Change in Preferences of Businesses

No Type Pre COVID Post COVID

Table 1: Pre COVID
G1 Type: Organized • Being in the restaurant business, the • The business developed regular vendors,
(Restaurant business had to make daily purchases of for contactless deliveries. Hence, it had to
G6 Chain) fresh produce from vendors. Hence, it had shift towards online modes of payment.
Preference for Online

City: Tier 1 high preference for cash.

G2 Type: Organized • Being a traditional business, the vendors • Even post pandemic, most of the vendors
G2 (Packaging) preferred payments through cheque. They preferred cheque and were reluctant to
G1 City: Tier 2 were reluctant to change to online change. However, some vendors did set up
G4 systems. NEFT and UPI options

G3 Type: Organized • Since online payment system involves • The industry was severely affected by the
G3 G5 (Tourism) transaction charges the business pandemic. It had to adapt and incentivize
City: Tier 3 preferred cash payments. It had kept its online payments as well to secure
tourism packages at lower price points if business.
payment is made through cash.
Preference for Cash/Cheque
G4 Type: • The business preferred payments to • Post pandemic even the consumers started
Table 2: Post COVID Unorganized vendors through online modes since it is payment through online wallets and UPI
(Small safe and secure. However, customers since they were offering cashbacks and
Restaurant) visiting the restaurant preferred payments other incentives.
G1
G3 City: Tier 1 through cash since the billed amounts
Preference for Online

G2 were small
G6 G4
G5 Type: • Laundry is collected door to door from • The laundry man does not trust the
Unorganized student dorms. The laundry man formal banking system and was reluctant
(Laundry) preferred taking payments in cash since it even during the pandemic to set up online
City: Tier 2 did not have bank account set up. payment system.

G6 Type: • Before the pandemic, most of the • However, after the pandemic the vendors
G5 Unorganised payments to vendors were made through accepting cash payments shifted to UPI
(Manufacturing) NEFT/RTGS. Few transactions to and online wallets.
City: Tier 2 traditional businesses were made through
cash.
Preference for Cash/Cheque
 Change in Preferences of Consumers
No Type Pre COVID Post COVID
Table 1: Pre COVID G1 Age: 18-35 • Young consumers in urban cities were • Post pandemic most of the purchases were
City: Tier 1 already accustomed to using online delivery based; from online websites.
payment systems. They were switching Hence, the proportion of online payment
G2 between cash and card based on purchase method increased.
Preference for Online

type

G3 G2 Age: 35-60 • Being an urban, high-income family, they • Post Pandemic the family started buying,
G1 City: Tier 1 were already comfortable with cards. They even the groceries online from Bigbasket
G4 were using cash for groceries (fresh and switched almost completely to cashless
produce) and paying house helps systems. They also optimized their spends
by using different credit cards for different
G5 expenses
G6
G3 Age: 18-35 • The consumer was availing cash on delivery • Post pandemic most online purchases were
City: Tier2 option for online purchases since it made contactless. Therefore, she had to
Preference for Cash provided her with the option of easy shift to online modes of payment.
returns.
Table 2: Post COVID G4 Age: 35-60 • Consumer had high preference for cash; • However, post pandemic, the consumer
City: Tier 2 most of the essential services were paid in shifted to card and UPI. Some of the
G1 cash. Online purchases were paid through payments for essential services were made
Preference for Online

G2 debit cards in cash.

G6
G5 Age: 60+ • Being senior citizens, they were not • Post pandemic they had to start using online
City: Tier 2 accustomed to using online payment payments for groceries and essential items
G3 systems for day- to- day expenses. They since options for cash payments were
G4
G5 were using NEFT for just high value
payments.
limited.

G6 Age: 18-35 • In the tier 3 city, the vendors did not have • Post pandemic the vendors set up Google
City: Tier 3 the option for payment through UPI/online Pay and PayTm QR scanner systems. Since it
wallets. So, cash was the only option. was convenient and easier to use, the
consumer shifted to online payments
Preference for Cash
Conclusion
Cash/cheque was the preferred mode of transacting before the pandemic. Post pandemic online modes has gained widespread popularity.

Inferences
Consumer:
- Essential purchases (like groceries) were dominated by cash before the pandemic. This was mainly due to non-availability of online payment systems with the vendor.
Non-essential purchases made over e-commerce websites were primarily through credit/debit cards for ease of use and convenience.
- Post pandemic even the essential goods are being purchased online through apps like Grofers/BigBasket. Even the roadside kirana shops have setup Paytm accounts.
This has led consumers to adopt online methods for ease of use and cashbacks.

Businesses:
- Before the pandemic businesses were primarily using Cheques/NEFT for transacting high value purchases. Some traditional small business also transacted entirely in
cash.
- Post pandemic, businesses have shifted to UPI and online wallets as well. Traditional businesses have increasingly started using online wallets for accepting payments

Precautions
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