Digital Payments In India
The transaction that takes place via digital or online is called digital payment. There is no need for physical money for the transaction; the payee and payer use digital payment to exchange money.
Under the Digital India campaign, the government has taken various methods to promote and encourage digital payment. The government aims to make India digitally empowered, faceless, paperless, and cashless.
Different Types of Digital Payment
There are ten methods of digital payment present in India.
Banking Cards are very much used in India. Cards are preferred because it is convenient, portable, safe, and easy to use. Cred and square are the apps used to manage transactions.
Unstructured supplementary services data (USSD)
USSD was launched for people who do not have proper banking facilities. This transaction can occur without an internet connection by dialing *99# on any essential feature phone.
Aadhar Enabled Payment System (AEPS)
AEPS is a bank-led model for digital payment that was started to leverage the presence and reach of Aadhar. Users can use their Adhar-linked account to transfer money between two Aadhar-linked bank accounts.
Unified payment interface (UPI)
UPI is a payment system that allows the transfer of money between any two parties easily with just a few clicks
As the name suggests, a mobile wallet means a wallet in which you can carry cash in a digital format. We see that customers link their bank accounts or banking Cards to their wallets for safe and secure digital payment.
Bank prepaid cards
Bank Pre-paid cards are pre-loaded debit cards issued by the bank; usually, they are for single-use or reloadable for multiple uses.
Point of sale is the location or segment where a sale happens for a longer duration. Debit and credit cards are the standard type of POS.
Internet banking, e-banking or Online Banking allows users of a particular bank to do transactions via the bank’s website.
Mobile banking is a banking activity that is performed via a mobile device. Nowadays, most banks have an app that can be used for transactions.
Benefits of digital payment
The government started promoting digital India to improve access to financial resources.
Customers can do online transactions when they see the convenience and security. This will promote the money movement.
Safety and efficient tracking
Carrying cash is a hectic task; there is a risk of losing money, and hence with the digital payment method, the Hassel to carry cash is reduced.
Ease and convenience
The digital transaction is seamless. It reduces cash dependency and transfers money easily and quickly. Traditional payment method adds risk factors, whereas, in digital payment, you can receive or send money within a few seconds sitting in any corner of the world.
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