Prompt 3

 Analysis
I started a business a week ago. It's a retail shop where I sell daily utility products such as toothpaste,
soap, bucket, etc. Everything was going well, but some customers wanted to make a cashless
transaction. And I was only accepting payments with cash. As a result, the customers returned from
my shop because I didn't have any facility for taking cashless transactions. I didn't face huge losses
because there were only some customers. But to avoid further losses, I must opt for the avenues for
cashless transactions. I came to know that there are various avenues, so now I have to research and
choose the feasible avenue(s) for my business.

 Why Cashless transactions?

I would go for the cashless transaction as the whole world is moving towards a cashless economy. In
which all the economic activities including all the transactions would be cashless.
According to PwC's 2025 & Beyond: Navigating the Payments Matrix report:-
  Cashless transactions will grow fastest in Asia-Pacific, increasing by 109% from 2020 to 2025,
and then by 76% from 2025 to 2030, followed by Africa and Europe.

 Global cashless payment volumes are set to increase by more than 80% from 2020 to 2025,
and to almost triple by 2030.

It would be a big loss for my business if I don't go for cashless transactions. Cashless avenues will not
only increase my profitability, but they also provide numerous benefits such as: -

 Save time and efforts

 Work & cost efficient
 Reduce risk of theft of fiat money
 No Cash Processing Costs required
 Checkout Efficiency
 Ease in accounting
 No problem of change
 Ease in making transactions for purchasing goods
 Easily accessible
  Available avenues of cashless exchange
Avenues of Cashless exchange are increasing very rapidly. New innovations are happening in the field
of Fin-Tech. Companies such as amazon and Walmart. The avenues of cashless exchange which are
commonly available now are:-

 Credit and Debit Cards

 Mobile Wallets and Payment Apps such as Paytm, Phonepe, PayPal, apple pay,
google pay etc.
 Cryptocurrency
 Central Bank Digital Currency
 QR Codes
 Buy Now, Pay Later
 E-RUPI
 UPI
 Net-Banking
 Mobile Banking

 Features of my choice of cashless avenue

My choices of cashless avenues are UPI, E-wallets, and a point-of-sale machine for card
payments.

Features of UPI: -
 Real-time money transfers
 Available 24 hours a day, 365 days a year
 Access to different bank accounts
 Works with all e-wallets of India(e.g, phonepe, PayTm, etc.)
 Quick Response (QR) code payments are also accepted
 Removes the need for remembering bank account details while making transactions.
 All transaction history at fingertips.

Features of POS machine: -

 Ease in payments through credit and debit cards.
 Tap and Pay
 Efficient payment through swipe
 Invoicing: Selling, Buying, Renting, and Repairing.
 Inventory Management.
 Customer Orders and Suppliers Orders Management.
 Integrated Supplier Purchasing.
 Consistent and Customizable Reports.
 Multi-Store Management.
  WHY MY CHOICE OF AVENUE IS REASONABLE IN
THIS CONTEXT?

My choice of avenues is reasonable in this context because there are mainly two types of
cashless transactions done by most. First by E-wallets or UPI and second by credit or debit
cards. I chose UPI for online payments and POS machine for card payments. Online
payments are constantly increasing, but the use of credit and debit card is decreasing over
time. Tap and Pay credit and debits card are occupying market share and are being issued by
many card providers with time. So for both the present and future, I have chosen avenues.

 Conclusion

Cashless avenues of transactions are increasing very rapidly. The above graph shows
increase in non-cash transactions (in billions). New innovations are happening in the field of
fintech. Companies like amazon, google, and Walmart is working on making the cashless
transaction process easier. However, one should select the cashless avenues rightly by doing
proper research as nowadays many options are available. By the time I am writing this
report, UPI and E-wallets are the two best avenues for merchants and consumers. In the
future new technologies like E-RUPI, and CBDCs might capture the market. It can be
concluded that these avenues are great in their own way and play a vital role in making a
cashless economy.