Indian retail chain Delhi Stock Exchange (DSX) will start accepting card payments at retail shops by the end of this month.
The move is part of a push by the government to tackle fraud and abuse of gift cards and debit cards in the country.
The gift card exchanges are currently restricted to small businesses, but the government wants to expand the concept to all businesses.
“We will be introducing gift cards as a way to give people more choices and to give them more control of their money.
This will also be a way for consumers to save money and will be a great opportunity for the community,” said Delhi Chief Minister Arvind Kejriwal.
Delay: The gift cards will not be accepted at most retail stores, including those located in major cities.
The Indian Exchange Board (IIEB) says it will take a month to finalise the details.
“We are expecting a finalised plan by December-January.
We have been waiting for the gift card payment scheme to be implemented for many years and now we have finally got the finalisation of it.
“If the plan goes well, the cards will be in circulation by January 31,” Kanth Kaur, managing director of Delhi Stock exchange, told Reuters.
The gift-card exchange will also offer cashless transactions at select retailers, including banks and ATMs, and will accept cards from banks and debit card companies.”
We want to ensure that we have a viable business and this is why we are introducing gift card payments to a limited number of shops,” Arundhati Bhattacharya, director of gift card platform G2A said.
Indian government aims to encourage cashless payments, which are the only method of payment for most of the country’s 1.2 billion people.
Cashless payments make up about half of all transactions in India, with about 50 per cent of cash transactions taking place with cards.
Gift cards have become a popular form of payment in India due to their low cost, convenience and low fees.
India’s gift card market is estimated to be worth $1.5 trillion, but its total market share is about 20 per cent.
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