Following demonetisation, digital transactions have received a push with traders and merchants in Mysuru making the switch from cash in a big way.
A survey by payment firm Paytm indicated that there are at least 5,000 vendors in the Mysuru region who have switched to the app payment system. This came to the fore at a one-day Digi Dhan Mela held in the city on Friday, where representatives of nearly 50 organisations, including public and private sector banks and payment companies such as Paytm, participated to give a push to digital transactions and clear misconceptions about it.
A Paytm spokesperson said there has been a three-fold increase in the company’s growth in the days following demonetisation, and this trend has been witnessed across the country. A merchant survey indicated that transactions in Tier I and II cities accounted for almost 50% of the total transactions, as the process is free and does not entail payment of rental for PoS machines.
Officials believe the decline in cash transactions is also expected to cause a surge in download of e-wallets such as Paytm, Bharat Interface for Money (BHIM), State Bank Buddy, etc., particularly in the hinterland.
Boon for banks
For the banks, the shift to electronic transaction has been a major respite as digital payment is not just about electronic transfer of money but also a means to reduce cost of transaction.
Rangaswamy, GDM, zonal office, Corporation Bank, said an over-the-counter physical transaction at the branch entails an expenditure of ₹45 per customer; it is just ₹5 for electronic transactions. “So digital transactions not only reduce footfall in branches but also saves time. The bank’s manpower can be effectively deployed in core areas of business development than be wasted on routine transactions.”
Even the regional rural banks have been quick in technology adoption, as indicated by the Kaveri Grameena Bank, which has its own digital payment app. “Our business correspondents are popularising [electronic transactions] in rural areas and people are finding it convenient ...,” said Mr. Boregowda, financial literacy counsellor of the bank.
