November 14, 2017 - One year after demonetization, the Indian economy has a significantly larger digital footprint. Following a decline earlier this year, India is once again converging toward a peer group of developing electronic payments markets, according to Visa’s Digital Payments Tracker for India, a composite index of public economic and connectivity metrics blended with Visa transaction data.
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The payments landscape in India has transformed considerably over the past year. Obsolete notes were almost entirely returned to the central bank, but it appears that fewer new replacement notes were printed than those removed from the system, making alternative payment methods—primarily mobile and/or digital—necessary.
Digital participation is increasing on both sides of the market: strong growth in the number of active debit/credit cards and mobile payments transactions indicate the new digital model is winning over consumers, while merchant acceptance points have doubled in some sectors and cities.