Why Small Value Transactions happen in Cash across World. Why CIC to GDP is so High..
Why does #SmallValueTransactions (SVT) still happen in #Cash across World ? Are we not serious to Monitor SVTs over Large Value Txns ?
I can think of following reasons Only, please add more..
1. Small value txns have low involvement so keeping a transaction trail is not important
2. Annonymity in cash,
3. Lack of payment Infrastructure which can help to carry small value transaction,
4. Lack of trust on Technology by people who get involved in SVTs
5. Cash dependence on entire Value Chain
6. Cash requirement for Day to Day operationss
7. Transaction fee for Merchants on SVTs hurts
8…. Please add more..
I have seen and read this accross many Countries that CIC (Cash In Circulation) to GDP ratio is very high. Be it in #Vietnam, #Bangladesh, #SriLanka, #India, #African Countries and many #European countries too.
We have to design and encourage to Digitise #SmallValueTransactions. Large value transactions are too much extent digitised for various reasons..
Please share your thoughts..