The last few years will be marked as a metamorphosis in the history of the Indian economy in several aspects, and making payments is one of them. The urban population has gradually taken up the pace to follow the concept of Digital India when it comes to choosing a mode of making payments. That’s because no one wishes to carry a thick wand of cash inside their wallets amidst the uncertainty of security. Hence, digital payments in India are a blessing in disguise.
But how about a sudden change in the economy; from carrying physical cash to relying on smartphones to tap and pay at the counter? Honestly, we have demonetization to thank for this transformation. Remember the night of November 8th, 2016, when the Indian prime minister decided, which led to long queues outside for the next couple of weeks? Of course, we do, and that’s where the Fintech industry began to penetrate roots in the Indian economy, and options like the Bharat QR code became a thing to scan and pay anywhere, anytime.
Let’s understand a little more about digital payment in India and how they have an advantage over carrying physical cash in the age of the metaverse.
What are Digital Payments?
Since the beginning of digitization in India, digital payment modes have become necessary for every retail or grocery store. Customer satisfaction would always be the need of the hour for businesses, and that’s why sticking the Bharat QR code on their cash counter or other UPIs was essential. In other words, whenever an electronic method is utilized rather than making payment through cash, it is known as “Digital Payments.”
Surprisingly, an economy that emphasizes employing cash to make payments is rapidly moving towards distinguishing new online methods of paying merchants or vendors. That shows how the fintech industry is booming and running in the race to make billions. Here are a few of the payment modes introduced as part of Digital Payments in India:
Digital payments have garnered much attention in India due to the coming of mobile wallets. Several Fintech startups (many now unicorns), came to India with the concept of making payments through mobile wallets without carrying your debit card. The rule is to scan the QR code or connect it with your debit/credit card, and when you wish to make the payment, it will ask you to enter your mpin or CVV. Hence, making payments has never been so easy before. It is a secure method and offers enough protection from any cybercrime waiting to take place.
All financial institutions have started giving their customers the privilege to transfer amounts from one account to another. Once you opt for the mobile or internet banking option for your account, it will be easy to manage your account and track the transactions you have made in the past. Once the 2-way authentication factor is enabled, the security of the transactions is improved.
UPI (Unified Payment Interface)
The famous Bharat QR code came out of the UPI method of making payments exclusively in India. Once you scan the QR code with an app that supports the Bharat QR UPI method, it directly takes you to your debit/credit card or even bank account, enabling you to send funds to another party. Merchants now often prefer to use this method for a seamless payment process. Using UPI gives one a unique VPA (Virtual Payment Address) number, which could be utilized when transferring funds through the UPI method to another party/vendor/merchant.
Advantages of choosing Digital Payments Methods
- Relying on digital payment modes is much more swift and easy compared to handling cash transactions. That’s why businesses are now indulging in keeping online payment methods handy for convenient checkout procedures for customers.
- In times of emergency, when you need to send or receive urgent funds, you do not have to be physically present to make a transaction. The online payment method makes it accessible to pay from anywhere.
- Fintech brands offer discounts and rewards for making a particular number of monthly transactions. So, be ready to receive exclusive offers.
- Chances of loss or theft of cash significantly reduce when one chooses an online payment method as the stringent security and verification option keeps fraudulent activities away in most cases.
Other ways have gradually become familiar in the economy. However, the abovementioned have a firmer grip over how payments are circulated. It is essential to realize the advantages of opting for digital payment methods and be part of the revolution that is to come.