Payment using cards goes up

Use of credit or debit cards has gone up at hotels and restaurants in the city in the last one week and some of these establishments are looking at offering pre-loaded cards too for regular customers.

Coimbatore District Hotels Association president R. Srinivasan says that after the demonetisation, hotels and restaurants have seen nearly 30 per cent drop in business in the last three days.

When citizens withdraw money, priority is to pay for essentials such as house rent, school fees, or bank loans. Further, they will take time to adopt to any new system.

“We expect the situation to turn normal in another week,” he says. Coimbatore district has nearly 600 hotels and 900 bakeries in the organised sector.

Restaurants and hotels are accepting card payment for small purchases too and this will become popular soon. There are many who come to the hotel in the morning for a cup of tea or coffee. Their bill will be relatively less. When there are different payment options for these customers too, the use of digital, online, or card payment will increase, he says. On expenses incurred by the hotels, he says that those who buy vegetables directly from the farmers are offering to pay by cheque and there is gradual acceptance.

There is no problem for these establishments in payment of wages to workers or for transport.