rahul1117kumar
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PM Narendra Modi ‘s surprising announcement to demonetize Rs 500 and Rs 1,000 notes is already having quite a big impact on the e-commerce industry. The move has forced e-commerce companies to halt or restrict cash on delivery (CoD), which is by far the preferred payment option for the majority of buyers. Most e-commerce players are evaluating how best to make up for the loss of a significant payment option, and Freecharge along with Snapdeal may have hit upon the right solution.
According to estimates, cash on delivery accounts for nearly 70 percent of all e-commerce transactions, and for Snapdeal the number stands at 50 percent. To cater to this audience, while at the same time keeping in mind the new government regulations, Freecharge is set to introduce ‘wallet on delivery’ for Snapdeal users. What this basically means is that instead of paying online during the checkout process, a buyer will now be able to use the Freecharge wallet to pay for a product after it has been delivered. “What we feel this will do is that it will catalyze users to move away from using cash, and get into the habit of using e-cash. We believe that there will be less cash in the [physical] wallets of consumers, and as a result more and more digital transactions will happen,” Freecharge CEO Govind Rajan told BGR India.
One of the primary reasons why buyers opt for the CoD option is because they want to be sure that the product they have ordered is 100 percent right. With wallet on delivery, Freecharge is essentially looking at allaying the fears of most buyers, and “solve all the issues that make a consumer choose the CoD option.”
Besides the government’s announcement, Rajan believes convenience is what will eventually push most buyers to move on from cash and credit/debit cards to wallets. “Convenience tops everything,” Rajan says. “With the Freecharge wallet on Snapdeal, you can complete the transaction in one click. When you login, your address comes up automatically, your wallet balance shows up, and you can complete the transaction in one click and in less than 10 seconds. This experience is far better than a credit card or a debit card,” he adds.
Modi’s announcement to make the use of Rs 500 and Rs 1,000 notes illegal is not only seen as a way to weed out the “disease of black money,” but it is also a significant step towards the PM’s vision of a ‘digital economy’. The move was unanimously welcomed by the tech industry, with Nasscom saying that this will accelerate the push towards electronic payments.
In the first 24 hours since the announcement, several wallet companies including Freecharge noticed a jump in numbers. The company reported a 12X jump in the average balance as users loaded up their wallets ahead of the discontinuation of the bank notes. Going forward Rajan expects the rate of growth of customer acquisition to double or triple. The company already boasts support for over 100,000 merchants across the country including the likes of Zomato , Bookmyshow, Swiggy, McDonalds and Cafe Coffee Day among others. With the country moving slowly moving towards a cashless economy, the company plans to steadily rope in more merchants.
Freecharge to launch ‘wallet on delivery’ for Snapdeal users: CEO Govind Rajan
According to estimates, cash on delivery accounts for nearly 70 percent of all e-commerce transactions, and for Snapdeal the number stands at 50 percent. To cater to this audience, while at the same time keeping in mind the new government regulations, Freecharge is set to introduce ‘wallet on delivery’ for Snapdeal users. What this basically means is that instead of paying online during the checkout process, a buyer will now be able to use the Freecharge wallet to pay for a product after it has been delivered. “What we feel this will do is that it will catalyze users to move away from using cash, and get into the habit of using e-cash. We believe that there will be less cash in the [physical] wallets of consumers, and as a result more and more digital transactions will happen,” Freecharge CEO Govind Rajan told BGR India.
One of the primary reasons why buyers opt for the CoD option is because they want to be sure that the product they have ordered is 100 percent right. With wallet on delivery, Freecharge is essentially looking at allaying the fears of most buyers, and “solve all the issues that make a consumer choose the CoD option.”
Besides the government’s announcement, Rajan believes convenience is what will eventually push most buyers to move on from cash and credit/debit cards to wallets. “Convenience tops everything,” Rajan says. “With the Freecharge wallet on Snapdeal, you can complete the transaction in one click. When you login, your address comes up automatically, your wallet balance shows up, and you can complete the transaction in one click and in less than 10 seconds. This experience is far better than a credit card or a debit card,” he adds.
Modi’s announcement to make the use of Rs 500 and Rs 1,000 notes illegal is not only seen as a way to weed out the “disease of black money,” but it is also a significant step towards the PM’s vision of a ‘digital economy’. The move was unanimously welcomed by the tech industry, with Nasscom saying that this will accelerate the push towards electronic payments.
In the first 24 hours since the announcement, several wallet companies including Freecharge noticed a jump in numbers. The company reported a 12X jump in the average balance as users loaded up their wallets ahead of the discontinuation of the bank notes. Going forward Rajan expects the rate of growth of customer acquisition to double or triple. The company already boasts support for over 100,000 merchants across the country including the likes of Zomato , Bookmyshow, Swiggy, McDonalds and Cafe Coffee Day among others. With the country moving slowly moving towards a cashless economy, the company plans to steadily rope in more merchants.
Freecharge to launch ‘wallet on delivery’ for Snapdeal users: CEO Govind Rajan
