Mobile Wallets Hit Home as Rs. 500 and Rs. 1000 Notes Fall Flat

THE recent demonetization of Rs. 500 and Rs. 1000 currency notes, has left Indians in a makeshift crisis of cash. Despite assurance and digital assistance from the government, many people are facing the aftermath. This rigid decision from the government, besides tackling the issue of Black Money, also paved the path for a cashless (or less cash) economy. Consequences suggest an apparent increase in the number of sign-ups for mobile wallets since 8^th November.

Paytm, one of India’s largest mobile wallet solutions enterprises, seized the opportunity amid PM Modi’s speech by tweeting this:

We have got two words for you: Paytm Karo.

— Paytm (@Paytm) November 8, 2016

Mobile wallet applications like MobiKwik, Paytm, Freecharge, Ola Money registered a notable overall 250 percent leap, hours within the announcement. Ola Money was steered to the pole position with a 1,500 percent increment in payments through wallet. Paytm, too, officially announced a 435 percent upsurge as millions turned to the app for their payment. Downloads of these apps attributed to a 200 percent jump.

India is busy downloading @Paytm pic.twitter.com/OAxvFEBg8h

— Deepak Abbot (@deepakabbot) November 9, 2016

The following day – 9^th November – might have seemed dry for business as most people struggled to garner notes of lower denominations, as most banks and ATMs were closed. The ones open saw endless queues for withdrawal of cash. Freecharge, in a first, announced “Wallet on Delivery” in exclusive partnership with to do away with the cash hassles and expected dearth of new currency notes in near future. Paytm endorsed its service by reaching out to street vendors.

With Rs 500, 1000 notes banned, @Paytm at tea stalls pic.twitter.com/tpRYRV4qmf

— NDTV (@ndtv) November 10, 2016

Incentivizing small vendors to accept payments via wallets will ensure better accounting of tax, especially after Goods & Services Tax (GST) is rolled out. Companies like Paytm have buckled up to increase their workforce to maximize benefits of this transformation, by presenting willingness to hire at least 10,000 people to focus on touchpoints of cashless wallet transactions.

What is vital, is to observe whether India will be baptized with the cashless philosophy and, despite its handicap in digitizing non-urban regions appreciate the move by the government or not.