HDFC Banks Aditya Puri says no future in digital wallets

NEW DELHI: Aditya Puri, the Managing Director of HDFC Bank, has said he sees no future in digital wallets. Speaking to Puri was skeptical about this new trend in digital payments, which gained huge traction after demonetisation. 

After demonetisation, people have grabbed whatever is easily available to pay for coffee, bills, movie tickets, cab rides and just about anything, he said. However, as alternatives to cash payments evolve, users comfortable with mobile wallets today could shift to an easier digital platform, he added. 

Puri also mentioned Paytm, which he said could not be another Alibaba because its model could not be replicated. He said the current loss of Paytm was at Rs 1,600 crore. Experts say that in the long term, systems like UPI stand a better chance as they enable direct transfer from bank accounts.

Mobile wallets have gained popularity after demonetisation but as new digital payment options emerge, they may fade away as they have several limitations. For one, they are not interoperable. Transferring money requires sender and receiver to have the same company's account.