Young merchants in India keen to adopt e-payments: Report

Giving a thrust to country's efforts to move towards a "less-cash society", young businessmen in the country are ready to adopt electronic mode of transactions in view of safety concerns and other operational issues related to cash payments, says a report by MasterCard.
"A new MasterCard study of micro merchants in India indicates that young merchants in the age group of 35-45 are most likely to adopt electronic payment system, thus furthering the country's vision for a less-cash economy," MasterCard said in a statement.
The 'MasterCard Micro Merchant Market Sizing and Profiling Report' was done to understand market potential, key barriers to adoption of non-cash modes of payment and opportunities for enabling a less-cash society.

As per the study, young merchants owning large and medium sized businesses, primarily in auto accessories, building fittings, medical, private cabs, and food & beverage sectors form the high potential segment.
The potential market size to be more than Rs 23,000 crore weekly, it added.
Merchants acknowledged safety and operational concerns related to a cash-driven business, with 33 per cent admitting need for presence of self or family member at the store to avoid pilferage.

While, 29 per cent merchants agreed they face operational efficiency issues related to cash such as time and effort to tally expenses and profits daily, and keep record of transactions.

About 24 per cent admitted to having lost customers due to inability to accept card payments, said the report.
Around 10 per cent inclined to trials of e-payments which is almost 5 million of the total 59.16 million micro merchants.
Merchants cited potential increase in revenue (46 per cent) as a strong driver for trials, followed by increased business efficiency (31 per cent) and enhanced shop image (30 per cent), MasterCard said.
"Our vision is a world beyond cash as a less-cash financial system will benefit both merchants and customers by mitigating the costs and risks associated with cash while doing business, as well as enable merchants to target new customers and markets," said Porush Singh, Country Corporate Officer, India and Division President, South Asia, MasterCard.

Praveen Khandewal, Secretary General of traders body CAIT said: "India is on the cusp of a payments revolution as this has been pursued as a key policy objective by the BJP government.
"A less cash economy will benefit our constituency of around 6 crore small merchants and traders in reaching out to newer markets and as outlined in the study," he said.
The study involved 1,653 merchants across nine cities - Delhi, Kolkata, Mumbai, Chennai, Bengaluru, Bareilly, Ranchi, Nasik and Vijaywada, through face to face interactions.