Remember the old days when you had to stash your wallet/purse with cash? Admit it or not, moving around with it didn’t feel safe as the risk of losing cash always lingered around. But then, you had no option, did you? Fortunately, today’s age of digitisation takes away the risk of carrying cash and makes life simpler by a long shot. While digital payments have taken deep roots in the west, India only embraced the novel mode after ~3 years of demonetisation. Not that demonetisation was the only trigger for the economy to finally pick up the momentum for digital payments, but it does deserve some credit.
Digital payments have gained ground in India due to multiple factors like ease of use and accessibility. With more than 250 million smartphone users in India and over 30% internet penetration, mobile wallets are playing a major role in driving up digital payments adoption.
What is a digital payment?
Digital payments mean transacting for goods or services using various electronic modes instead of cash or cheque. The growth in this sector has been driven by the ease, convenience and security that it provides.
But why go digital?
Lower risk of loss: Cash is prone to theft and loss, especially when you travel frequently or transact in large amounts. On the contrary, digital payment such as mobile wallets and credit cards are secured with a secure gateway. It also has many benefits such as quick processing and easy access to funds.
Ease of transacting: Digital payment in India was hailed as a revolutionary innovation when it was introduced in the market. This technology gives you an opportunity to make payments without being physically present at the location where products or services are provided.
Quick and flexible: Digital payments are becoming more and more popular among ecommerce customers due to their convenience and quick operation. Customers can transact for their purchases from anywhere at any time as long as they have an internet connection.
Accountability: Digital payments are fast and easy. They can be accepted over any digital medium and you can keep track of cash flow on your mobile device. This helps ensure transparency and eliminate corruption, making business a lot more profitable for both you and the merchant.
Lower costs: Digital payments have a number of benefits over cash transactions. Most importantly, digital transactions are faster and more efficient, thereby promoting business growth. Due to the transparency and accountability that this method provides, it also reduces costs for merchants as they do not have to bear any cash-related expenses.
Financial inclusion: Digital payment is the most convenient and cost-effective way of transferring money. It offers security, convenience, reliability and speed in financial transactions
Ward off the danger of theft: This is a secure way of making payments. In case your digital payment mode is compromised, you simply deactivate the compromised medium and create a new one. This not only restricts access to your account but also provides you complete control over your digital transactions.
Rewards: Digital payment methods such as credit cards, mobile payments and so on offer attractive discounts, reward points, and cashback. These rewards ultimately reduce the overall cost of purchases, resulting in a better deal for consumers. Blending the latest trends in technology with innovative ideas on how to save money or make more will help those on a budget enjoy their shopping experience without ever feeling too worried about their finances.”
Digital online payment gateway includes all types of payments made through the use of an electronic device to make the transaction. These include debit and credit card, mobile phone, wearable devices, smartwatch and others.