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High cost of cashless options pushing consumers back to cash: Survey

Citizens want no debit card charges, maximum merchant charges on credit card & wallet usage below 1%

ANI  |  New Delhi 

Photo: Shutterstock
Photo: Shutterstock

Citizen engagement platform LocalCircles' survey, revealed that out of the 8,715 participants, 68 per cent said that majority of their transactions are now happening in Only 32 per cent said that they still prefer using debit or credit cards as well as other forms of transactions to make payments.

has majorly been a cash-based economy. The move by the government in November 2016 put our country on the path of being a economy. In the initial period, post the move, as the flow in the market was low; many discounts were offered to customers on electronic transactions.

Transaction charges were waived off and it looked like was on the right path of reducing transactions and increasing online transactions. But three months after the move, as the availability of cash improves, people are going back to cash transactions.

The trend shows that as the availability of cash is improving in the market, even the people who had started using payment methods after are using cash for the majority of their transactions. Some of the major reasons outlined by the citizens for this were high transaction charges for debit or credit cards, less availability of PoS terminals at shops in local markets, cases of fraudulent transactions and so on.

Citizens also made many suggestions for promoting and reducing transaction cost. Citizens want charges to be zero. Also, people want on and usage to be fixed at less than one percent.

Citizens are also of the view that entities like Bhim and RuPay should have zero or minimum transaction fee and be aggressively promoted.

First Published: Fri, February 17 2017. 16:02 IST