I am late to this party but wohooooooo ๐๐๐
UPI e-vouchers will change the world of Direct Benefit Transfers (and gift cards) forever.
Read ๐ to understand how (1/10) :
#upi #payments #fintech #DigitalPayments twitter.com/narendramodi/status/1397867220303159297
(2/10) GOI's press release explains E-voucher as a 'digital payment option which enables financial transactions linked to a specific purpose which can be used only by the intended user'
What does that mean?
(3/10) E-vouchers are digital gift cards built on top of UPI.
Basically, GOI can now create a subsidy scheme by identifying
A) The people who need assistance
B) Shops where these guys should be able to spend
Once this is done, transfers can begin in <24 hours.
(4/10) Why are E-vouchers better than today's gift cards/existing government solutions?
A) Lowest charges (no KYC, cards issuance costs, ..)
B) No need for custom tie-ups with merchants. UPI is accepted everywhere. Merchant validations are handled out of the box by payment Co.s
(5/10) GOI can now replace every subsidy program with direct transfers to citizens. No need for "licensed establishments" aimed at servicing the poor/needy.
(6/10) Let the citizen choose who sells him groceries, fertilizers, fuel, medicine, etc. Just assist him where needed.
Targetted Direct benefit transfers have also been shown to reduce corruption and increase societal progress
(7/10) Today, 9% of India's budget goes into subsidies for various programs. Corruption is rampant.
(8/10) Approximately 50% of money spent by states on Food subsidies is diverted through illegal channels to the black market.
Ditto for fertilizer, medicines and various other programs.
E-voucher allows GOI to bypass them all.
(9/10) For the crypto enthusiasts: E-voucher (if allowed to) can enable ERC-20 like tokens on India's TradFi stack.
Startups/orgs can create their own vouchers, allow consumers to buy/sell from the UPI app of choice. Redemption could happen on self/partner merchants.
(10/10) A lot depends on the product experience, operating guidelines, commercials established by NPCI. I am sure they will do a good job.
E-vouchers will be very big in the next 10 years๐พ
Many Congratulations to @NPCI_NPCI @dilipasbe @Product_nation @sharads @dimplejain07 and other individuals who've brought this to life.
Can't wait to hear the official announcements soon.