why Trade Minister Fran\u00e7ois-Philippe Champagne launched Invest in Canada<\/a>, an agency whose mandate is to ensure Canada isn\u2019t an afterthought for executives like Takhar.<\/p>\nPaytm arrived when Trudeau was leading the third party in Parliament; still, the prime minister surely will appreciate a break from hearing that his tax policies are driving entrepreneurs out of the country. He might even like evidence that at least one prominent Indian firm is sticking with Canada, despite the negativity that pervaded his trip to that emerging economic power in February.<\/p>\n
I was somewhat surprised when Takhar said he had few complaints about Canada\u2019s regulatory system. At a conference at the Rotman School of Management last month, there was lots of talk about cryptocurrencies and fintech, and the overwhelming opinion was that Canadian authorities were failing to keep up with the pace of change in the financial industry.<\/p>\n
Paytm so far only does payments, so maybe Takhar is spared the frustrations of those upstarts who want to take deposits, lend, or trade. He said he found that regulators were conscious of not getting too hung up on rules designed for another era. He said he needed the approval of only \u201cone or two\u201d authorities to launch his app in Canada, whereas in the U.S. he would have had to seek more than 40 separate licenses.<\/p>\n
\u201cCanada is a very good testing ground,\u201d Takhar said.<\/p>\n
He did have one negative thing to say about his new home: Takhar is \u201cappalled\u201d that in 2018 he can\u2019t risk going out in Toronto without cash in his pocket.<\/p>\n
You might expect the senior executive of a digital payments company to dislike Canada\u2019s stubborn refusal to give up its shiny coins and its pretty polymer notes.<\/p>\n
In Mumbai, for example, a shopper can use the Paytm app almost everywhere; the company\u2019s logo is about as pervasive as Mastercard and Visa stickers are here. But in Toronto, plenty of sellers don\u2019t even accept credit cards. The Bank of Canada reports that Canadians show no sign of quitting cash, which is one of the reasons policy makers feel little pressure to make a decision on whether they need to involve themselves with things such as cryptocurrencies.<\/p>\n
At that Rotman conference, Tiff Macklem, the school\u2019s dean and the former No. 2 at Canada\u2019s central bank, warned that authorities might not have as much time as they think to decide on digital finance. Platforms such as Airbnb and Uber were adopted astonishingly quickly. A company with a similarly good service or business plan could disrupt Canadian finance just as fast, Macklem said.<\/p>\n
Paytm, with all its experience and financial muscle, looks like it will be in the vanguard of those that try.<\/p>\n
Canada originally was meant to be a research hub. Then executives noticed that no one was trying to make it easier to pay bills. So they decided to build an app for Canada and see if an Indian fintech company could make money in North America. The rewards program is a bet that Canadians actually are attached to their points, not cash and credit cards.<\/p>\n
If the strategy works here, Paytm may try the U.S., although that\u2019s not a near-term goal. Takhar said his primary focus is Canada.<\/p>\n
\u201cIf I don\u2019t carry cash in my pocket in downtown Toronto, I think we will have done a very good job for this country and its people,\u201d he said.<\/p>\n
And when might that occur? \u201cMy personal goal, less than two years,\u201d he said. \u201cIn 2019, I should not carry cash in Toronto.\u201d<\/p>\n
\u2022 Email: kcarmichael@nationalpost.com<\/a> | Twitter: