Did you rush to the ATM last evening? Were you glued to news channels? Were you pondering on how would you spend a cashless day?
Indians experienced the biggest shocker last evening, when the Indian Prime Minister Narendra Modi announced, all currency denominations of Rs 500 and Rs 1000 would no longer be considered as legal tenders to make transactions and would be phased out, effective 9th November 2016.
The over-night move will impact all businesses offline and online. While the real estate, vendors, kiosk-sellers, wholesalers, small traders and others who earn their livelihood in cash would have an immediate and a greater impact, the digital world is likely to experience a positive turn during the period of demonetization.
Here’s what Marketers need to know and leverage the right digital approach that caters to their audience.
COD on ecommerce sites would minimize: Whether the orders opted for cash on delivery, would be cancelled or ecomm sites would provide alternatives, remains a question. However, more and more customers would be placing orders through cards and netbanking. The number of buyers would also increase gradually.
Transaction over Debit cards will increase: Despite having more than 697 million cards in circulation in India, the usage of these cards has been low. People would now preserve Rs 100 notes for smaller and day-to-day transactions and debit cards would be used to pay for higher value transactions.
Mobile wallets would have greater amounts deposited: In order to avoid end moment payment hassles and for a better convenience, people would load their wallets and chose to go digital. Soon after the announcements, an online recharge platform, Paytm tweeted “We just have two words for you: Paytm Karo” and people have already started doing it.
App-based travel services would see an increase in customers as well as online payments. Travellers would prefer saving hard cash and opt for online payments. The ease and convenience is a plus.
The National Payments Corporation of India (NPCI) will have to speed up adoption of the Unified Payments Interface (UPI) over the coming months to make sure that there are more banks on the payments platform.
Marketers, you have the real shot in the arm. Your customer would probably spend a cashless day, however, she would shell out enough money doing online transactions either by netbanking or wallets or debit cards – travel, food, bill payments, shopping and every next thing. The way customers are using digital mediums has changed tremendously and probably after a few hiccups, they’re also getting comfortable making online payments. With the comfort level set in, digital mediums transforming into a means of payment is only natural, and it’ll be a gradual process. It’s about time to go DIGITAL!
Check out what industry stalwarts in the digital world have to say on the surprising move and share in your thoughts in the comments section.