Pros and Cons of Using Paytm, Freecharge and Others
BENGALURU: As the country takes rapid strides towards cashless economy after demonetization, the initial chaos and confusion has given way to genuine concerns and skepticism. Will this drive to promote cashless economy lead to a better tomorrow or will it turn out to be a damp squib and add to the stress and additional charges? To provide impetus to this drive, the government has come out with discounts and other offers on digital transactions. But will these be substantial enough and, along with other benefits, counter the higher risk of identity theft once the currency notes are back in circulation? Gadget now takes a look at some of the benefits and drawbacks of digital transactions and what’s in store for the common man.
Benefits
The ease of use is a major plus point for digital transactions and you don’t need to carry cash, which comes as a welcome relief for people. It’s also a safer and easier option when you are traveling. There are a number of discounts and offers initiated by the government to promote cashless transactions and the waiver of service tax on card transactions up to 2,000 is one such move. Similarly, saving on rail tickets, highway toll, or purchase of insurance can help cut your costs.
This move to go digital also helps you to keep a track of your spending and manage your resources well. Controlled spending can also lead to better investments and if the same amount of cash does not flow back into circulation and people continue to use mobile wallets and cards, it is also likely to bring down the latte factor. Another advantage of going digital is that you don’t have to worry about loose change and you can give the exact amount to shopkeepers and others without worrying about anything.
Drawbacks
Identity theft is one major problem that is going to get bigger, as more and more people take to digital transactions. And the government’s move to get rid of the two-factor authentication process for transactions up to 
2,000 is only going to make the matter worse.
Given the tedious process that people have to go through, it’s imperative to have a proper grievance redressal system in place. But right now, it’s not there and it might turn out to be a financial nightmare for people. There’s no stringent legal process to prevent online frauds and this might only add to the woes of the common people. The over dependence on phone is also a major worry. What happens if you lose your phone and are rendered helpless in a small village or a remote place? With lack of proper banking and financial infrastructure in place, it might turn out to be highly problematic if you are short of cash.
India has a low Internet penetration of 34.8%(2016), according to the Internet Live Stats, and only 26.3% of all mobile phone users have a smartphone (2015), as per Statista figures. This might prove to be a challenge for the tech-unfriendly people, who will need more time to adapt to this new technology.
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