Since the Indian independence in the year 1947, the demonetization move to ban 500 and 1000 Indian currency notes is one of the biggest economic overhauls. The Indian Government headed by Prime Minister, Narendra Modi has decided to ban the old 500 and 1000 currency notes from the midnight of 8th November, 2016. The issued notification also informed people about the introduction of new currency notes and the selected use of old currency notes at various places till the midnight of 11th November, 2016.
The new currency denomination will be in the form of 500, 1000 and 2000 notes. Additionally, the people having the old currency notes of 500 and 1000 value can get them exchanged for new currency notes from 10th November onwards.
Well, the move has been hailed as the “masterstroke” move against black money, fake currency, and corruption, there have also been certain murmurs around. The tremors of demonetization were felt across the wide range of business spectrum but it was really a golden opportunity for eCommerce companies. Due to the ban on 500 and 1000 notes, people are having a hard time in buying groceries, dresses, cosmetics, electronic durables, and a host of other items through hard cash. In situations like this, online payment and digital wallet options have suddenly gained the huge attention. Let us offer you a quick tour of how the eCommerce companies reacted and took this bold decision in their strides.
Kunal Bahl, who is the co-founder and CEO of Snapdeal, an eCommerce marketplace platform expressed his opinion about this announcement through his tweet mentioned below:
Apart from Snapdeal, digital companies, as well as other eCommerce startups, have appreciated this big-bang move. Kunal Bahl further added that
“With this, the quantum of India’s economy moving through the digital pipes will witness massive growth. Both Snapdeal and FreeCharge are committed to supporting all such initiatives.”
Naveen Surya, who is the chairman of Payment Council of India (PCI) and the managing director of ItzCash stated,
“We welcome this extremely bold and much needed step by Prime Minister Modi and the government to cure us from disease of cash in our society. I along with Payment Council and India and ItzCash greatly admire this move and provide our full support.”
Trupay, a unified payments interface (UPI) company, which offers bank to bank payment solution was all praise about this great move. In the words of Rahul Gochhwal, a co-founder of Trupay,
“During the changeover period of phasing out old currency notes we really believe that a lot of people will move towards digital payments options due to curbs on roll out of new currency. People will now look at and embrace new age digital payments systems which are far more efficient to enable direct bank to bank retail payments.”
Paytm, a popular digital wallet company took it Twitter to convey their reaction by pushing forward their famous tagline.
Speaking with The Economic Times, Paytm founder, Vijay Shekhar expressed his views as
“In ecommerce, we will see more consumers do digital payments, CoD will reduce which means ecommerce will become more scalable in the long term. This is the best time to build a financial tech company in India. Every part of the country now wants digital to be successful.”
He also welcomed the decision whole heartedly.
Similar sentiments were echoed by Bipin Preet Singh, CEO and co-founder of MobiKwik, another digital wallet company. He considered the present economic reform as a milestone in the history of India. He said,
“Within a 50 day period, a billion Indians will change their payments behaviour – we will move from cash only to a cash-free economy. This a strong step taken by the Modi government and will benefit the growth of digital payments and digital banking in India.”
Digital payment and eCommerce companies are finding the present economic situation as the most lucrative option for their business and want to fully capitalize it. E-Commerce companies like Snapdeal, ShopClues and others are launching their own digital wallet payment option to offer a streamlined transition for customers who were earlier opting for “Cash on Delivery” (COD) method.
This is definitely a big radical change that will surely transform the way billions of Indians make their regular payments for various day-to-day services. If you are one of the eCommerce store owners, it is the ideal time for you to get involved in this marathon of digital payment. Start offering multiple digital eCommerce payment options and encourage customers for a quick online product purchase.
You can avail the wonderful eCommerce plugin development services of Knowband in this regard. The company can deliver you feature packed customized eCommerce plugins for digital payment on Magento, PrestaShop, and OpenCart platforms. So, be a part of this financial reform and achieve big with your eCommerce store.
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