Prime Minister Narendra Modi dazed the entire nation with his sudden announcement of ‘Demonetization’. The decision to demonetize the 500 and 1000 Rs. currency note is one of the foremost step towards the abolition of black money and corruption the twin issues in India. This decision has increased cashless transactions.
People are turning to different online options which is snowballing the downloads of payment apps. There is an increasing use of online banking and payment mediums to handle the daily expenses.
With projects of, financial inclusion, digitization of the economy, and expanded utilization of advanced smart phones, online transactions are prevalent among the Indian populace.
Digital India and demonetization
Digitalization has been a noteworthy challenge in India, as many of us have favored executing in real money as opposed to making utilization of plastic money. With the demonetization, various digital payment solution providers have come up with ingenious approaches to pull in new clients. These digital wallets not just help in paying bills, but also empower payments at nearby stores already enlisted for these kinds of services. The significance being mobile wallets like Paytm witnessing a huge expansion in app download figures, and Ola Money sighted a massive increase in wallet recharges.
Linking Indians through digital media has been further revitalized by this proceed on the part of the government. The m-wallet (portable wallet) segment comprehensively comprises of services related to banking transactions, exchange of cash as well as value-added services like bill payments, shopping, ticketing, and so forth. Of these services, m-wallets are principally utilized for the money transfer trailed by the payment of bills.
Common man is going through tremendous hitches standing in long queues for the process of exchange and deposits in the wake of demonetization, there is no choice left as of now, but to pick cashless money options.
MobiKwik, having 35 million clients, said there was 100% growth in customer numbers day-on-day. Chillr, the mobile payment app already having 2 million downloads and promoted by HDFC, has seen an increase in application use and downloads. PayU’s computerized wallet business, which has more than 30 million users, saw the amount of wallet burdens rise two times in the initial two days. Paytm, the biggest Indian mobile payment wallet with more than 100 million users and 2 million transactions a day, saw an increase in the app downloads and payments for offline transactions in the initial phase of the demonetization declaration. It included one million new spared credit/check cards in two days – cards that are utilized to refill the wallet.
Amazon affirmed that it is suspending COD requests while Flipkart’s site says that cash orders above Rs 2000 are not empowered and has been requesting that clients choose another payment option.
Cabs services, Grocery Stores, Big Basket, Amazon, Snapdeal, Flipkart, ebay, are going digital and the list is endless now.
If you stroll into a McDonald’s or Cafe Coffee Day or Shopper’s Stop today, you can utilize a digital wallet on your mobile to pay for your purchase. To surmount the challenges posed by the currency ban, offline retailers are giving their consumers numerous payment solutions and alternatives to avoid interruptions in purchases. As Indians are getting used to digital money, their trust in anything on the online and mobile will get a major lift.
Tea stalls are using Paytm. Ola Cabs have come out with an option of Ola Money. This is beneficial for common man at this point of time when there is crunch of change.
Lack of proper infrastructure was the major road block for the vision of Digital India which has been cleared to the maximum extent with the launch of 4G internet. Mobile is becoming the point of purchase and sale which will lessen up the digital divide between the rural and urban India along with drawing the population into the financial inclusion. The demonetization is a good move for the IT sector.
Demonetization is the best thing to happen to India’s emerging online finance industry and haul its obsolete economy into the 21st century.Three cheers for a bold, and game-changing action.
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“Digitalization has been a noteworthy challenge in India, as many of us have favored executing in real money as opposed to making utilization of plastic money” This is a realistic point showcasing today’s situation in the market. Thanks for pointing out this issue.