Indian population has been familiar with digital payments for quite some time. Demonetization in 2016 and lockdown in 2020 are the major factors for the rapid growth of digital payments in India. People felt the need to adopt the cashless route and switch to online payments. Today, people use digital means to pay for day-to-day monetary transactions like grocery shopping, bill payments, ticket booking, and more.
Nowadays, there are various modes of online payments available that encourage cashless transactions and help in converting India into a cashless economy. In this post, you will understand how digital payments benefit individuals and businesses to meet their financial goals.
Understanding digital payments and their methods
Digital payments are those transactions that are done through digital or online modes. Also called electronic payments, they are made over the Internet and mobile channels. There is no physical exchange of money, where both the payer and the payee use digital modes to transact money.
Some of the popular digital payment methods in India:
Mobile Wallets: A smart way to carry cash in digital format, the mobile wallet has changed the face of day-to-day transactions. This allows you to pay using your smartphone or tablet. You can link your account or card to a digital wallet to load money into the wallet. Today, most banks offer e-wallets and various major financial institutions have digital wallets.
Unified Payments Interface (UPI): Developed by the National Payments Corporation of India, UPI is a real-time payment system that allows you to send or receive money instantly from one bank account to another using any UPI mobile application. And it does not require any card or bank details. It offers seamless merchant payments, fund routing, and useful banking features, making it a popular payment method in India.
Cards: A proven way to make digital payments that are used widely in India owing to its benefits of convenience, control, and security. Customers often use cards to purchase items in stores or online. Prepaid, Debit and Credit Cards are some of the common types of cards available.
Internet Banking: Internet banking or online banking enables the customers of a bank to make financial transactions using the bank’s website. IMPS, NEFT and RTGS are some of the common ways to make online transactions. Customers can also conduct various other financial activities using Internet banking.
Mobile Banking: Mobile banking allows the customers of a bank to conduct transactions and other financial activities using a mobile device. Nowadays, banks provide customers with their mobile banking app offering both convenience and speed. Mobile banking offers various payment methods and services like IMPS, NEFT, RTGS, bank statements, bill payments, investments, and more.
How Digital Payments Are Beneficial For Everyone
There is a range of advantages that digital payment offers to individuals and businesses. Instant money transfer, ease of making payments, and seamless experience are a few top benefits of transacting digitally. Digital payment methods are safer and more secure than traditional ones like cash and cheques. And you can send/receive money from anywhere 24/7. Nowadays, more and more people transact digitally using mobile phones where net banking, UPI, and mobile wallets contribute largely.
Digital payments in India will grow exponentially and pave the way for a cashless economy. InstantPay is a leading neo-banking platform in India that empowers both individuals and businesses to transact digitally and safely. The platform offers various payment methods while providing useful features and tools to manage your finances in one place.
Providing a better experience to customers, InstantPay gives access to financial resources and simplifies banking for all. Keeping up with the mission of Digital India, the platform brings full-stack financial services and products to a larger audience.