As much as 56 per cent of the merchants still do not accept digital payments because of the risks and cost of handling cash along with a fear of income loss after adopting digital payment solutions, a new survey has said.
"More than half -- 56 per cent -- of the surveyed merchants still do not accept digital payments. Fear of an income loss can be a key determinant for merchants to adopt digital payment solutions. Reduced time, risks and costs of handling cash is another reason," a Confederation of Indian Industry (CII) - Deloitte India survey said.
The study titled 'Demonetisation for Merchants - The Promise, Potential and Practicalities' was conducted to gain an understanding of changes after demonetisation and focussed on two modes of digital payments -- cards (debit and credit card) and mobile wallets.
Sixty-seven per cent of the merchants who accept digital payments said that they did so because of customer demand post-demonetisation.
"Customer demand and convenience are the primary reason for merchant's to accept cards and mobile-wallets," it added.
