Digital Payments in Rural India – over next couple of years.

Predicting specific trends can be challenging due to various factors that could influence the

Digital payments in Bharat

trajectory of digital payments in rural and semi-urban India. However, based on the existing momentum and ongoing developments, I can speculate on potential directions this trend might take, and this gives me the confidence to go with a 100% digital payments mandate for Shunya. My confidence is boosted by the fact that UPI transactions in rural and semi-urban India increased by 118% in 2023, with a 106% increase in value. 

The short-term trends point towards:

1. Continued Growth: The trend of increased UPI transactions in rural and semi-urban India is likely to continue. Factors such as continued government initiatives, improved internet infrastructure, and growing smartphone penetration will contribute to sustained growth.

2. Further Adoption: As digital literacy improves and more people become comfortable with using smartphones and digital payment platforms, the adoption of online payments is expected to increase. I recently spend a few days purposely avoiding any cash payouts in rural UP and I was pleasantly surprised at the lack of complications – rural merchants of all kinds have adopted to the UPI / Paytm / Google Pay. 

3. Expansion of Services: Digital payment providers are likely to expand their services and offerings to cater specifically to the needs of rural and semi-urban users. This could include features such as language localization, simplified user interfaces, and tailored financial products like buy-now-pay-later to better serve these demographics.

4. Government Support: Continued government support through initiatives like Direct Benefit Transfers (DBT) and other subsidy programs will encourage more people in rural areas to adopt digital payment methods. The government's focus on financial inclusion and promoting a cashless economy will further drive the adoption of online payments. Was a little disappointed to see that some of the village based milk-collection centers were making cash payouts every fortnight, however, I think that will change fairly quickly. 

5. Infrastructure Development: Further improvement in internet connectivity and infrastructure in rural areas will also contribute to the growth of online payments. Investments in 5G technology and expansion of broadband services will enable smoother and faster digital transactions, encouraging more people to use digital payment platforms, however, internet availability and power (electricity) is now a non-issue. 

6. Partnerships and Collaborations: I expect the digital payment providers to form partnerships with local businesses, government agencies, and non-profit organizations to facilitate easier access to digital payment services in rural areas. Collaborative efforts to address specific challenges, such as connectivity issues and last-mile delivery of financial services, will help accelerate adoption.

7. Security and Trust: Ensuring the security of online transactions and building trust among rural users will be essential for sustaining the growth of digital payments. Continued efforts to enhance security measures, educate users about safe online practices, and address concerns related to fraud and data privacy will be crucial in maintaining user confidence. I was very happy to hear one of the merchants talk about benefits of receiving digital payments – lesser trips to the bank (or intermediaries) to deposit cash, lack of soiled notes, “more savings”.

Overall, while it's difficult to predict the exact trajectory of digital payments in rural India, the current trends suggest an extremely positive outlook with continued growth and adoption of online payment methods. My prediction – Bharat will pleasantly surprise us over the next few years. 

Blurring the offline online divide.

 

The more I interact with our partner retailers (and potential partners), the more convinced I am, that the advantages enjoyed by the offline neighborhood retailers - that of close proximity to the consumers, perfect mix of assortment & pricing, low cost delivery model and ownership of real estate; when integrated with the opportunities offered by the digital mediums, makes for a perfect commerce model. 

More so in the grocery and personal care domain. 

Neighborhood based commerce needs to be hybrid in nature, and enabled on all possible touch-points for the consumers. 

Hybrid Retail is what we at AaramShop have enabled for thousands of independent retailers - wherein we help them not just with relevant in-store technology, but seamlessly help take their inventories online via smart web-stores and mobile apps and supported by unique assisted shopping for customers. 

To learn more, please visit www.aaramon.com or write to me. 

Trends Study - FMCG, India & Digital.

Google and Bain Consulting's recently released report on the impact of digital and ecom on the FMCG brands was extensively covered.

Of the multiple aspects of the report the two that leaped out for attention were:

50x projected growth in about 5 years - with about 5% of the sales being online.

 The other was that in 5 years 35% (35 Bn USD), would be digitally influenced sales.










The critical role of "digital" for FMCG brands is clearly established. Fun times ahead.

How 2013 Transformed Digital Marketing.

Came across this wonderful Infographic on Think Inside - It was indeed a wonderful year for digital advertising. 

"New technologies took off, helping brands, agencies and publishers reach today’s constantly connected consumers more easily and effectively than ever. Creative got more intelligent, campaigns spanned screens and formats, media buying went real-time, and new metrics for success emerged." 

Here’s a look at the big shifts that redefined the industry this year—and for many to come.

Related articles

• Redefining Advertising: How 2013 Transformed Digital Marketing
• 2014 State of Digital Marketing Infographic
• Re-defining TV and video
• CPMs Hold Strong as the Standard for Digital Ad Measurement
• Making Sense of Blurring Channels Marks the Latest Key Digital Trend

Digital is dead.

Brilliant.

The evolution of the "path of purchase".

Conventional wisdom has always been that most brand purchase decisions are made in the store. 

But with the new, digitally empowered consumer entering the store better prepared than ever before, is the new reality that most purchase decisions are made at home or on the way to the store?

This wonderful white paper by The Hub seems to suggest that the truth most likely lies somewhere in between.

The white paper goes on to list how can manufacturers ensure that their brands are included in the consideration set and make the final cut. They must identify shopper needs and behaviors at every phase along the path-to-purchase and deliver relevant experiences that shape purchase decisions, from pre-purchase to point-of-purchase, from consumption experience to post-experience reflection.

The consumer’s media consumption methods have changed and therefore the relevance of methods in which a brand can be relevant to them. The 24x7 access to socially connected devices is the single largest factor to change dynamics of marketing. The white paper reemphasizes what we are trying to create with AaramShop – an integration of the Zero Moment of Truth (ZMOT) with the First Moment of Truth (FMOT) of the brand. Read more about it here.

Related articles

• Mobile Disrupting Path to Purchase.
• A 2012 Look at the Consumer's Path to Purchase.
• Real Paths of Purchase.

Key Points About Integrating Traditional and New Mediums

Some brands have been forged in the digital fire while others have had to (or eventually will have to) jump into it. The biggest problem Michael sees here is we are trying to treat these two entities as one.

These are two very different situations and need to be treated as such. Those outside the bubble, who did not build their business in these channels are interested in what digital has to offer, but they don’t always need it just yet. It’s not that there isn’t a juicy opportunity, but balancing multiple channels (especially a mix of traditional and digital ones) is no easy feat.

Michael writes that we often try to show traditional brands the success digital brands have experienced. It is alluring, but it isn’t always relevant. Rather than enticing prospects with purely digital examples like Zappos or even those who have long had digital efforts like Levis, one needs to understand a few key points illustrated wonderfully here in a recent post by Michael Schechter.

Related articles

• 2012 Digital Marketing Predictions - What's In Store?
• Multichannel Campaigns Increase Reach, Branding Potential
• Digital Media's Influence on CPG / FMCG Sales
• The Path-to-Purchase: How is it Changing in 2012?

A very comprehensive report on Mobile Trends.

2010 Mobile Influencers: Trend Predictions in 140 Characters, By TrendsSpotting

View more presentations from Taly Weiss.

Yes, I am hooked to Stumble!

I don’t seem to get enough of it and am hooked, have been speaking about it at every opportunity I get and to everyone. Do you still spend time searching for good content sites on the web? Have you never used StumbleUpon ? You must. It does not matter whether you are a casual browser, heavy user or a webmaster – there is good reason to move to stumble.

As a user you can modify the “stumbling” by your interest area and you will get highly relevant content that matches your preferences. As a site owner or webmaster, one gets substantial and steady traffic. My blog and sites have seen a steady increase in traffic from StumbleUpon and probably the best and most targeted traffic I have ever seen.

StumbleUpon, is easy to install and trust me, you will be hooked as well.

From a webmaster or site owners’ perspective reasons to take Stumble more seriously include :

New visitors; StumbleUpon traffic means tons of new visitors, visitors that are really interested in your subject / content / topic not just any visitors. Further more the visitors tend to rate your content and get more visitors on your site.

Most pages/visit: This analytics is about the level of interest that the visitors have in your content. Due to the nature of visitors, the interest levels are high and hence the page views as well. Visitors stay longer on your site.

Extremely low bounce rate; The user traffic’s bounce rate (use a tool like the Google Analytics to find out more) is the number of people who land on your page and leave instantly (maybe because they did not really want to come to your page). While this trend is very high from traffic sources like Google & Yahoo, the bounce rates from Stumble are extremely low.

International traffic; You will get subject interested visitors from across the globe. For me it has meant that I have been able to exchange my views visitors from countries in Africa & Latin America besides the normal traffic areas.

Instant traffic; Unlike long wait which you need to put in on engines like Google and Yahoo and the complexities of Page Ranks etc, Stumble gives you instant results.

So go ahead and download the tool bar, and happy stumbling. And while you are at it, give my blog a thumbs-up as well J

Try this & record time you spend on it.

Another sticky place to hang around and spend time on the web is Net Disaster, much on the lines of “putting things you always wanted to in the microwave”. However, unlike the fun with microwave, this does not lead on to a specific product line. What is also interesting that it allows one to embed the app on any site and the relevance created by using the textual context of the webpage. No wonder 72 million trials have been generated on this so far.

In order to try and understand, record your own time using this and also the viral which it generates.

The interactive freedom.

What really makes this site http://www.mvm.com/en/index.htm stand out is that it goes way beyond only creating / generating a buzz. The content is interactive in the real sense of the word and will draw visitors, ensure that they try out the product – virtually and then buy. It provides an alternate (and may I say better) shopping experience.

While early adaptors of interactive content, like the Subservient Chicken, generated not only buzz, but a good amount of traffic for Burger King – my believe that a lot of “interactive content” pushed in by various brands and agencies is more to do with “me too” buzz rather than looking at an ROI from a good interactive web presence.

My belief is that success has to be found on combination of buzz (to drive traffic) and utility (to ensure ROI). Only buzz to me sounds very much like the “eyeball” game prior to the dotcom meltdown. The buzz needs to be taken over by usefulness or stickiness of the product and MY VIRTUAL MODEL achieves the same in a simple yet exciting manner. Anyone (some of my pals included) who has used this app (if I can call it that), have taken a few seconds to understand and then have stayed online, trying different brands, styles and colors and all on models which are their clones (well almost) – do you want to guess the average time that an individual can spend on this site?

Now imagine the “the long tail” of product line which can be retailed using this model – it is never going to be possible for a traditional retailer to stock the options.

This is the start of the end of brochure-sites on the web.