New Delhi: Black money has been a pressing concern in India for years and to curb that matter, Prime Minister Narendra Modi made one of his boldest moves yet by demonetizing the Rs 500 and Rs 1000 notes.
The entire nation was shocked after the announcement was made, but later, was all praises for PM Modi for his actions against black money.
Money laundering is rampant as hoarders wish to convert black money to gold or new currency and demonetisation has hit those hoarding bags of cash hard. At the same time, the note ban has hastened the digitisation of the financial economy and financial inclusion.
People have begun to resort to online payments with the help of payment apps and/or e-wallets, which needless to say, are experiencing a booming business ever since demonetisation came into effect.
At this time, when people are facing a cash crunch with long queues at ATM’s and banks, the concept of e-wallets and other payment apps are proving to be a huge boon for them, not to mention raking in the moolah themselves.
Convenience is the name of the game right now and payment apps are providing people with exactly that. Below, check out five major advantages of e-wallets and payment apps post demonetization.
1. Users of digital wallet companies can easily transfer money from their mobile wallets to any bank account at a zero percent fee till December 30, 2016, as compared to 4 percent for a non-KYC compliant user and 1 percent for a KYC compliant user.
2. E-wallets offer you the convenience of payments without swiping your card. Be it groceries, cabs, auto-rickshaws, clothes, etc., anything can be paid for by way if e-wallets. After demonetization, many vegetable and fruit sellers have started using the e-wallet option for easy and quick payment.
3. They offer a transfer to bank account option as well. The balance in your Paytm wallet, for example, can be transferred to your bank account whenever you want to. All it takes is a meagre 1-2% of the transaction amount. This ensures Instant Cash availability and renders seamless mobility.
4. You no longer have to bear the pressures of cash-on-delivery. While many believe the CoD option is convenient, many people have admittedly faced the problem of not being available when the delivery man rings the bell. This is where the e-wallet option comes in. Post demonetisation, the CoD option was immediately halted. All the online firms / retailers stopped logistic operations of those customers who had opted for cash on delivery. This has led the way to payment through e-wallets.
5. It is easily accessible and considerably speeds up the ‘checkout’ process without any hassle. Let’s face it and admit that not everyone is patient enough to stand in line, waiting while the customer in front of you pays up for their goods. Everybody likes a quick service and more customers are willing to return if they don’t have to wait for long. This is enormously beneficial for businesses because it doesn’t just save time, but can also directly increase profits by allowing them to accommodate more customers in the same period of time.