New Delhi|Bengaluru: The decision to demonetise Rs 1,000 and Rs 500 notes with immediate effect is expected to benefit the country’s startups operating mobile wallets and payment platforms, according to some of the country’s top entrepreneurs. It is likely that such a move will see consumers gravitate towards digital payments at a faster pace.
“This will be a game-changer for us,“ said Flipkart CEO Binny Bansal over a text message, adding that his team is working on measures to help customers move from cash to digital payments easier. Flipkart had launched its payments business under PhonePe earlier this year, which leverages the UPI platform. However, in the short run, the move could lead to a significant drop in cash on delivery sales for online retailers which rely on a high quantum of sales paid for through cash. For most online marketplaces, CoD accounts for over 60% of the transactions. And the move comes at a time when they are looking to go beyond the urban customer base, to smaller towns and cities which primarily transacts in cash.
“In ecommerce, we will see more consumers do digital payments, CoD will reduce which means ecommerce will become more scalable in the long term,“ said Vijay Shekhar Sharma, founder of mobile marketplace and digital payments provider Paytm .”This is the best time to build a financial tech company in India. Every part of the country now wants digital to be successful.”
Kunal Bahl, CEO, Snapdeal, which also owns digital payments venture Freecharge hailed the move. “The move will have significant longterm benefits for the economy .With this, the quantum of India’s economy moving through the digital pipes will witness massive growth,“ Bahl said.