E-payment to save India $22bn

A McKinsey report reveals that should India invest in an electronic platform to facilitate government payments, this would save the developing country $22 billion, reports Silicon India.

According to the firm, electronic payment will ensure that around 80 million to 100 million poor households in India will have access to secure and convenient benefits directly from the government without the interference of intermediaries.

The report suggests e-payment could improve the effectiveness of government services to the poor, and improve efficiency in tax collection, and create business opportunities by enabling the delivery of new products and services.

Merchant services company Smartpay has confirmed plans to list on the Australian Stock Exchange (ASX) by the middle of next year, states The National Business Review.

The listing is expected to open up a new pool of capital as the company looks to grow its market share of electronic point-of-sale and payment systems. Already, Smartpay provides direct payment equipment to about 15% of the taxi industry in Australia.

Smartpay managing director Ian Bailey says the Australian market was opening up as a result of banking changes and the need to replace many of the 600 000 electronic payment terminals in use.

China Unicom, the country's second largest wireless operator, has signed a strategic agreement with Industrial Bank, targeting at cooperation in mobile payment and mobile banking services, states TMCnet.

Li Renjie, president of the Industrial Bank says the cooperation will drive the bank's services in mobile payment and banking.

Mobile payment services have been in hot pursuit in recent years as the country embraces increasing number of mobile users, the report says. In November 2008, China Unicom had signed a deal with China UnionPay to develop business in financial payment and telecom services.