DEMONETISATION IMPACT: Online shopping sees surge; Paytm wallet & CoD payments via bank cards most preferred amongst shoppers.
The term Demonetisation has become a household name since the Government pulled the old Rs 500 and Rs 1,000 notes out of circulation. This announcement by the honorable Prime Minister Narendra Modi is perhaps the most significant step taken, targeted at ferreting out black money and curbing corruption. The effects and it’s impact is seen everywhere across industries. CashKaro.com – India’s largest Cashback & Coupons site did a survey recently to understand the ‘Effects of Demonetization on Online Shopping’. Over 1000 people across India participated in the survey. 85% of the respondents said they are in favor of the recent move and agreed that it would be instrumental in reducing black money and corruption in the Indian ecosystem.
Swait and Rohan Bhargava, Founders of CashKaro.com commented, “We welcome Prime Minister Narendra Modi’s bold decision to phase out the circulation of Rs 500 and Rs 1000 bank notes as this will bring transparency and stronger accountability. The move has definitely given a boost to digital payments and has encouraged people to shop online more. Wallets like Paytm have seen significant growth. We have seen an increase in the number of people clicking through CashKaro and going to our partner sites to purchase daily essentials and consumables. One of the main reasons for this increase is that the Cashback that members earn from CashKaro is paid over and above applied discount coupons, bank & wallet offers. CashKaro Cashback is in the form of Real Cash and can be transferred to user’s Bank Account.”
DEMONETISATION IMPACT ON ONLINE SHOPPING – KEY INSIGHTS
- 78% agreed that they have started to shop online more since demonetization and because of cash crunch
- Going Cashless is the new norm: 35% of the respondents have started using ‘Plastic Money’ even while shopping at local vendors for daily needs and consumables. Others prefer the below sites for buying groceries and daily items:
- Amazon.in – 25%
- BigBasket.com – 15%
- Flipkart – 7%
- Grofers.com – 7%
- Snapdeal – 5%
- Paytm has become the undisputed leader when it comes to being the preferred payment wallet with 50% user share. Freecharge ranks second with 35% with Mobikwik, Citrus Pay and Oxigen follow thereafter.
- Preferred payment method used after demonetization of Rs 500 & Rs 1000 notes when shopping online
- Using Wallets like Paytm, Mobikwik etc. – 59%
- Net Banking – 23%
- Cash on Delivery (CoD) – via using Debit/Credit card – 18%
- Cash on Delivery (CoD) – via Cash – 1%
- 91% of the respondents agree that ‘Cashback offers’ by retailers, banks and sites like CashKaro.com are definitely helping them to ‘Save & Earn’ during this cash