The second wave of the pandemic has had a significant impact on the handling and management of cash. This has in turn brought about substantial shift in behavioural patterns among the masses however cash still remains strong.  –

• ATM transactions have remained flat while the value of transactions have gone up. The ferocity of the second wave has scared people, forcing them to withdraw larger amounts from the ATMs with a view to avoid frequent visits which has resulted in increase in value of transactions. Average ticket size of ATM withdrawals earlier ranged between 2k-3k now its invariably gone up by 20% to 3k-4k across both rural and urban India.

• QR code based payments have picked up since retailers don’t have enough change and cash handling becomes a problem during peak hours. Early in the pandemic, consumers used QR codes more frequently for practical things and going contactless, for ex-  visiting a doctor’s office, buying things from Chemists or making payments at a super market. However latter, Consumers grew more comfortable with QR codes for financial purpose. Customers started noticing an increase in places where QR codes can be used for payments, and felt secure using a QR code to complete a financial transaction.

• With increase in e-commerce, COD has increased since customers want to see things before the purchase. Hence Cash stays strong with growth in Ecommerce. On the flip side, Digital payments have increased at the kirana store due to players who provide assisted digital services and Aadhaar

• Small ticket transactions are shifting towards UPI. For The average ticket size of transactions for UPI is around 1k

• Globally and now even in India, Cheque transactions are being replaced by digital. More and more people are now preferring IMPS instead of Cheque owing to which daily average transactions on IMPS was around 6-7k has now gone up to 9k

• In rural India however people prefer withdrawing through AePS vis-a-vis ATMs owing to which the average ticket size across ATMs is comparatively smaller. In rural and semi-urban India, while average withdrawals through AePS stands at Rs. 1500, at ATMs it is around 3k.

The above trend has been witnessed amid the ongoing second wave of the pandemic. If the same interests you, we can get you to speak to Mr. Mandar Agashe, MD, Sarvatra technologies who can share more insights on the same.