In the current scenario where people are at home due to COVID- 19 lockdown and trying to keep themselves busy with various activities apart from their daily online work (WFH), digital payment has made its way in their life. Yes, we all are using digital mode of payment for each and every purchase we are making. What are the reasons? May be we are trying to avoid the risk in physical cash transactions. Whatever is the reason but yes now ‘India’ is using digital payments mode for their transactions and stepping towards cashless economy.
In 2016, demonetisation took place in the country and government asked the people of the country to use digital payments as much as possible. Introduction of new payment apps with different features and reduction in costs of internet services started digital movement in the country.
But, it was only last year when digital payment system accelerated in the country due to COVID-19 lockdown and there was no other option except to go for digital payment services. Everyone started using online digital payments, those who were finding it difficult previously also learnt to use the system. We can say it was not by choice but crisis made them to go for digital payment for their each and every transaction. As per the Reserve Bank of India (RBI) data the volume of digital payments has increased in last one year but the value is less.
So, what happened to the King – The Cash payment system which ruled our Indian market for so long? Is the king losing its identity compared to other payment modes and are we going to continue with this new trend of digital payments as our future payment system? Some experts’ belief that the digital payment trend will continue in future too and even the faster acceptance and adoption of crypto currencies among people may replace fiat currency in the future. So, what about the cash payment system? Who will dominate the market in the future and will overtake the position as the new king of the market. Only time will tell whether we have to change the Phrase ‘Cash is King’.
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‘Revenue is Vanity, Profit is sanity, but cash is King’
Dr. Meena Sharma