2016 Indian Banknote Demonetisation: Noteban Pushed People For Digital Economy
Even after one year of demonetization, people stand divided with their views if it did any good to the economy or not. But one thing it has surely done is push consumers towards digital economy.
Through a survey, Cashkaro.com analysed the impact of demonetisation on the online spending behavior of the consumer post- demonetization. While 49 percent said Demonetisation was a success, 38 percent thought it was a failure. However, 90 percent of the respondents said they prefer paying online post- demonetisation.
Among those who now prefer paying online, 54 percent pay via debit/credit cards, 30 percent pay via wallets like Paytm, Freecharge, MobiKwik etc., and 6 percent use net banking and UPI. Interestingly, 80 percent of the people claimed that they have introduced either their family or friends to cashless payments post demonetisation. Most respondents introduced shoppers to wallet based payment. The ease of use and instant money transfers facilitated by mobile wallets has made them a popular mode of payment.
Speaking on the impact of demonetisation, Rohan Bhargava, co-founder CashKaro.com said, “The overall impact of demonetisation has been positive as people have renewed faith in cashless payments. CashKaro too saw a small dip in traffic right after demonetisation but, things normalized soon after and we actually saw a growth in transactions.”
Shopping habits of 45 percent people have been affected due to demonetisation. Online Payments have seen a huge growth. This can be attributed to how quickly people adopted cashless payment modes. Prepaid Orders are now more popular than Cash on Delivery orders; 47 percent of the respondents have switched from cash on delivery (CoD) to Prepaid Orders post demonetisation
Overall the impact of Demonetisation on online shopping has been positive as more and more people have chosen cashless payments modes. This has helped many brands in establishing customer faith.
Rajat Gandhi Founder & CEO, Faircent.com said, “Consumers have become more comfortable with online services after demonetisation. For a country with a large unbanked population, the alternative financial services ecosystem has come as a big boon. Customers, who were previously left underserved or un-served by the traditional banks, now have an instant, hassle-free and accessible solution at the tap of a key.”
