Goa goes Cashless?
Could Goa go Cashless?
Goa is the tiniest state in India. It is most famously known for its long sandy beaches and relaxing way of life. But it is possibly going to get famous for another reason – as the first state in India to go Cashless.
Demonetization
On November 8, 2016, India – took existing Rs 500/- and Rs 1000/- notes out of circulation overnight. They can be exchanged for new notes, but the supply of new notes, and the process to exchange them is long and tedious.
Jokes, black humor, essays and memes have been written about this decision – debating the reasons why, the logic and timing, the effects on the economy and the impact on day-to-day life of millions of people of all walks of life.
But the article that caught my eye showed up in a digest of articles related to mobile payments:
Goa aims to go cashless from Dec 31, educates vendors about mobile payments
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- Street vendors
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- Town markets
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- Spice markets
Why Goa? What would make Goa a great test bed?
If this is part one of an inevitable march towards a Digital India, then Goa could serve as a great test-bed. It allows them to start small.
- Goa has a highly educated population with an appetite for innovation and technology.
- Tourism. This is the main industry in the state. Few international visitors would vacation in this paradise without some access to cashless funds, primarily via credit cards.
- It has a small geographical footprint – 1500 square miles of mostly coastline – making it easier to manage education and training. And, should the need occur, it would be a contained space within which to organize a roll-back.
Why not Goa?
Tourism. I predict that there will be more credit card transactions than mobile transactions from the international visitors in the short term.
The December 31 date is a very interesting choice as New Year’s Eve celebrations are among some of the most lucrative on the local calendar. All local recreation and transportation would have to buy in and make POS available to their clientele. As a tourist, it would be enticing to be able to enjoy an evening out without carrying lots of paper cash. Should there be a glitch, however, the timing could not be worse.
Goa has attracted a large migrant community from surrounding states and Nepal to serve the never-ending stream of tourists. These workers may resist the trend to cashless transactions as it may also bite into their tips.
The village effect
Just as the postman is the only touchpoint for many elderly citizens in various parts of the Western world, in Goa it is provided by local vendors who ride their produce through tiny side roads in quiet villages, loudly proclaiming their wares by ringing their clanky tinny bicycle bell or screaming “nishte (fish), nishte”.
A human experiment
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- Fisherwomen
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- Local Poder – village baker
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- Door-to-door artisans
This is going to be a very interesting social experiment. Because everyone – from the local poder (baker) to the fisherwoman, who currently travel the villages door-to-door selling their produce – is going to have to carry around a cell phone and a POS. There are going to be batteries to be charged. The familiar konkani banter and barter between a Goan buyer and seller will change. This puts a tremendous burden on groups of street vendors who already live on meagre earnings.
While the technicalities and economics intrigue me, I wish only patience to the millions of people who are managing this sudden and slow transition over the coming months. Go(a) in Peace.
K‘}…{‘Arena
I’ve started the conversation. I am VERY interested in this topic, so it is over to you! The Arena is your space for discussion:
} .. How has demonetization affected your daily life?
} .. Do you expect the banks to start charging street vendors for the POS?
} .. Could this be the opportunity for women to create co-ops?
} .. Could demonetization backfire?
} .. What could a day in Cashless Goa look like? Is it possible?
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INSPIRATION AND RESEARCH FOR THIS BLOG:
- Inspiration – a message from my sister-in-law wondering why I had radio silence on such a life-altering occurrence.
- Demonetization:
- Goa aims to go cashless from Dec 31, educates vendors about mobile payments
- http://timesofindia.indiatimes.com/city/goa/Banks-to-educate-govt-staff-vendors/articleshow/55674862.cms
- http://qz.com/843872/indias-rupee-demonetization-could-spark-a-new-digital-economy-in-the-cash-reliant-country/
- http://thewire.in/82872/digital-transactions-up-by-100-since-demonetisation-says-ncpi-ceo/
- http://www.globalresearch.ca/demonetization-is-going-cashless-a-possibility/5559021
- Slate – http://www.slate.com/articles/technology/future_tense/2016/11/india_s_push_to_a_cashless_society_has_a_high_cost.html
- Demonitization was logical step toward Cashless – Arun Jaitley
- Gates – India will be a digitized economy in 7 years
- I am flexing my writing muscle in the tradition of JK Rowling – and writing regularly, writing scared. Hope it gives you food for thought.
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