Archive for December, 2016

Why Consumers Spend More in Cashless Transactions ?

Academic research indicates that digital mediums (credit/debit cards, digital wallets, etc.,) do not have cash outflow vividness, and hence reduce the pain of payment during a transaction in comparison to cash. As pain of payment reduces, spending propensity increases. Also, when using these mediums, people are more likely to underestimate or forget the amount spent […]

Demonetisation – Government of India’s Measures to Promote Cashless Transactions

The central Government of India has announced a slew of measures for systemic adoption of digital / plastic currency. The benefits accorded to digital transactions and benefits perceived by the government are as follows, Discount of 0.75% on digital payments at central government petroleum PSUs – Will benefit 45mn customers at petrol pumps everyday. The […]

Demonetization Effect – New Payment Platforms Grows

With the boldest move in the History of India, The Demonetisation of Rs 500 and Rs 1,000, the nation continues to see a gradual shift towards newer payment platforms which should help India move towards a less cash economy. Higher tax compliance as well as lower costs have the potential to accelerate this change, especially […]