Visa for popularising e-payment solution

Visa International, having garnered a lion's share of the electronic payment system in India, is in talks with the Union government as part of the plans to target the untapped segments of government payments and receipts, and the large population without a bank account.

The government's conversion of payments and receipts to electronic payment system alone can help the country's gross domestic product grow by another 1-1.5 per cent, according to Santanu Mukherjee, Visa International's country manager, South Asia.

The amount saved through reduced documentation, streamlined administrative processes, reduced bureaucracy and minimal extent of slippage will definetly cut costs.

Visa, a member of the working group on payment cards, recently made a presentation to the Reserve Bank of India about the need to bring government payments under the electronic system. The response has been good, says Mukherjee.

Pensions, tax collection and electricity/ water bills are some of the areas where the government could do away with the conventional time consuming methods and use electronic payment system instead.

Pensions, for instance, could be paid directly to the pensioner's accounts under the proposed system. Electronic payment of bills could save both the consumer and the government time and resources while making the whole process transparent. The rural segment, which is predominantly untapped, is another key segment that Visa is eyeing.