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The world of digital payments in India just took a major leap! PayPal and HDFC Bank-backed Mintoak have made history by completing India’s first acquisition in the central bank digital currency (CBDC) or the e-rupee space. The startup has bought Digiledge, a company specializing in CBDC and bill payments, in a deal worth $3.5 million. But what does this mean for India’s digital future? Let’s break it down in a simple and engaging way.
Imagine if the Indian rupee had a digital twin – a version of the same money, but without the need for physical notes and coins. That’s what the e-rupee, or CBDC (Central Bank Digital Currency), is! It’s issued by the Reserve Bank of India (RBI) and is designed to work just like regular cash but in a digital format. You can store it in a digital wallet and use it to make payments, just like you would with UPI or Paytm, but with one major difference – it is directly backed by the RBI, making it more secure and reliable.
Mintoak, a startup that helps banks provide digital payment services to businesses, has just acquired Digiledge, a company known for its expertise in CBDC and bill payments. This is India’s first-ever acquisition in the e-rupee space, making it a landmark moment in the country’s financial technology evolution.
Mintoak already works with some of India’s biggest banks, including HDFC Bank, Axis Bank, and SBI. With this acquisition, these banks can now offer even better CBDC-related payment solutions to their customers.
For example, imagine a small shopkeeper in Varanasi or a street vendor in Mumbai – they could now accept e-rupee payments without the need for an internet connection, making transactions faster and more secure.
With fintech giants like Google Pay, PhonePe, and Amazon Pay looking to join the CBDC movement, the e-rupee is set to become a game-changer in India’s financial landscape. In January, Cred and MobiKwik became the first fintech platforms to offer e-rupee transactions. Now, with Mintoak’s acquisition of Digiledge, the race to revolutionize India’s digital economy has truly begun.
India has always been a pioneer in digital payments, and the e-rupee is the next big step in this journey. With the government and fintech companies working together, we might soon see a future where cash is no longer necessary, and digital transactions rule the financial world.
So, are you ready to embrace the e-rupee revolution? Keep an eye on the fintech space – exciting times are ahead!
Authored by, Amay Mathur | Senior Editor
Amay Mathur is a business news reporter at Chegg.com. He previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. His areas of coverage encompass tech, business, strategy, finance, and even space. He is a Columbia University graduate.
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