E-wallet apps and digital payment mediums witnessed an over 200% surge after demonetization in India.
(CCM) — Digital pay mediums have surged in response to the fight against “black money menace,” or money earned on the black market. The initiative, launched by the Indian government, sought to demonetize bills of 500 and 1,000 rupees — which represents around 86% of the total money on the market. Because of the sudden announcement, many Indians have been left with just few bills in hand and are struggling to withdraw money from ATMs and banks. To relieve some of the tension, major economy reformists are pushing the use of digital wallet and plastic money, such as credit and debit cards, causing e-wallet start-ups, like Paytm, PauU India, MobiKwik, Freecharge, to experience surges in transactions the likes of 250% with increases in traffic sometimes more than quadroupling. Freecharge has also claimed that the average wallet balance has increased 12 times since the announcement.
To help customers, these online wallet companies are also joining hands with the small retailers and supermarket owners to provide digital payment solutions. Following the cash crunch in the retail market, it has also begun to come up with attractive zero down payment options for customers. Before, customers had to make 20-30% of a given payment in cash in order to be eligible for monthly installment payment options for expensive products.
Image: © Ti_ser - Shutterstock.com