widespread adoption of UPI has significantly bolstered India's digital economy, facilitating financial inclusion by enabling small businesses and unbanked individuals to establish financial records and credit histories. “There is a huge opportunity in credit,” Aggarwal stated, highlighting the potential for growth in this sector.

One of the noteworthy initiatives by Mastercard is Community Pass, a digital marketplace tailored for farmers. This platform allows farmers to sell their produce and make purchases using various payment methods, including credit cards and UPI. 

“Our aim has been to expand the ecosystem by making people aware of how they can harness the power of digital payments,” Aggarwal explained.

Despite the rapid growth of UPI, Aggarwal reassured that it has not significantly impacted Mastercard's core business. Instead, he pointed out that the digital payments spectrum in India has expanded to include cash, UPI, debit, prepaid, and credit cards, providing ample room for growth. 

As India aims to become a USD 7 trillion economy by 2030, Aggarwal noted that there is significant potential for increasing transaction values across all payment segments. 

“We are still touching the tip of the iceberg in India on digital payments,” he concluded, underscoring the vast opportunities that lie ahead for both Mastercard and the Indian digital economy.

(KNN Bureau)