Financial inclusion as per definition is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society. To achieve this numerous digital payments options were launched e.g. mobile wallets. But they failed to achieve their target (of financial inclusion), despite being cheaper (read perception) than traditional channels (brick and mortar branches).
This is where most of wallet providers have lost the game as they are not able to provide services at affordable COST. It is not their fault, as there are some inherent cost inbuilt in these kinds of systems e.g. mobile network cost, interchange fees, service charges etc. etc.
Another reason (for not achieving this goal of financial inclusion) I believe is peoples love for cash. This love of theirs has cost government 3.5 bn USD or 22000 crores in 2015 alone, despite having risk associated with cash like looting, theft.. So, do we need to remove cash from system for achieving this humongous task of financial inclusion?
Although these mobile wallets tried acting as villain in this love story (by removing cash from system) but failed despite having muscles of mobile, WHY?
In order for these so to say villain of cash to win, they first need to understand the chemistry of this love affair with cash.
- Cash works offline
- Cash is anonymous
- Cash has no MDR
- Cash is fungible
- Cash transactions are atomic
For villain to win in this love story, he should have all qualities of hero (which in our story is CASH).
A solution which replicates all qualities of cash (our hero) i.e. fungible, anonymous, simple/convenient to use (just like cash), no fee for micro-transactions and above all should be offline (should not depend on 3rd party/servers for authenticating the transaction as there is no 3rd party involved in a cash transaction it’s just payer and payee) and secure as convenience without security will not achieve objective.
PaySe™ is such solution which makes cash digital securely (existing hero in new avatar). There is no need to carry physical currency, when you have PaySe™ (you are carrying digital cash) and is offline (just like cash).