Digital wallets, credit/debit cards usage peaks due to demonetization

The government’s bold decision of scraping off the Rs 500 and Rs 1000 currency notes has come as a bonanza for credit/debit cards companies and digital payment solutions startups. Being in a cash crunch situation, thousands of people resorted to digital transactions who otherwise felt that cash was the safest option. After a sluggishly moving graph chart, considerable growth has been witnessed in the usage of digital payments as people are now seen downloading these apps and refilling their digital wallets on a large scale. They are using digital wallets for payments of their daily necessities and basic conveniences.

Well-known players like Paytm and Mobikwik are increasing their prominence in local karyana and grocery shops as well. Both these companies have scored high with their payment transactions post 8th November. While Paytm had 5 million payment transactions a day, and 700 percent increase in traffic, MobiKwik is expected to record an 18X increase in overall transactions, and approx. 2000 percent increase in the addition of money and transaction value. It claims to have a 100% growth in a number of customers in the last few days. Paytm made an addition of one million new saved credit/debit cards – the cards used for refilling the digital wallets.

HDFC promoted Mobile payment app Chillr, has also witnessed a growth rate of 30% in app usage and approximately 50% increase in downloads.

Further, the situation holds a big opportunity for all the digital payment solutions venture as now they are focusing on getting people to shop offline also rather than just making online purchases. So, when you next visit Café Coffee Day or KFC or M&S, you can use the digit wallet on your phone to make payment for the purchases.

The debit card usage numbers also changed impressively. Initially, a major chunk of the population just used their debit card to withdraw cash from the ATM and was even unaware of the fact that it can be used to payment payments. But now the time has come when people have started using it as a major payment instrument.

Thus, the m-wallet providers and debit/credit card users can be seen as the immediate beneficiaries of this policy change. It has given a big boost to digital payment and debit/credit card business who are expecting a huge impact on the payments volume. This enhanced usage of digital currency and payment system will lead to increased transparency and will pave the way ahead for payment tech firms to come with best possible products and services matching the requirements of all classes of people.


By: Silky Malhotra

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