Electronic Currency is the main aspect to drive towards the development of the country.
Long before, Digital payments are not so prominent as of now. Many People are not aware of Cashless payments. Even there aren’t proper Application to support the cashless economy. At present the whole scenario is different.
There’s a heightened consciousness of the perceived advantages of going digital. Nonetheless, it’s very important to make changes which are both behavioral and infrastructural in nature. The cashless economy will have a high impact by taking the following measures.
Guidance by the Government
A collection of studies by organizations like CGAP and Gates Foundation have concluded that adoption of electronic currency is directly proportional to the availability of cash-in and cash-out factors like ATMs.
The ease of transition from cash to electronic and then back to money gives users the confidence to keep their cash in digital formats. Such confidence-building steps will fuel the rapid adoption of electronic money.
The government is making concerted attempts to bring in certain infrastructural changes through campaigns such as digital India, supplying power access to each village etc..
It’s also working on the fundamentals with strategies such as Pradhan Mantri Jan Dhana Yojana (PMJDY) providing every citizen with access to banking. These are the building blocks of an infrastructure that’s prepared to support a digital motion.
Reducing the cost of the product
This will be the utmost best thing to increase the cashless Economy and promote Digital-payments. Indian’s are welcomed to the products which have discounts and MRP cut. So to promote Digital Currency. The offer was like… Pay through Mobile and you can avail discounts.
The condition would be like…The discount can avail only when you pay for the product via Digital Wallet. By these reliable measures, we can drastically promote Digital Payments.
Disruption in electronic technologies can help startups, business correspondents and cash-in prepaid issuers to convert money to electronic money by using the additional legs of the money distribution chain. This is like the disturbance that occurred in the P2P domestic currency transfer.
Now, over INR 10,000 crores of yearly IMPS trades are being pushed by company correspondents and cash-in prepaid issuers.
Improve Customer Experience
Obviously, it can increase because it feels so easy and comfortable to use Digital Payments. So we can have a clear idea of making our expensive be in the right direction. Overall it is a clear state of being in a great Customer Experience.
Deficiency of customer relaxation because of small digital payment approval across retailers and a perceived lack of customer protection prevents customers from embracing digital cash. Improved customer experience might provide them the confidence to turn their money to electronic currency.
Such a behavioral change can come in through the development of new use cases. This can harness a sense of consumer safety and convenience.
Increase efficiency by using Electronic Currency
A vital step in the widespread adoption of electronic currency is a better process efficiency enabling fast motion of money.
When the electronic medium enables fast and precise movement of cash, it helps convert money to digital. Higher levels of efficiency and speed will make sure that the money disappears and remains mostly electronic.
Open access to this above-mentioned public infrastructure will fuel innovation resulting in improved products and processes. The authorities and policymakers should actively participate with these players and push them to innovate further and tackle the other legs of the money supply chain and convert a whole lot more money into digital formats.
How much percent of Electronic Currency is seen in India
Today, only 6 percent of Indian retailers accept electronic payments and approximately 10% of customers used a debit card this past year. 96 percent of the Indian money remains in the kind of money and India has a challenging task ahead to convert this to electronic money.
However, we’re steadily moving towards a digitally connected environment. Sustained government initiatives have contributed to the creation of over 300 million Jan Dhana accounts, 1.1 billion Aadhaar accounts, 650 million telephone connections and have left 450 million Indians with net access.
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