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Insights from South China Morning Submit, The Financial Occasions and Occasions of India

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Vacationers in China have hassle making easy funds. An Indian lawmaker warned of “ticking time bombs”. Small Cuban companies are bracing for the impression.

Nations have been transitioning to prioritize digital funds for years, and the transfer to “cashless” societies has some clear benefits. However the aim has encountered obstacles on this planet.


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China has been largely cashless for years

Sources: South China Morning Submit, CNBC

As China tries to spice up its tourism following the lifting of COVID-19 restrictions, vacationers have reported having hassle making funds in a largely cashless economic system, the place many locals use WeChat and AliPay for funds, South China Morning Submit reported this week. Final summer season, these apps allowed customers to attach their worldwide bank cards for the primary time, however foreigners nonetheless face restrictions for particular person transactions and transfers or are cautious of giving private information to the apps. China's central financial institution final week inspired extra banks, accommodations and eating places to just accept international playing cards, an indication that Beijing needs to encourage tourism to assist its struggling economic system.

Paytm's collapse highlights India's 'teenage' fintech sector

Sources: The Financial Occasions, Enterprise As we speak, TechCrunch, Bloomberg

India has additionally been a frontrunner within the cashless transition; A authorities minister lately claimed that India does as many cashless transactions in a month “as America does in three years.” However the speedy development of the fintech sector has include challenges: final week the nation's central financial institution clamped down on the Indian digital fee platform Paytm, ordering it to cease accepting deposits on the finish of the month. It prompted a lawmaker to warn of the dangers of digital transactions, calling two different main foreign-backed fee platforms “ticking time bombs,” whereas a parliamentary panel pushed for extra authorities assist for home fintech gamers. The Paytm saga “confirmed India's fledgling fintech sector for what it’s,” Bloomberg's Menaka Doshi wrote. “Hungry for development, however disdain for course of.”

Digital funds have change into globalized right into a boon for vacationers

Sources: The Telegraph, The Occasions of India, Mint

Vacationers are struggling in a cashless world, the Telegraph's journey correspondent argued final yr. Bank cards will be declined or include charges, and it's not unusual for telephones to expire of battery whereas visiting. However the platforms are more and more enabling digital transactions to be standardized throughout borders – maybe offering a glimpse into the way forward for a cashless world. This week, officers introduced that India's Unified Funds Interface — a free digital fee platform that works with a number of fintech firms — can now be used to make rupee funds in Sri Lanka and Mauritius, and on the Eiffel Tower. The transfer was seen as a boon for Indian vacationers who wouldn’t have to fret about trade charges or money withdrawals.

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