State-backed rivals force India's e-payment firms to step up

Electronic payment culture: A Sadhu holy man pays the vendor through Paytm, a digital wallet company, after buying a book during the annual religious festival of Magh Mela in Allahabad, India.

MUMBAI: Electronic payment firms got a big boost when India abolished most of the country's banknotes last year, but rival state-sponsored e-payment services are forcing them to raise their game to hang on to their new customers.

Until November's move, which scrapped 86% of all notes to foil counterfeiting and the black market, more than 90% of transactions in India were in cash.