E-Commerce Cries While Fintech Sector Gloats As Modi Demonetizes Rs. 500 & Rs.1000 Notes
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
In a landmark move the Indian Prime Minister Narendra Modi completely scrapped Rs 500 and Rs 1000 notes making them invalid in one of the boldest crackdowns on black money and corruption in India.
The move comes at a time when ecommerce companies like Amazon, Flipkart and others have just rejoiced a crackling month of festive sales. Alas, this joy was short lived!
Cash on Delivery, which was one of the most preferred options of payment methods by customers, especially to those belonging to tier 2 and 3 cities, could now be in the state of abolition.
Customers, who generally do not have access to good quality internet, debit cards or are hesitant of making transactions online, will now be left in a limbo!
According to a report published last month by Research and Markets, Cash on Delivery had dominated the India teleshopping market in 2015, and the same trend was expected to continue during the forecast period owing to rising customer preference.
Tuesday's announcementleft food delivery platforms like Zomato, Swiggy’s and others paralyzed for a while and they soon resumed operations whereby the completely scrapped the COD option from their portal.
Cashless PayMent Karo!
On the other side, fintech companies had the last laugh! Indian fintech leader PayTm and other online payment platforms like JusPay, PayU and mobile wallets were crowned winners overnight.Online transactions are expected to soar for the minutest transaction, all thanks to this historic reform by the Modi Government. Ecommerce companies, who had so far steered their growth in tier 2 towns using COD will have to now re-work their strategies in these cities.