The error of demonetization has quite a few consumers and businesses viewing physical currency differently.
February 20, 2017
The rising threat and damage caused by counterfeit currency circulating throughout the economy has apparently reached a climactic point to the extent that the Indian government needed to intervene. Fortunately, there are several types of digital payments that can soften this financial blow – providing consumers and business owners alike with feasible alternatives to consider.
Mobile wallets essentially eliminate the need for consumers to carry their physical currency and payment cards around with them. This reduces the risk of identity theft as well as debit/credit card theft while increasing the convenience of consumers being able to make payments and send money through secure payment gateway options.
With more consumers using mobile wallets, this affects Indian businesses because it requires them to upgrade their front-end technology and equipment to be able to accept these forms of payment. For instance, legacy point-of-sale systems traditionally would not accept mobile payments. With demonetization transitioning a vast number of consumers away from using physical currency, upgrading these front-end systems becomes more of a requirement than an option for business owners.
Indian payment gateway solutions also present a feasible alternative for Indian businesses to consider. These solutions will help to repair the damage done by the corrupt black market of counterfeit currency circulating over the years by focusing on confirmed funds being used by authenticated bank accounts. Indian businesses will no longer need to worry about accepting fake money during front-end transactions. Using the best payment gateway solutions to verify transactions before the customer even leaves the register removes this security issue from the equation and allows businesses to increase their sales.
Payment banks were designed to revolutionize the economy, introducing a new type of financial institution that would focus on limiting currency deposits in a post-demonetization era. These banks are not allowed to issue credit cards or loans to their customers. However, savings and checking accounts can still be operated within these banks just like any other traditional bank. Removing credit cards and loans cuts down on credit issues and threats of credit card theft, which improves the financial status of the consumers, business owners and the overall economy.
Introducing Indian payment gateway solutions into the economy allows business owners to explore other virtual methods for processing transactions. For instance, physical currency being exchanged at the register usually meant physical invoices and receipts needed to be distributed as well. With the increased prevalence of mobile payment options and secure payment gateway solutions, however, this makes it possible for business owners to integrate invoice solutions into their accounts receivable procedures. Instead of handing out physical invoices and receipts, this online option allows businesses to send invoice and receipts virtually to their customer via fax and/or email. In addition to saving a considerable amount of money on paper, ink cartridges and toners, this will greatly increase the efficiency of front-end transactions and prove to be very convenient for consumers as well.
Stories by Sumity Paul