Ajay Banga calls cash “the dirtiest secret of the modern economy” in a speech at the Wharton Leadership Conference.
As a company that provides financial technology solutions to a wide variety of enterprises, our passion is in finding ways to eliminate the inefficiencies that come with the manual processing of paper (invoices, POs, shipping notices, etc.). When I came across the recent knowledge@wharton article, “MasterCard’s Ajay Banga: Why ‘Yes, If’ Is More Powerful than Saying No,” I found his perspective on paper insightful.
Banga, the CEO of MasterCard, spoke at the recent Wharton Leadership Conference about his goal of creating a world beyond cash. Where most would assume that MasterCard’s major competitors would include Visa, American Express, Discover, even PayPal; the reality is that, incredibly, 85% of all global purchases are in cash or checks! That number is still a substantial 50% in the U.S.
So although Banga still addresses the usual suspects when it comes to competition in the credit card market, he’s really setting his sights on what he calls, “the dirtiest secret of the modern economy.” He makes the point that cash belongs to a 200-year-old economy and is extremely costly; putting the cost of printing, producing, and distributing cash at 1.5% of global GDP. His goal is to change the way the world pays for goods and services.
For the complete article, please visit blog.corcentric.com.