India’s Cash Ban Is the Best Thing to Happen to Digital Payments

Vijay Shekhar Sharma’s Twitter feed has come alive these past two weeks. From a roadside egg-seller in Bhopal to a soda hawker in Bangalore, the founder of Paytm has posted snapshots of the unusual array of merchants who ply the teeming streets of India -- and are now turning to his digital payments startup for help.

Those fishmongers, vegetable vendors and rickshaw drivers count among the thousands who’ve signed onto India’s largest digital payments service since Prime Minister Narendra Modi triggered a nationwide cash crunch when he scrapped the country’s two largest note denominations. While the aim was to vanquish “black money,” it could end up being the best thing to happen to its nascent online finance industry and haul its antiquated economy into the 21st century by making digital payments mainstream.