Cheque facility may be withdrawn to push digital transactions?

The government is going digital and it seems, there are plans to withdraw cheque facilities to push digital transactions.

“In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions,” Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal said.

Note that there are no reports/confirmation from government on this and this could be just at proposal level, but math does help push the cause.

“The government spends Rs 25,000 crore on the printing of currency notes and another Rs 6,000 crore on their security and logistics.

“Moreover, banks charge 1 percent on payments through debit card and 2 percent through credit cards. The government needs to incentivise this process by providing subsidy directly to the banks so these charges can be waived.” (source).

Also see: Paying digitally? You might get 2% tax concession under GST

Paying digitally? You might get 2% tax concession under GST

The government is considering a proposal to offer consumers a 2% tax discount for paying online in an yet another effort to wean Indians away from cash.

The incentive will be available on items taxed at 3% or more and is subject to a ceiling of Rs 100 per transaction, the official said.

If approved, consumers will be offered two prices for products—one with the applicable tax rate for cash payments and another with a 2 percent discount for online payments (via).

The much needed ‘freebie’ needed to continue the digital revolution?

Paytm + ICICI = Buy today, Pay later [Credit card killer]

Now, this is an interesting partnership between Paytm and ICICI bank.

The partnership will enable lakhs of Paytm customers to get access to instant credit for the first time for everyday use-cases ranging from movies to bill payments to flights to physical goods.

You can now get up to 45 days interest-free credit on Paytm. The credit amount ranges from Rs 3,000 to Rs 10,000, and is extendable up to Rs 20,000 based on your repayment history. Paytm-ICICI Bank Postpaid will also offer a quick checkout to customers with the Paytm Passcode and is available 24×7 and on all days of the year.

Paytm-ICICI Bank Postpaid allows you to buy today and pay later. You can set up your Paytm-ICICI Bank Postpaid account through the Profile section on the Paytm app.

You can select ‘Paytm-ICICI Bank Postpaid’ as a payment option for your purchases on the platform. Using Paytm-ICICI Bank Postpaid as a payment mode, you can book movie and travel tickets, do mobile recharges and shop on Paytm Mall.

First serious attack on credit cards?

Coming soon: Jio e-commerce

The company is working with corner stores, or ‘kiranas’, and consumer brands to create an operational model that will enable shoppers to buy at neighbourhood shops using digital coupons via its Jio Money platform or text messages.

Jio is launching a 360 degree attack on every possible digital player, thanks to the basic experience it owns.

The Jio Phone.

Jio not just has 132 million users, but access to SMBs (remember they also sell GST software) – so bringing them on to the Jio nework is not just one transactional business (like Paytm, PhonePe), but a wholesome one.

Reliance already has a fashion portal, AJio, but expect Jio to launch grocery and other related business.

Source: Jio now sets sights on a grand entry in e-commerce

OYO launches home management service to unlock second homes in holiday destinations

OYO has launched OYO Home, a Home Management service that utilizes the company’s existing on-ground operations, hospitality technology, housekeeping skills, revenue management algorithms and distribution prowess to deliver a hassle-free solution to second home-owners.

OYO Home in Goa
OYO Home in Goa

Piloted in December 2016, the team intends to focus on locked and unused homes across top holiday destinations in the country. It is already managing over 300 private homes including villas, apartments, bungalows and farmhouses in 5 cities.

Why now?

The 2011 census shows that 85,000 residential units remained unoccupied out of the total 5.76 lakh houses on record. The vacancy rates have increased by 62% since the last census. Home owners are unable to utilize these assets because there is no trusted maintenance and management partner.

“OYO is now taking up this role, having built expertise in various facets of hospitality, including maintenance, upgradation and repair, housekeeping skills, and marketing.” – OYO’s growth officer, Kavikrut .

An interesting business opportunity, right?

PayPal launches payment operations in India

PayPal has launched its India operations.  At launch, Indian consumers can use PayPal to shop online at some of India’s most popular businesses.

“Merchants offering PayPal will be able to process both local and global payments through PayPal, getting access to PayPal’s 218 million customers around the world and in India through a single integration.”

PayPal partners
PayPal partners

“We will be targeting the Global Indian and have partnered with merchants catering to this segment giving them a truly global seamless payments experience. Anupam Pahuja, Country Manager and Managing Director, PayPal India.

Meet the new grocery players: Flipkart, Quikr and Dmart

Flipkart has relaunched its grocery business. Flipkart launched its grocery business in 2015, but shut it down. The grocery business, now called Supermart (surprised that they didn’t called it SuperKart) is currently being piloted in Bangalore.

Quikr too is testing its grocery delivery business. It will allow customers to order anything, from grocery to restaurant food, from nearby stores and get it delivered at their doorstep for a fee (via).

Publicly listed company, DMart too has entered the grocery space.

Lack of clear differentiator? Unless the move to launch grocery is beyond increasing GMV, these companies clearly need a good differentiator to stay around in consumer’s mind. Grocery space has seen a large number of shutdowns, owing to logistical and low-margin issues.