Mastercard, Visa Set to Reap Spoils of India’s War on Cash
- Modi removes 500- and 1,000-rupee bills from circulation
- Payments networks ‘know how to move in,’ analyst says
An employee jumps over a display counter as his colleagues wait for customers in Mumbai's Zaveri Bazaar on Nov. 19. Analysts believe that The world’s largest payment networks will see increased transactions following the government’s decision this month to remove high-denomination bills from circulation.
Photographer: Dhiraj Singh/BloombergIndia’s war on cash has at least two likely victors: Visa Inc. and Mastercard Inc.
The world’s largest payment networks will see a surge in transactions and cardholders after the Indian government’s decision this month to remove high-denomination bills from circulation, according to analysts who cover the companies. The two networks have been pushing for this kind of change in India, where a McKinsey & Co. study found that more than 90 percent of transactions are still conducted in cash.