The ever changing payment methods are being upgraded with time and the advancement of technology. In the year 2016, when demonetization happened in India the government tried to give the cashless economy a boost. But from the 90s payment gateways, India was steadily progressing towards a cashless economy in the form of Credit and Debit cards, ATMs, MICR. Later on, people started using services like digital wallets, recharge vouchers and prepaid cards. Therefore, payment services in India have been constantly changing with the application of new technology and innovations.
After the rise of financial technology companies in India, new transaction methods were added. These methods include initiatives like QR codes, FASTags, interoperable digital wallets and NFC payments. With a huge population of more than 1.8 billion, India certainly holds a bright future in terms of digital payment and payment gateways.
Due to the pandemic lockdown imposed all over India, social distancing became the norm. This has also influenced customer behaviour towards shopping and paying utility bills using payment gateway in India. With the help of the government, initiatives like “contactless payment” became a game changer throughout India. Citizens embraced digital payment methods and used them to pay utility bills. From major shopping marts to local shops everyone deployed the digital payment medium for making transactions.
More than 60% of people in India use mobile phones and online banking systems to make payments and continue at that in the post covid situation. Many digital platforms and digital service providers have seen all time high businesses during the lockdown period. Financial technology companies and service providers are playing a pivotal role in the digitalization of the economy and cashless transactions. Some key benefits of digital payments are described below.
Easy to make payments
Paying through the digital method is hassle free and time saving. Without using any cash, one can simply make payments using their mobile phone and a bank account. In some cases, the payment gateway in India rewards their customers for doing transactions using the digital method.
With every transaction being documented and recorded in every step, the opportunity to lose money becomes nil and the illegal activities decrease. The sender and receiver have total transparency over the whole transaction process.
Corporate sectors had an exponential advantage after the increase in digital payment methods. It has created many opportunities for both major and minor companies, startups and firms. A lot of companies already discovered this huge opportunity and got ahead in terms of business. Although more development is required to reach its full potential and many IT companies are working towards it. Nevertheless, it is undeniable that it has opened a path for the corporate industry to explore and advance.
It is to be noted that eCommerce in India has boomed due to the extensive usage of UPI and digital payment methods and it will continue to be the same with further advancement of network and technology. Due to the increasing usage of smartphones and people exploring online shopping platforms, payment gateways in India eCommerce will continue their advancement.
One of the best features of digital and online payment systems is the geographic freedom it gives. Customers can send money from their bank accounts from anywhere to anyone, all they need is seamless internet connectivity. With this system, people from remote areas can also receive money without any hassle. The digital payment method has become a game changer for all the payment gateway in India.
Positive indication for the Industries
The operational cost and processing charges are very low in the digital payment gateways. Therefore, it is a positive note for the entire industry. It can also help with saving time and other resources. People don’t have to wait for cheque clearance and delay in payment transfers.
Companies and businesses look for payment gateways to set up their digital transaction system. If you want to know more about digital payment and payment gateways click here.