Cashless - Consumer downsideslogic
Replace cashless with UPI, PayTM, Freecharge, XYZ wallets.
- Cashless lacks clear dispute resolution process for failed transactions. Your money still sits in limbo for their technology failures and it becomes your job to follow with customer care. Keep a tab on liability laws for technology failures / security issues.
- Solution : Seek better regulations in terms of dispute resolution, let industry establish standard mechanisms with acceptable response / resolution time. Demand greater liability for cyber security failures from cashless providers.
- Cashless - Merchant transaction costs are still not 0. This inflates the price for everyone.
- Solution : Engage with policymakers to get the #ExpenditureTax scrapped. Banks / Fintech can't eat a portion of money for running essential infrastructure. Building / maintaining digital infra is no more a value addition for which banks have to be incentivized, its duty of banks to adopt tech if cashless is going to be pushed to consumers.
- Cash To Cashback -- Taking your money which earns interest and is full currency, converting into cashbacks which can only be spent at limited establishments. Its upto consumers to resist cashbacks, else completely move into a spending economy from saving economy.
- Solution : In a market economy, the best solution for this is to tighten the purse strings. Avoid cashback sales, resist purchasing, seek better price, by not buying / giving up to temptation.
- The transaction data is out there for PSP / fintech companies to do extensive spend pattern analysis. This could eventually lead to dynamic pricing of common good and services. (We are already paying non-personalized dynamic pricing for air/train tickets, personalized dynamic pricing for Uber/Ola rides) These dynamic pricing without proper checks and balances will surely bleed out your wallets
- Solution : Engage with policy makers, get privacy law, limit / regulate use of collected data for specified purpose only. Tighten the purse strings again. Support business' which are more data friendly to the customer. Negotiate to pay a small fixed fee, instead of giving out sufficient data to feed pricing algorithms
- The data is also out there as part of larger surveillance.
- Solution : Engage politically to get more rights for citizens to avoid constant surveillance.