wallets witnessed a decline in average transaction values between october and december while the average value per transaction in prepaid instruments including mobile wallets was rs475 in october it fell to rs224 in november before rising to rs238 in december the report said according to the rbi report released in february the volume of transactions in prepaid instruments fell from rs878 million in december 2016 to rs873 million in january 2017 belgavi said some of the reasons for this decline could be because of lack of education and awareness of the security aspects of digital payments also deficiency in grievance redress facilities for customers and merchants may have prompted many to move away from digital payments he added moreover with limits on mobile wallets in respect of usage and transfer vendors got frustrated as their money got locked up said neha punater partner managing consulting ita tech enablement kpmg india this money is useless as vendors cannot use it to make payments to dealers who largely demand cash or cheque she added wallet companies said a revised slab by the government supporting average business of retailers could help them in serving users optimally this shall help the government and players like us in realizing our dream of a cashless india bipin preet singh founder ceo at mobikwik said the high cost of pos terminals around rs8000 to rs10000 also acted as a disincentive for retailers to pass on any benefits to customers though the real reason punater said why some merchants declined to accept card payments once cash became available was to evade taxes she however added that the cost of digital payments would come down in future with the government deciding to remove import duty on pos terminals though there are fears the volume of digital payments could slip further with the rbi aiming to remove all withdrawal limits by midmarch dheeraj aneja director financial services advisory services payments practice ernst young india said with cash back in circulation a more sustainable growth in digital transactions at merchantend should be expected innovations such as the unified payments interface bhim app and aadhaarbased payments will only help in accelerating the adoption of digital payments he said tnn published on mar 5 2017 at 1118 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etretail app get realtime updates save your favourite articles scan to download app paytm online transactions rbi digital payments demonetisation homenewsindustrycash scores over digital payment modes