Flipkart chairman Sachin Bansal has said that the government’s demonetisation drive will not only spur the growth of digital payments but also become an enabler to a whole set of other developments. At the Global Mobile Internet Conference (GMIC) here on Wednesday, Bansal said that almost the entire business of the e-commerce major has been through electronic means of payment.
“Before the announcement it used to be half, which means 50% electronic payment and 50% through cash,” he remarked. Flipkart has also resumed its cash on delivery (COD) option up to any amount. The e-commerce major which had suspended this payment mode had also offered additional time to procure cash for buyers who had already placed the order.
A Flipkart spokesperson said, “The government’s decision has given a big push to adoption of digital instruments like wallets and UPI. In the last few days, we witnessed a lot of movement towards electronic transactions and we expect the economy to further support this change.” Bansal said the demonetisation move is going to be one of the important step in reducing quantum of black money in the country and felt that some more measures were required by the government to curb this menace.
However, he felt that the government could have anticipated the implications of the demonetisation move through more research and roping in of experts to deal with current situation.
On the prospects of the Indian e-commerce industry, the Flipkart chairman said that segment will continue to grow in high double digits if not triple digits. The reason for this optimism is the low penetration of online shopping in India which is estimated to be around 2% of the entire retail industry unlike other developed economies which is around 9-10%.