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Payment Options – one size does not fit all

By: Anand Ramachandran, CFO, TechProcess Payment Services

The word ‘cashless’, ‘digital payments’ is currently trending and is the most read about after 8/11. Almost every day, these terms are commonly used in different Indian media.

With the government introducing various incentive schemes for merchants and consumers to boost digital payments by reducing MDR, we expect to see a behavioral aspect to change with rise in digital payments in 2017. And more importantly, it is important to observe if we Indians have complete flexibility for making cashless payments in different modes.

Unlike the western world where credit cards are the default payment mode, in India there are various payment options available: Payment through netbanking, Debit/Credit cards, mobile wallets, mPoS, UPI, QR Code Aadhar enabled payment, *99# and so on. With demonetisation, all of these modes have seen quantum jump in volumes . These digital platforms will benefit more as the market moves away from COD (Cash-on-delivery).

Merchants on the other hand, are grappling with the change with short-term and long-term solutions. In the short term, they have started accepting mobile money transfers, but soon will migrate to swipe machines or online payments. It is important for merchants to offer his consumer a wide range of payment options, depending on his/her business model.

For e.g. A merchant may accept a mobile wallet payment, but the consumer may not have that brand’s mobile wallet.

All merchants – regardless of small business or running a network of brick-and-mortar stores, online or mobile shopping environments — need to offer flexible payment options by seamlessly integrating various payment channels.

While an omni-channel payment experience will enable merchants to provide flexibility and convenience to Indian consumers, the success of it depends on Indian payment service providers’ ability to deliver it.

2 responses to “Payment Options – one size does not fit all”

  1. Milind Mungale says:

    My experience is slightly negative specially after the new year beginning. I would like to narrate two incidences. (1) a South Indian joint and a Sandwich joint (both two distinct joints but gave the same experience) suddenly stopped accepting money from one of the most popular mobile wallet. Reasons sited were that the limit is got exhausted and increasing the limit is taking time and the second reason was that the charges of plouging back the money to bank account is high. As consumer I have no charges to pay hence don’t know how much merchant has to pay but the percentage, I am told, is high. (2) A general store and a restaurant (both distinct but gave the same experience) have suddenly popped up the banner stating that Credit Card would be accepted only beyond certain amount. In addition they stopped Mobile wallet payment giving technical reasons and also put up a note that exact change may be tendered. I felt certain amount of shamelessness to see all these three things together during current time. It appears that many waited (and cooperated) till Dec end and started back to these things as soon as 50 days were over. This way I have no hopes that we will move to the said economy (cashless , Digital and accounted money economy) for long time to come.

  2. Very informative article.

    Thanks – Sudhir

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