Banks and e-commerce giants colluding to destroy offline indigenous business.With growing craze of online shopping among people in general as well as ever expanding online market in smaller towns is threatening the offline business. This danger has become more evident with banks collaborating with online e-commerce sites like Amazon and Flipkart to provide cashback on purchases upto a certain limit.
Banks provide huge cashback offers on their respective cards and that is an easy way to entice anyone to make online purchases. In the end the consumer gai s as he gets huge discount, banks gain with huge volume of transactions and e-commerce sites with huge sales, but, a section of business i.e. the offline business suffers as they do not get benefit of cashback discounts by bank.
Banks do not offer cashback upto 10% or any other percentage on offline purchases. Shouldn't banks also offer such incentives offline so that people also make offline purchases?
Here the small business and offline business sufer and that too very badly. Shouldn't there be some mechanism to bring about a level playing field for both offline and online business? Banks should be transparent and fair in offering incentives for both online and offline transactions.