“First they ignore you, then they laugh at you, then they fight you, then you win.” This is somewhat similar to what the payments and on a broader level the entire Fintech industry in India is feeling right now. The demonetization of the Rs 500 & Rs 1000 notes is turning out to be a huge positive in the movement towards a cashless economy. Fintech organizations especially those facilitating e-payments via payment gateway integration and wallets are now turning out to be the saviors of those running out of cash.
When it comes to payments, Cash has been the King in India. But with the historic move to ban Rs500 and Rs1000 currency notes, a unique opportunity has come up to change the consumer behavior. The biggest payment method which is cash has been some what eliminated within one stroke by the Prime Minister. Major eCommerce players have already started to remove Cash On Delivery option from their portals. This has given us, the payments solution providers a chance to make customers more comfortable with online payments and gradually make it a preferred method of transaction.
“We need to understand that despite the advent of digital payments service providers and mobile wallets, India has predominantly been a cash-dependent economy. While recognizing the challenges, we favor to move by the government, since it is essentially meant to curb black money. Besides, we certainly believe that the move to ban Rs500 and Rs1000 will inspire and urge more users to opt for digital payments, since they are immune to money laundering and other harms that cash is inherently susceptible to. Within 24 hours of this announcement our transactions have dramatically increased to 85%. Besides, new merchants are also opening to the idea of cashless economy, since the enquiries by merchants have increased by 50%. While our average daily transactions amount to 12 lakhs daily, we are anticipating the same to increase by 25 lakhs in the upcoming months” – Amrish Rau, CEO, PayU India
A lot of people were already aware but reluctant to try online payments have now started giving it a try. Customers are now using our online platform not just for cab bookings but for a plethora of other use cases. We support startups in their online payments collection need across a varied list of business categories like entertainment, shopping, food & grocery, lifestyle, travel and much more. Leading the charge for online payments as a market leader, this is indeed the most exciting times for us. Our role has now become critical in the transformation of India.