Group Members

● Abarna Chatterjee

E-Wallets and ● Anubhab Kar

Demonetisation ● Aryan Sharma

● Darian R. Laitphlang
FY-A
● Khyati Mehrotra

● Harshit Jain
Demonetisation
The PM of India, in an unscheduled national televised address, informed the nation about the
demonetisation process that would bring a massive change to the way Indian consumers go about their
daily transactions. E-Wallets came in and helped the Indian consumers cope with the change in times.
Two years after that, the scenario has changed. We have conducted a survey, upon the use and the
impact of E-Wallets, which will help us know if the Indian consumer is shifting towards a more
paperless economy, or not.
As evident from the graph alongside,
most of the people who took the survey
lie in the 18-30 age bracket, while 57.6%
of our respondents were male and the
rest female. It should be brought to notice
that even though most of our respondents
were quite young and hence, tech savvy,
we can see from the graph below that E-
Wallets still hasn’t been able to wrestle
out print money as a mode of transaction.

This graph shows that the majority of the

users still consider money safe and use it
as the primary source of payment. It is
important to know that E-Wallets are still
lagging behind in terms of usage to cards
(credit or debit unspecified). Hence, we
come to the reasoning that E-Wallets still
have a lot of ground to cover up before
they can establish themselves as serious
challengers to print money.
According to our survey, almost every person we surveyed, had the knowledge of existence of E-
Wallet companies. Yet again, from the previous slide, we concluded that printed money is the
preferred way of daily transactions for the consumers. Thus, even though everyone knows about
these E-Wallets, it seems that the public is simply not ready enough to accept the changes. The
dream of a cashless economy, as promised by demonetisation, seems to be a far way off from reality.
We can infer from the the data above that the number of people using electronic channels for settling
transactions has increased by a considerable margin which can be easily attributed to the restrictions
imposed on physical cash discharges, during the time of demonetisation. People are now better prepared for
any sudden changes that the Government might bring up. While cash is still the ruler, large cashback offers,
aggressive advertising and heavy discounts are making the consumers take E-Wallets seriously.
 It is worthy enough to take note that
despite various issues of malware and
phishing, most people still do believe that
their money is in safe hands when paying
by E-Wallets.

There is a plethora of digital security

concerns, ranging from ransomware
to inevitable threat presented by the
computational capabilities possessed
by the quantum computers that
compromise the safety of all
conventional encryption systems.
Therefore considering the uncertain
guarantee of safety in the internet
domain, consumers are weary of
making the switch to the cashless
economy.
The pie chart above portrays the fact that our society has not fully embraced the arrival of a
digital economy, furthermore the number of internet users in the country has expanded only in
recent years implying that more time is needed to integrate a non-cash based banking and
payments system. Alongside, cash is still the Indian consumer’s go to mode of transaction.
As seen in the pie chart, E-
Wallets are being used for a
variety of purposes with the
maximum number of people
using it for ordering goods. E-
wallets are preferred only when
the amount of transaction is low
but as the transaction amount
increases people tend to shift to
cash.
More than 50% of people believe that
the sudden spike in use of E-wallets was
an after-effect of demonetisation. With
the shortage of hard cash during the
time of demonetization, E-wallets
emerged as a boon for the people, and
people resorted to E-wallets willingly or
unwillingly for the time being. With time
as the hard cash returned into
circulation the use of E-wallets
decreased, but by that time most of the
population at least became aware of the
alternatives of hard cash.
Conclusion
As we arrive at the end of our survey, it is safe to conclude that demonetisation was able to disrupt
the status quo of our daily transactions, whatever little it maybe. E-wallets came in, capitalised on the
unavailability of hard cash and thus garnered public trust and confidence. As these firms became
larger, more players entered the market and now we have a number of E-wallets to choose from.
While the society has not yet fully embraced the concept of a cashless economy, surely the E-wallets
are now considered another option of payment in the absence of print money. Credit is due to
demonetisation for bringing about larger acceptance of cashless transactions everywhere, starting
from your everyday local grocer to the finest restaurants out there. There still exists a large potential
for the E-wallets to tap into : second, third tier cities and rural villages are some of the untouched
areas that can benefit from the E-wallet services. Trust is a major factor for any firm that handles
public money, and the E-wallets have been able to repay that faith, along with the introduction of
services like Payments banking, mobile recharges etc. It is expected that the E-wallets will up their
game and soon be able to establish themselves as perfect substitutes to print money.
Thank You
:)