Digital transaction surges post demonetisation, 48% shoppers moved from CoD to prepaid orders: Survey

Post demonetisation, there has been a spike in the digital mode of payment. According to a survey by Ratan Tata-backed CashKaro.com, about 48 percent of shoppers have moved from cash on delivery (CoD) to prepaid orders.

The survey stated that 54 per cent of shoppers use debit/credit cards for online shopping while 30 per cent of them prefer mobile wallets and 6 per cent shoppers transact via net banking and UPI.

Rohan Bhargava, co-founder of CashKaro.com said, “After seeing the positive response from the citizens post-demonetisation, people are getting more aware of the cashless payments.”

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Paytm, which runs a mobile wallet, payments bank, and e-commerce platform, said that post demonetisation, it has gained a lot of popularity for digital transactions and almost everybody uses this platform. It has witnessed more than 3.5-times surge in payment transactions.

"We strongly believe convenience is the biggest factor to drive adoption for any new form of technology... Currently, less than one per cent of all orders on Paytm Mall are cash-based," said Kiran Vasireddy, COO, Paytm talking to The Economic Times.

According to Amazon, in order to encourage digital payments, they have taken some measures by providing point of sale (POS) machine to every delivery boy and also introduced its own prepaid wallet (Amazon Pay Balance).

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One of the Amazon spokespersons said that the company has been able to successfully reduced CoD share as compared to the pre-demonetisation period.

ShopClues said that there was a huge spike in the digital transaction in February when only 10 percent shoppers have opted for the CoD option. However, since then, there has been a surge in CoD orders with those now standing at around 60 per cent.

Mobile wallet company MobiKwik said that the transactions on a daily basis on their platform has increased from 1.5 million to 3 million post-demonetisation.