BOOM

Trending Searches

    SUPPORT
    BOOM

    Trending News

      • Fact Check 
        • Fast Check
        • Politics
        • Business
        • Entertainment
        • Social
        • Sports
        • World
      • Law
      • Explainers
      • News 
        • All News
      • Decode 
        • Impact
        • Scamcheck
        • Life
        • Voices
      • Media Buddhi 
        • Digital Buddhi
        • Senior Citizens
        • Videos
      • Web Stories
      • BOOM Research
      • BOOM Labs
      • Deepfake Tracker
      • Videos 
        • Facts Neeti
      • Home-icon
        Home
      • About Us-icon
        About Us
      • Authors-icon
        Authors
      • Team-icon
        Team
      • Careers-icon
        Careers
      • Internship-icon
        Internship
      • Contact Us-icon
        Contact Us
      • Methodology-icon
        Methodology
      • Correction Policy-icon
        Correction Policy
      • Non-Partnership Policy-icon
        Non-Partnership Policy
      • Cookie Policy-icon
        Cookie Policy
      • Grievance Redressal-icon
        Grievance Redressal
      • Republishing Guidelines-icon
        Republishing Guidelines
      • Fact Check-icon
        Fact Check
        Fast Check
        Politics
        Business
        Entertainment
        Social
        Sports
        World
      • Law-icon
        Law
      • Explainers-icon
        Explainers
      • News-icon
        News
        All News
      • Decode-icon
        Decode
        Impact
        Scamcheck
        Life
        Voices
      • Media Buddhi-icon
        Media Buddhi
        Digital Buddhi
        Senior Citizens
        Videos
      • Web Stories-icon
        Web Stories
      • BOOM Research-icon
        BOOM Research
      • BOOM Labs-icon
        BOOM Labs
      • Deepfake Tracker-icon
        Deepfake Tracker
      • Videos-icon
        Videos
        Facts Neeti
      Trending Tags
      TRENDING
      • #Operation Sindoor
      • #Pahalgam Terror Attack
      • #Narendra Modi
      • #Rahul Gandhi
      • #Waqf Amendment Bill
      • #Arvind Kejriwal
      • #Deepfake
      • #Artificial Intelligence
      • Home
      • Business
      • India To See Huge Migration To...
      Business

      India To See Huge Migration To Cashless Payments

      By - Farhan P Sharf |
      Published -  10 Jun 2016 8:22 PM IST
    • Boomlive

      mobile bank

      With the sales of smartphones shooting up day by day and with increasing awareness about the advantages of cashless transactions, the dawn of a cashless society is not too far.

      Developments triggered by technology in payment and settlement systems have been significant in recent years. There has been a spike in cashless transactions with the advent of technology.

      Finance Minister, Arun Jaitley, in his budget speech had talked about making India a cashless society- a society where use of cash is replaced by use of credit cards, charge cards, cheques or wireless communication payments made from smartphones.

      Data from Reserve Bank of India reveals that the value of mobile banking transactions jumped 46% to Rs 49,029 crore in December, 2015 from the previous month. State Bank of India, leads mobile banking transactions with over 1.5 crore mobile transactions in December 2015. The data unveils that SBI constitutes 38% of the mobile banking transactions in India which collectively amounts to Rs 17.6 crore.

      So what is the reason for the surge in mobile banking transactions? The smartphone mania that has swept the subcontinent can be attributed as the major reason for the spurt in mobile transactions.

      Banks are increasingly encouraging customers to manage their finances using mobile phones. This simplifies the process for both the parties - banks as well as customers.

      The card scheme with its ubiquitous acceptance network has paved way for widespread online transactions too. Rajesh Prasad, VP and Head at Rupay, NPCI, speaking at a Philip Capital event that focussed on rural economy powering India’s growth says, “ India will continue to see card-based transactions for some more time. Some areas in card-based transactions are still untapped.”

      Another format of electronic transactions that has taken of are payments made through Electronic Clearing Service (ECS) rather than by cash. Cashless payment system debits the exact bill amount without any extra cost making it easier and quicker for the consumers.

      Even in the e-commerce space, there is a rise in number of consumers willing to do cashless transactions though cash-on-delivery was the preferred mode of transaction earlier. The role of reward points and discounts in attracting consumers can’t be neglected either.

      Though cashless transaction has its own share of advantages, credit card penetration is still low. The lack of infrastructure in the hands of the retailers and service providers who belong to the informal sector wards off consumers from paying by credit or debit cards.The benefit of cashless transactions is still not evident to those who have credit cards. It has not been able to overcome the belief that having cash gives an upper-hand in negotiation.

      Another challenge is that cash and card users fear of being charged more if they use cards for transactions. Ignorance about the benefits of credit cards is another hindrance in embracing cashless transactions.

      However with the sales of smartphones shooting up day by day and with increasing awareness about the advantages of cashless transactions, the dawn of a cashless society is not too far.

      Tags

      BankingE-commerceeconomyMobileOnlineTransactions
      Read Full Article
      Next Story
      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker. Please reload after ad blocker is disabled.
      X

      Subscribe to BOOM Newsletters

      👉 No spam, no paywall — but verified insights.

      Please enter a Email Address
      Subscribe for free!

      Stay Ahead of Misinformation!

      Please enter a Email Address
      Subscribe Now🛡️ 100% Privacy Protected | No Spam, Just Facts
      By subscribing, you agree with the Terms & conditions and Privacy Policy connected to the offer

      Thank you for subscribing!

      You’re now part of the BOOM community.

      Or, Subscribe to receive latest news via email
      Subscribed Successfully...
      Copy HTMLHTML is copied!
      There's no data to copy!