Suravi Regmi

The Nepali domestic market is distinguished by the tremendous utilization of web banking, cell phone banking, QR code payments, Money Express transactions, and an escalating amount of ATM users, which illustrates the advancement of the digital market in the country.

This quiet transformation mechanism has been a tipping point towards shifting consumers’ perception towards the convenience of technological adaptation and substitution of conventional marketing techniques. These days, internet services are serving extensively in every possible marketplace like banks, shopping centres, small marts, or individual “Kirana” shops with swipes of cell phones and with a tap of laptop cursors to transact through digital card readers.
Buyers, primarily from city areas, have gained digital literacy and are regarded as tech-nerds able to estimate the benefits of using such digitised protocols, products, and services about regular physical transactions.

Current Digitisation State
From the aspect of consumer behaviour, digitization has opened gates for consumers to make informed decisions backed by awareness of various products and services available in markets. It has forged opportunities ahead of customers and aided them in making reasonable choices by creating several alternatives of useful technologies. Luckily, digitization has made it simpler for customers to realize the opportunity costs involved while opting for the best alternative presented to them, which can be time and search costs.

Even among digital payment systems, they can enjoy the privileges of safe cash transfers between accounts of sellers and customers while preferring online payment systems. Getting on with the accelerating number of payment gateway transactions, particularly in this scenario of post-Covid-19, we can probably believe that digitization would stay deeply grounded in practice in the future as well.
Digital consumption patterns and the tradition of digitization are frequently discussed topics, but the continuity of debates over new forms of digital strategies is often an untouched matter. Consumer willingness towards approval of digitization and adoption for consumption intent is the major driving factor for its rising popularity. Post-Covid-19, the situation has been a thrust for ascertaining consumer inclination towards online transaction channels.

Nowadays, it is noticeable in banks and financial institutions the drastic reduction of people in queues to make payments for banking transactions due to the easy and convenient routes provided by financial regulating bodies such as Nepal Clearing House through its authentic repayment computer and mobile applications. However, this kind of online payment system rarely resists due to factors such as hesitant consumer nature, and age-gaps variation. It is visible that people from the elderly age bracket are sceptical towards insisting their children help them use repayment applications. They are highly dependant on physical transactions and face difficulty in getting habituated to using mobile and computer payment systems.

For instance, personal mannerisms and insecure emotions act as the prime reasons for consumers to withstand any innovation in the digital space. The theft of consumers’ data from transaction histories is one of the major causes of insecurity towards the adoption of online transactions. Cases of children misusing passwords may lead to shunning of digital transactions for payments in the future.

Service Utilisation
The utilisation of digital services necessitates the availability of a steady and dependable internet connection. Another source of opposition is the lack of a reliable digital infrastructure. Furthermore, Internet services in Nepal are expensive compared to other nations in the area, putting service providers at a disadvantage. Furthermore, there is no specific pricing policy or regulatory framework to guide the fees they charge for digital transactions. As a result, customers are wary of the quality and affordability of digital services like ride-hailing applications, online meal delivery, and online shopping.

Despite the advantages of digital transactions, the wellness of consumers is sometimes overlooked. Unfortunately, when consumers are misled on price or when products or services do not fulfil their needs while transacting on such online platforms, there is no system in place to correct the situation. Customers have recently expressed their dissatisfaction and fury when ride-sharing and food delivery people fail to arrive on time, cancel reservations at the last minute, or charge more than normal taxis or bikes.

Another avoidable aggravation is the lack of a well-framed and user-friendly return policy expected from online digital purchasing platforms. Government portals and platforms are no better, and some of their apps have only been operational for a short time following their launch. Of course, the most recent e-passport debacle is a case in point. Consumers will be hesitant to use or even test digital services as a result of such failures.

Way Ahead
Planning, developing, and executing a comprehensive digital ecosystem is the best and only method to overcome consumer resistance to any digitization activities. All stakeholders, including the government, service providers, customers, and suppliers, must come together and act as essential drivers and active enablers in the digital transformation adventure for this to happen. Consumers’ mindsets may continue to be adverse and close to adopting such digital advancements till it becomes a reality. Every effort should be made to persuade them of the value of innovative products and services, the reliability of service providers, and the dependability of the infrastructure supporting those digital services. Further, only when interventions are created and implemented to raise digital knowledge among the public will the majority of the population be brought inside the scope of digital consumption. Holding the rural-urban digital gap in mind, the government should guarantee that all customers are taught how to make the most of digital advances and platforms across the country. This would alleviate any customer anxiety and help close the digital divide that exists now.

(Suravi is a BBA graduate in marketing from Kathmandu College of Management)