Snapdeal-owned Freecharge has just made the maximum out of the cash crisis that will stay for next few months. Since the PM announced that the current Rs.500/- and Rs.1000/- notes are not legal tenders anymore, the companies are trying hard to get rid of the cash options. Snapdeal announced moments after PM’s announcement that it is going to stop “Cash on Delivery” altogether for some time.
Why is COD important for online retail stores?
The idea behind Cash on Delivery is simple and straight forward. It is mainly for those customers who do not want to pay for the goods in advance or do not want to give out sensitive information online. The fear is genuine, and most of the online retail stores understand it. The CoD gives a satisfaction of security to the customer. As the larger denominations are scrapped now, and new notes will be in very limited supply, it is important for all the retail stores to find some way out.
What is Wallet on Delivery?
A few months ago, the Government of India allowed 11 companies to work for payment banks including PayTM. There are still some eWallet companies which are looking forward to getting the license in the second round. Mobikwik and Freecharge are among those undertakings, and both the eWallets are quite popular. To make the process of payment easier for the customers, the online retails companies are now planning to offer Wallet on Delivery option. Instead of paying cash, the user can simply load money in his wallet from the bank account and transfer it to the company’s account instantly.
Snapdeal is the first!
Snapdeal became the first company to offer such service. It is giving customers an option to pay via Freecharge which is owned by Snapdeal. Now customers can download the App on their mobile phones and pay the amount at the time of delivery. Freecharge is going to be a PIN-based payment system. The user will get a PIN which he has to put in at the time of delivery. The company will not use the QR code system.
PayTM to follow
As soon as Snapdeal made the announcement, PayTM also informed via social media that it is also working on the similar track and will soon offer POD (PayTM on Delivery).
Kunal Bahl who is the founder and CEO of Snapdeal issued a statement on the new option. He said that the Wallet payment system is the need of time. The launch of new feature shortly after the demonetization of the higher denomination notes shows Snapdeal’s efficiency.
We are going through a time of a change and going cashless is the best option. The wallet companies like PayTM, Mobikwik, Freecharge, Airtel, ICICI Pockets and others can take the matter in hands and give a wide range of options to its customers. Freecharge, Mobikwik, and Freecharge are already working hard to become the leaders in Wallet payment market.
The cashless economy makes it’s easy for the government to track money movement. Also, it makes it possible to reduce effects of FCIN that often find its way in the economy.