70% of mobile phones buyers in India opt for non-cash payments

Non-cash mode of payment for mobile phones has risen to around 70% of overall sales compared with 20-30% a couple of years back, which have so far insulated handset sales from the cash crunch that’s affected several states, as opposed to the drastic impact during demonetisation.
 
Retailers and industry executives said purchases through credit card, debit card, e-wallets that offer cash backs and zero cost equal monthly installments given by finance companies, have risen dramatically. Most of the cash sales are now seen mainly in the rural or semi-urban areas, they explained.
 
“We have not seen any effect of the cash shortage so far, mainly because people buying through cash have reduced a lot,” said Subhash Chandra, managing director of Bengaluru-based mobile phone retail chain Sangeetha Mobiles.
 
“Our sales through non-cash mechanisms have gone up to nearly two-thirds of overall sales, compared with say around 40% some years back,” he said.
 
Avijit Mitra, chief executive officer at Croma, said the cash purchases done through their stores have come down to less than 20% over the past couple of years. “Today, 55-60% of our sales are done through cards, while EMIs and e-wallets like Paytm make up another 20-25%.” He added that cash transactions have now become limited to small-ticket items such as accessories and chargers.
 
The picture is in sharp contrast to last quarter of 2016 when the government banned Rs 500 and Rs 1,000 notes owing to demonetisation, which led to a sharp decline in handset sales, as cash in hands of consumers dried up.
 
According to International Data Corporation (IDC) India, feature phone shipments declined by 24.6% and smartphones sales dipped by 17.5% sequentially, in the quarter ended December 2016.
 
While some parts of the country are experiencing limited availability of cash, the Reserve Bank of India and the government have assured of more than adequate supplies in the system.
Shoot

Trending News

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Walmart may rope in Google parent Alphabet for the Flipkart deal

Internet shutdown cost Indian economy $3 billion from 2012-17: Study

Flipkart and Amazon plan mega summer sales in May

International sales now account for 48% of Twitter's revenues

70% of mobile phones buyers in India opt for non-cash payments

Amazon India expects groceries & household products to account for 50% of business in 5 yrs

India to come out with a E-commerce policy framework in 6 months

Online learning platform Career Anna raises Rs 3 Cr funding

Wal-Mart will offer to buy up to 86% of Flipkart

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities