A recent report says that the Indian digital payments industry is projected to reach $500 billion by the year 2020, contributing a whopping 15% to India’s GDP. Many payment firms and Fintech affiliates used demonetization as the stepping stone towards better capturing of the market and reaching the relevant group. To further expand the market, several companies offer attractive offers, discounts, and loyalty credits. These offers are alluring for people to make more digital payments and less cash-based. These offers may or may not last long but this definitely posed as the reason that got them hugely interested in digital wallets and payments.
Digital Payments are here to stay owing to the usability of the internet and mobile phones in the world. The immediate trigger to the adoption of digital payments could come from relatively slow adopters such as the rural economy and the small and medium-sized enterprises (SME) sector. Many government triggers are additionally towards a technologically backed economy like the GST payments, ECS mandates, P2G etc.
Digital payments were obviously considered to be for the elite but now the trend is changing. More and more people are moving towards digitization. This is a brilliant endeavor.
It is important to know why you exactly should like and use cashless payments and then refer the same to your peer group. Nobody likes to carry paper money in their pockets anymore. It’s like as fluid as possible.
Read More: Security Concerns of Digital Wallets
Let’s have a look at the top 3 major reasons to adopt digital payments over cash/physical money so to say:
This is the primary most reason for people to think why digital payments should be accepted irrespective of any flaws that digital transactions may have. This is the reason why people are gradually shifting to it. No need to follow long queues for cash and no need to worry about physical money in your wallet.
It is believed that digital money is way safer than physical money. It is safer to pay digitally than carrying cash which can turn out cumbersome. Also, it has chances of getting stolen/scraped/lost etc. If at all the payment methods are safe, it is easier to rely upon anything and everything. There is a strategy to block cards or wallet in case of any kind of threats.
- Proportionate spending
You can always have a track of how much has been spent in a particular transaction. And these records stay so one can always go back and check. This will also help to cut on unnecessary costs. A lot of whimsical spending takes place in cash payments.
Cash has always been the favorite form of payments in India through the years and remains so in the year 2017 as well. But with the spiked up acceptance of digital wallets, cashless transactions have become common. All socioeconomic classes are inclined to use it nowadays. The customer base is just expanding without any limits!