Will the children of demonetization stick around?
Demonetization in November spurred greater wallet adoption from both customers and merchants: RedSeer research shows that amongst offline, small-time merchants, only 55% of currently active merchants were actively accepting wallets before demonetization, with the rest joining the bandwagon post-Nov 2016. Amongst customers, 36% of currently active customers reported becoming active only post demonetization.
However, wallet players need to significantly upgrade user experience to ensure long-term stickiness: RedSeer research throws up significant user experience gaps with wallet usage, for both customers and merchants. While customers are unhappy with the poor ease of wallet usage and the low cashbacks on offer, pain areas for merchants include the high commission rates, poor merchant support and slow app UIs. Players need to rapidly resolve these issues to prevent a movement of users to other fast evolving platforms like bank wallets.