Wednesday, November 04, 2020

From ATMs to Wallets to UPI - Structural changes Vs Cashbacks


#UPI beats wallets/card transaction and even ATM withdrawals for the first time and logs 2 bn transactions in a month!

We need to bring in structural changes vs temporary cashbacks.

#Demonetization moved us from ATMs/Cash to Wallets. Irrespective of difficult interfaces.

#Coronavirus moved us to UPI. Now u don't carry ur cash to ur everyday store. Phone is enough. Small retailers helped us in adapting to this change - they changed for us to pay without ill effects of touching cash/card.

#Cashbacks/incentives don't change our habits permanently. Sometimes, we may use one app over another basis offers but in long run it would be dependent on ease of use once macro environment has enabled the need.

Ease of use will determine long term usage. How frustration free is the journey of paying on the app and in least no of clicks to completion. Not the colour of app, or celeb promoting it; but #consumerexperience. The communication helps in making you reach more users who would try to use it once, but it better meet the test of #easeofuse first else the brand might loose me forever.

I wrote earlier on this blog about how digital transactions are helping consumers as well as retailers to offer better products and better personalized experiences Vs cash. Read about it - here

#product #marketing #fintech

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