One more step closer to cash less transactions.

7

“It is estimated that only 13% of the world’s money resides in physical form. Everything else is digital”. –Unknown

etailingDon’t we all love to be in a world where everything is dynamic? Aren’t we all sick and tired of carrying credit cards, debit cards and cash in our wallet? Don’t we all dream of a day where every transaction is done by a common platform with a single device? The wait I think is getting shorter by the day – Thanks to the entrepreneurial startups like Oxigen, Obopay, Easy Bill and Suvidha.

In a move towards cash less transactions, electronic payment enabler companies are introducing the kirana shop around the corner to be a e-retailer. Dubbed as e-Wallet this new facility will provide cash less way of paying all your bills. The common denominator is your cell phone. The e-Wallet works with your mobile phone to pay your bills. Though no clear information is there, I am guessing the mobile number is tied up with your bank account and you make a purchase by showing your mobile. This is pending RBI guidelines to be implement. The service will be rolled to Mumbai and Chennai to start with.

E-Wallet is betting on 2 things:

  1. Organized retail cannot match the personalized services of Kirana stores
  2. People will make frequent purchases more often than you think (against your weekly or monthly purchases).

I agree with them on both accounts. Few would disagree that the kirana stores have to re-invent themselves to combat the threat of organized retailers like Big Bazaar, More, Subiksha etc… With Wal-Mart’s (a joint venture with Bharti enterprises) entry to India slated for 2009, it would only make sense for the small retailers to adopt technology for consumer’s convenience.

May be unlocking your car with a mobile phone in India is few year away, but paying your bills and making your wallet lighter (thanks to e-Wallet) will approach to a kirana store near you, faster than you think.

Banks are moving toward electronic bills to reduce paper clutter and the rest is moving swiftly to reduce cash clutter. I love it.

7 Comments
  1. ramesh says

    India (Bangalore): Verity Technologies, a mobile applications company with focus on Authentication and Identity Management Services. Blue ID is an Identity and Authentication Management tool. Verity’s highly acclaimed Blue ID, a new generation technology that secures financial and online or transactions.
    More details check our website(www.veritytech.com)

  2. Shreeya says

    Sounds Interesting to know about Itz cash card, which makes e-commerce much more fun now, not involving any force or strain to obtain and make use of it.

  3. ravi kumar says

    The cards are readily available and the transactions through ItzCash Card are truly hassle free and absolutely seamless.

  4. Reema says

    Yes i agree with Ravi Kumar. the card is available at your doorsteps. You can get more info at http://www.itzcash.com

  5. ravi kumar says

    hey guys what about the concept of pre-paid cash cards like ItzCash Card which are absolutely safe and can be availed by anyone. These cards are available everywhere in India or one can order one at home as well. These cards seem to the future of transaction in India as they offer the facility of online transaction to the non-bankable population of the country.

  6. srinigenie says

    Another important aspect of digitizing money is that, it straight away legalizes the transactions and completely eliminates the possibility of “black money” which has so much positive impact on the economy. Right now in India, black money runs rampant and infact fuels a secret “parallel” economy!!!

    But the downside of digitizing is that it is technology intensive and in case some criminal gets onto to see the loopholes, there may be a scams to a huge extent.

    Personally, I would see that money gets digitized to a large extent particularly because I own an online bookstore ;)

  7. Julie says

    Although I use my credit cards instead of cash as much as possible, I hate the thought of using my cell phone for shopping – the battery can’t last that long!

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