As Prime Minister of India made a very big step of making every payment an online transaction to vanish the so much use of cash, there are many startups that are in it already. These startups are already in good position like Paytm, Free Charge and Pay Pal. Many people were awarded for making transaction over the internet during demonetization. But who is their biggest competitor. Who is standing against their goals?

In an interview by Inc42 of Kunal Shah, founder of FreeCharge, when he was asked about the difficulties in trying to make an online transaction is user still indulged with other activity as you said before in an interview, is it still a big issue. He replied, “The ratios have improved significantly. With government also initiating cashless transactions, the number of transactions is increasing day by day. The total digital transactions have surpassed the paper transactions in FY15. Digital transaction stands at $1.43 Tn further classified as online payments accounting for $0.38 Tn, whereas card payments are worth $1.04 Tn.

Therefore, our real competition is cash. We need to drive the shift from cash to cashless. The retention rate is high but the initial swing from cash to cashless or online payment/recharge is the tricky part.”

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Another is by Forbes Magazine when they had interaction with PayPal’s India head Anupam Pahuja. They asked him about who is the real challenge in online transaction sector? Anupam said, “People says that there is a lot new companies in this field of payment and that is increasing competition but I don’t believe that. When you see at chart only 5% transactions are done cashless, rest 95% is still done by cash.

He said India is boon and curse for the online transaction at the same time. Curse is Indian mobile network service. India has very slow and poor mobile network service. With slow speed internet, it has call drop issues too. It makes hard to make people move to the online payment service. But again it is boon because of its poor infrastructure. Many nearby mall or shop to the people are not well maintained and road structure and traffic issue is always there. So no one wants to go out in like that and it forces them to purchase goods online.

So as per these above talk, all the fintech working companies are against each other they all are against one thing CASH. It is being really hard to defeat this giant, because India is still making transaction everywhere in cash and it is 95% of all the transaction that takes place in India.