Go Cashless with CashFat!
As you are aware by now, the old Rs. 500 and Rs. 2000 notes are no longer valid. The Indian government has embarked on a demonetization program to strike at the heart of the Black Money Economy. There has been a concerted push to curb the hoarding of black money.
At CashFat, we applaud this decision taken by Prime Minister Narendra Modi. We think this move will make India more of a cashless economy, where most of the transactions are carried through debit cards and credit cards. This is also a great boost for online shopping and ecommerce companies.
Companies like Paytm have been at the forefront of the fight to eliminate the need for cash. From small businesses and traders to vegetable vendors and tea sellers, everyone in India is adjusting to the new cashless economy. We realize that the transition is still a difficult one, but every Indian has been making an effort, for the welfare of the country and for a better future.
There is no question that there is currently a cash shortage in India, which is why you should make an effort to move to go cashless. The first thing you should do is to apply for a debit card or credit card – if you haven’t got one already. Then you can make use of digital wallets such as Paytm, MobiKwik, Freecharge and PayUMoney, to name a few. This will simplify a lot of things for you.
But more than anything you will need to change your approach. When do you need cash most? You need cash when you’re buying grocery items, electronics, clothes and more. Cash is the most important part of all transactions done offline.
When you order something online, you have the option of Cash On Delivery (COD) or paying by credit card or debit card. If you choose COD, you will have to keep the cash ready with you when accepting the delivery at home. This can be problematic as you may not always have cash with you.
If you pay by credit card or debit card, the item is delivered at your doorstep and there’s no reason to worry about paying anything when the item is delivered to you. It is a painless process and a stress free one. All you need to do is to collect the item when it’s delivered at your doorstep.
Now, with the demonetization of Rs 500 and Rs 1000 currencies, a lot of people are choosing to pay for their online shopping by credit or debit card, by digital wallets and even by internet banking.
Eventually, this will change the face of online shopping in India. As of now, 60 percent of online transactions are done using the cash-on-delivery option. We expect the demonetization launched by the government to bring this figure down substantially. In fact, in the near future, we expect a major part of online shopping to be based on credit card or debit card, and not on cash.
This is very much beneficial for ecommerce companies as they had been struggling to handle the risk and extra costs of dealing with cash. COD transactions were often problematic and getting cash posed a challenge on many occasions.