It has been a year since the Government of India implemented the most extreme measure to curb corruption and black money.
On November 8, 2016, Prime Minister Narendra Modi announced that all Rs 500 and Rs 1000 notes would be invalid after midnight. This phenomenon that is popularly known as Demonetisation has had many impacts.
A year after Demonetisation, CashKaro.com – India’s largest Cashback & Coupons has done a survey to analyze the ‘Impact of Demonetisation a year after.
The survey saw participation from over 2000 people across India and respondents were divided on their opinion over Demonetisation.
While 49% said Demonetisation was a success, 38% thought it was a failure. However, 90% of the respondents said they prefer paying online post Demonetisation.
Among those who now prefer paying online, 54% pay via debit/credit cards, 30% pay via wallets like Paytm, Freecharge, MobiKwik etc., and 6% use NetBanking and UPI. Interestingly, 80% of the respondents claimed that they have introduced either their family or friends to cashless payments post Demonetisation.
Also Read: How to Make Money Online in India
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 that, “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.”
45% agreed that their shopping habits 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. Here’s a look at the breakup of the different online payment modes that respondents introduced their family and friends to:
Mobile Wallets (Paytm, MobiKwik etc.) – 29%
Credit/Debit Cards – 19%
NetBanking – 6%
All the above – 25%
Prepaid Orders are now more popular than Cash on Delivery orders.
47% of the respondents have switched from CoD to Prepaid Orders post Demonetisation
Debit/Credit Cards at the most favored mode of payment when shopping online followed by mobile wallets.
Debit/Credit Cards – 54%
Wallets (Paytm, MobiKwik etc.) – 30%
Cash on Delivery (CoD) – 10%
NetBanking – 6%
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.
Also, Rahul Garg, CEO & Founder, Moglix (which offers GreenGST, a SAAS-based solution to help enterprises make their supply chains 100% GST compliant) shared his Views with Bizztor on post demonitisation effects on startups.
“The policy of demonetization, at this time last year, had given a much-needed digital push to our economy. It was a preparing ground for the reform of One Country, One Tax (GST) and a boost to the government’s Digital India.
The reform has evaded the unorganized players in the market pushed the organized players to meet the trends of digital consumption. Consumers in both B2C and B2B space are more digital savvy and opting for hassle-free methods of transaction. Digital technology and digital-based governance are now taking a forefront.
Post demonetization, Moglix has successfully on-boarded several wholesalers to go digital and most importantly the government made a strong policy that evasion of tax is no longer going to be easy.”