India’s push to digitize financial transactions and remove cash from its payment systems continues.
The government’s latest instructions focus on a specific vertical, potentially expanding opportunity for payment facilitators and other payment providers in India.
India’s University Grants Commission has advised the country’s higher educational institutions that payments should be made using digital means rather than cash.
The requirement encompasses the universities’ own business payments, such as student fees and staff salaries, as well as student services and businesses that operate on campus.
This latest move to eliminate non-digital forms of payment is opening a door for companies such as Indian payment facilitator Airpay, which currently sees about 15% of its business coming from educational institutions.
The company expects that number to grow following the government’s directive, Airpay co-founder and CEO Amit Kapoor told PaymentFacilitator.com.
Airpay’s payments platform is delivered as a SaaS solution that enables its clients to accept inbound payments and to pay out to vendors as well. The company offers a dedicated platform to meet the specific needs of the education vertical, which positions it well in the market, Kapoor said.
“The banks compete with us, but the fact is, it’s not just payment processing, it’s the end-to-end solutions which everyone is looking for,” he said.
The University Grants Commission is a government entity that provides funds to universities and manages higher education standards. The new directive comes at the request of India’s Ministry of Human Resource Development.