Demonetization of high value currency notes in India will provide a big boost for Digital India. Reduction in cash transactions will help multiply digital and plastic transactions such as cheques, credit card and mobile wallets.
As Indians start getting used to handling digital money, their trust in anything online and mobile will get a big boost. If you can trust mobile and Internet with your money, everything else on mobile and Internet will begin to get trusted as well. More Bank accounts will be opened by citizens as they’ll start keeping their money in a Bank. More and more online transactions will take place not only in urban areas but also in tier 3,4,5 geographies and rural areas.
New online users will need a good understanding of the terms and conditions of usage and will demand more information on the products and services they’re buying without being able to touch and feel. This information must be made available in simple layman language and vernacular, something that simple people will be able to understand and trust.
Businesses that are able to develop and implement a comprehensive strategy to address tier 3,4,5 geographies will find favour with the next 80-100 million new users that are likely to attempt small online transactions carefully. The companies that are able to win the trust of these users and provide them quality products and services will have the first mover advantage.