"Digital Payments in India – Glimpse of the influential trends in India’s digital economy"
Create things which ease your lifestyle and that's what a digital payment industry is trying to make.
In 2019, I don't think that anybody is there who don't know about the digital payment systems. As everybody nowadays prefers to be cashless and there are various new techniques that are become popular in 2019 like google pay, phone pay, BHIM UPI, paytm and many more. The debit cards and credit cards are always in use and will stay for the long run. In 2022, one will be a new digital India where the retail chains will also adapt the digitalization easily.
The demonetization teaches a very great lesson that goes cashless. Our Prime minister Narendra Modi has taken a very crucial step and help in the growth of payment industry as well. This will increase the number of digital payment channels in the country of India.
Why digital payment industries are important?
Digital payments have developed as an important tool for encouraging financial formation. Because it reduces the cost of rendering financial services to common people. Also, improves the security and availability of using savings, payments, and insurance methods. Another factor makes it important is for the layman language. That is it reduces the system of theft and robbery everything is fae in your mobile. It's you who needs to take off all the information related to digital payments.
Don't share your any detail with other people like getting phone calls from banks. They ask for the details of the digital payment way never share any OTPs with them. Even now for opening a bank account one can easily apply online. The person will visit you home and complete the KYC process, you can open a bank account. For example, Kotak Mahindra Bank has started a new system of an online debit card.
Digital payments are secure?
Yes, the security in Digital Payments is safer. As we go into a cashless economy, there is forever running questions put over the assurance in digital payments. The answer to their question is Yes. The government is pushing steadily towards a super-secure process of making payments by mobile phones and other cashless means.
Digital payments industry growth factors
The digital payments are introduced by the various industry. They are getting the benefit of it, especially through the urban area people. Everyone is using paytm and google pay these digital channels are making the traditional operation of cash to be cashless. All transactions paying system are becoming convenient to the people. In a country like India people like the works which are less time consuming and that's true. The factors that help to grow the digital payment industry are:
- Availability & convenience
There was a time when the people needs to carry cash or keep visiting ATMs to withdraw money. Today also we use ATMs but the more usage of another digital payment has increased. As people now can transfer, send, withdraw money from the usage of various apps like google pay, phone pay and paytm. One can easily do so just sitting in your comfort zone at any time and in any part of the world.
- Lower risk
Digital transactions are secure and safer than traditional transactions. They are processed by a secure gateway that is RBI. RBI is a regulatory body that supervises the payment industry. They provide various circular and guideline to govern prepaid instruments, intermediaries and the payment system operator. Even the system of KYC was introduced so that the cases of frauds and cheats can be easily traced and eliminated.
- Effortlessly traceable
The tracking process in the digital payment industry is effortless. You know its easy all the details of payments are saved with a merchant-specific database. The customer and merchant can easily access the payment information. This avoids the conflicts and confusion realted to tracking payments
- Continuous growth is a factor
The digital payment industry will get a continuous growth in coming years too and mediums of paying will go downwards. Most important saving time and money for both the customer and the customer and the seller. It's been years that the ATMs were introduced but till date its an updated channel for taking out money. Just the payment channels keep adding with the old one and the series goes like this. The goverment keeps taking new initiatives to improve the digital infrastructure.
All of the factors contribute to the growth of the digital payment industry in India.
Future of Digital Payments Industry
- A PayStand is the future of digital payments. It gives an enterprise a great level of payment technology that is suitably flexible for all business. It will be used to process and settle payments. The platform will be created for onboarding for new users swiftly. The low-cost, frictionless B2B payment network automates standard processes and reduces transaction costs.
- The payment industry will bring a change in process of cheque usage and its transactions. Change can be seen in future is digitised transactions. It is assumed that the amount of cheque-based payments will decrease by 2022.
- RBI assumes that the payment base like UPI and IMPS to record average annualised extension of over 100 %. NEFT at 40% over the concept period.
- The apex bank demands that the amount of digital sales is demanded to grow more than 4 times from til 2019.
- The RBI is planning to grow the amount percentage of the sale of debit cards transaction as it was going down.
Indian industry is growing at a rapid phase. In coming years we will witness a great transformation i the Indian payment industry. The future is going to be more bright. The new ways will be introduced that how money is transferred in the Indian economy.
Work towards building a digital India and we are will be no more called a developing country.
This article is written by Shrishti Jain a content writer at Legalraasta. Its is the largest platform in India that provides various service like payment bank licence, Digital signature, etc. Do visit or website for reaping the best and valuable service with inexpensive costs.