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Hi Roostar, Not sure of the exact nature of the next catalyst...

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    Hi Roostar,

    Not sure of the exact nature of the next catalyst but this has come from Gary after recent conversations over email in relation to a few news articles

    http://www.pymnts.com/cash/2017/cash-usage-india-post-demonetization/

    http://www.news18.com/news/business/india-finding-it-hard-to-end-love-affair-with-cash-1395789.html

    There has recently been a number of media articles about the rebounding of the cash economy since Modi Government policy changes – that as expected, would have a short term impact on cash circulation, banks, institutions and TSI as we have advised the market.

    Whilst I am unable to give you specific information, I can advise that TSI India is a big believer of cash in India and continues discussions on inorganic growth and potential consolidation in the Indian ATM market – we have touched on this in our announcements. I can advise the Mohnish and Deepak (CFO) are keen to ensure continued growth of TSI India’s portfolio in this area.

    Some commentary on the articles above:
    1. India keep physical currency – it seems to be in their DNA that cash is the main form of payment.  e.g. most Indian’s still settle a portion of housing/land/building purchases in cash.
    2. Modi’s war on black money has increased the confidence of Indian’s in that there is less and less fake currency – therefore using cash is even a greater safety option
    3. Fees and charges by banks, credit card companies, institutions does not occur when you pay cash – shop keepers, etc give a discount if you pay cash as they are not hit with bank fees. The shop keeper then takes that cash and uses it in the same manner e.g. to purchase goods at a discount because cash is more preferable than credit card/debit card POS transactions.
    4. To add to the above 90% of shop keepers can only accept cash.
    5. $US35.2 billion withdrawn in March – cash shows no sign of slowing down
    6. From December 2016 to February 2017 digital transactions declined 20%
    7. Indian consumer have a lack of interest in using mobile for digital payments – they do not want to provide their personal information – yet western countries readlily do it and where do the cyber attacks occur?? Western countries mainly, given the available personal information.
    8. Economist Nirupama Soundararajan believes India will never become a cashless society – in fact she believes cash usage is bound to increase as more people gain access to financial services.
    9. Cash in India is expected to grow 11.9 CAGR through to 2020
 
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