What with demonetisation, people going digital and even the local shops switching to Paytm, the euphoria seems to have died down now that ATMs have cash available in them once again. The use of mobile wallets and digital transactions seems to be on a decline at local shops, fast food joints, fuel stations and more.
While payments through card and mobile payments reached their peak at 80% during November and December, during the last month cash payments have found their way back. Reportedly, customers paying more than Rs 2000 are the only ones preferring to pay by card, and a decline in paying by card is legitimately seen as customers are reverting back to their earlier habit of paying by cash.
Vizagites have been complaining that some of the vendors are charging them 2% extra on the bill citing the bank charging them too as the reason. The initial inertia about paying by card has already died down due to this. The vendors state that they genuinely do have to pay transaction charges so they prefer cash too.
Looks like if the government is serious about getting people to go digital, they need to do something about the charges on online transactions.
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