India’s new cashless system, where citizens can buy online with cash, is showing signs of popularity among consumers.
With the country still recovering from the shock of demonetisation and the resultant financial woes, a cashless society is also beginning to flourish, with shoppers finding online vendors to source the latest fashion and fashion accessories, as well as cheap footwear and clothing.
Cashless shoppers say the digital currency, which is linked to a digital wallet, is making it easier to pay for everything.
“This is an incredibly fast and simple payment method,” said Rupa Kaur, who works as a salesperson for the clothing wholesale firm, Chandni.
“People have become more aware of digital currencies and how they can help them with transactions.”
While the move is welcomed by consumers, there are fears that the move may hurt the economy as retailers lose their ability to generate revenue from online sales.
For now, it is unclear whether the digital payments will have a big impact on India’s overall economy, but Kaur is hopeful.
“I think that the shift has been positive for the country,” she said.
“But it is too early to say that this will have the desired impact on the economy.”
India has the world’s third-largest population, and its economy is expected to grow by around 7% this year, according to the World Bank.
But the cashless era has not been without controversy.
In September, a local court in the southern city of Hyderabad ruled that the digital transactions were illegal.
The ruling came on the heels of an Indian court ordering the closure of a bitcoin wallet in December, which was later allowed to remain open.
A series of protests have also been staged in cities across the country to demand the government ban the currency.
In December, the Indian government issued a warning to consumers against using the digital currencies, which they said could pose risks to the country’s financial system.
While cash is still the most popular form of payment in India, Kaur believes that more people are using online platforms like Flipkart, Amazon and PayPal.
“We are seeing more and more people switching to digital currencies.
We are seeing a lot more merchants accepting these digital currencies,” she explained.”
People are getting more comfortable with them.”
In addition to the cash system, shoppers have also become more adept at using smartphones to buy clothes online, which has led to a rise in online sales as well.
“They are using mobile devices to buy goods,” said Kaur.
“It is a lot easier than the traditional way.”
“People have used smartphones to shop online for a long time,” she added.
“They are not using them anymore.”
For the past few years, India has seen an exponential rise in ecommerce, which, for many consumers, has become the most convenient way to shop.
“This has created a huge surge in the number of ecommerce sites.
We have seen a lot of people moving to ecommerce,” said Gaurav Bhatia, managing director of KPMG India, a global consultancy.”
With the introduction of cashless payments, there is a huge increase in the availability of goods and services.
And it is opening up an opportunity for consumers to have more options,” he added.