Data cafe: Driving cashless payments

By: |
Published: July 10, 2015 12:24:17 AM

While online retail is transforming the shopping experience of customers—and banks and other players in the e-commerce ecosystem...

While online retail is transforming the shopping experience of customers—and banks and other players in the e-commerce ecosystem are providing a secured online platform to pay effortlessly via payment gateways—cash-on-delivery (CoD) still remains the most preferred mode of payment. A little less than half of online customers pay in cash at the time of delivery, and about 17% use net banking or mobile wallets. Credit cards are used by 16% and debit cards by 21% online shoppers, according to a recent study by Deloitte.

Often, customers fear to share information online and do not trust the website for secure payments. However, for retailers, CoD entails higher direct and indirect taxes and issues of reverse logistics arising from CoD defaults. To counter these fears, e-tailers have started providing the facility of paying with card on delivery. A card-based or online payment saves significant costs and time for e-commerce companies. Even the government’s proposed move to encourage electronic transactions, including income-tax benefits for payments made through debit or credit cards, will drive cashless payment and boost the e-commerce sector.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Politically Incorrect
2Editorial: Monsoon washout
3Editorial: China ‘put’ in trouble