The Indian government has been promoting digital payments for a while, and Covid-19 really boosted this effort! With more people using smartphones and the internet, this change was bound to happen. It was impressive to see how smoothly Indians, including both millennials and older generations, embraced this shift.
During the pandemic, digital payments in India increased as people were encouraged to avoid cash to reduce virus transmission. With everyone stuck at home, people quickly adopted digital payments. Even after the lockdown ended, they appreciated the convenience and continued using digital transactions.
The government has also supported this move by removing Merchant Discount Rates (MDR) on digital transactions and offering incentives for using digital payment methods. “Covid has greatly accelerated the popularity of digital payments and cashless transactions; it is great to see the people of India adapting so well to the change,” says Alok Kumar Agarwal of Alankit.