Mobile Apps let us think beyond convenience
Some time back I wrote a post about some wishlist to the finance minister for budget one of my wish was that we should discourage use of cash.
I have a few problems with cash. Mind you these problems are not with money but with form of money which we call CASH
So here is the list of problems with cash
1. It can be stolen
2. It is bulky
3. Not always you will have right denomination or change to tender cash leading to unnecessary hassles and time delays.
4. But my biggest problem with cash is that it leads to illegal money or black money in the system which is unaccountable for. As cash can be easily hidden and transactions can be hidden from the tax man.
So my suggestion was that we use check / online transaction for our our financial needs. Now with penetration of mobile phones this has become very easy. Evey a subzi wala carries a phone and if you make sure everybody is accepting the money via say mobile payment or e-payment gateway then it all becomes a transaction that comes into the system and is easily tracked to the source.
Now what you are doing by using a payment system via an app is that you are bringing the masses of people in to the banking system and you are eliminating the cash transactions.
It may begin with small amount but look at it this way
You pay 190 Rs to your Subzi Wala.
His daily sale is say 5000 Rs.
Then next day he pays 5000 Rs to the wholesaler
Now the wholesaler ( where typically the big black money transaction happens ) has no option but to further make payments via banking system. As the wholesaler is dealing in Lakhs and crores of rupees suddenly you eliminate a big chunk of black money from the system. Once the GST tax is is implemented in the country you are eliminating a complete chain of black money in the system.
This will lead to increase in the tax collection and it all started with the 190 Rs you paid to the Subzi Wala.
Thus I am in big favor of using mobile apps for making payments as it is not only convenient but in the long run it will help the country also.