Evolution of digital payments in India

Evolution of digital payments in India 

With the enhancement of technology, there had been a vast change in payment mode in India under the digital India mission. Digital payment has now become one of the major parts of our day-to-day life. According to the RBI report of 2017, there were about 1.06billion transactions through digital payments. People are readily accepting digital payment method because of the following factors:

  • Easy to use
  • Flexible
  • Many services (ticketing, e-commerce, banking, billing, etc)
  • On-demand payment option
  • Easy onboarding and off-boarding
  • Reduction in costs many times

The USA launched a mobile wallet/Paypal a long back ago. India dealing with some technologies came up with innovation by introducing BHIM (Bharat Interface For Money) for cashless payment through mobile phones.

Introducing UPI made a significant impact, approximately an amount of INR 509.62 billion was transacted in its initial period.

Though digital payments or cashless payments were flourishing with the time, still most Indians rely on cash transactions. One thing was to gain civilian trust was connecting citizen’s Aadhaar card with UPI accounts which help a bit in gaining trust in digital payments. Also, the only mobile wallet was not enough to run in the race of digital payment Government came up with the RuPay electronic payment card scheme to make transactions easier and cheaper. RuPay card was supported by almost all Mastercard and Visa and also provided safety and security.

UPI platform is the first platform in the World that uses bank account directly which was first established in 2009. Using UPI transactions were done by virtual IDs and provides security as it uses two-factor authentication. If you want to pay somebody through his bank account unlike past, you need not have his IFSC code, nor his account number and other details, UPI does that itself and give you a unique user Id and it’ll do all. Self-Wallet companies have introduced QR code by which one can commercially use these virtual ids.

 

 

 

Another digital mode, PayTm backed by Alibaba,  provides QR-based payments for services. QR-code is cheap and easy-to-use service to make digital transactions.

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