We all know how the digitization of almost everything, especially payment methods, has changed a lot in our daily lives. In this article, we'll be learning about the following outcomes such as how has payment innovation evolved, the need for evolution, and the Impact of Digital Payments. Check out the blog to learn more :)
We all got to admit that a lot has changed over the past 1 decade! Back were those days when phones and cars were considered luxurious, now they have become a necessity. People used to queue up the banks to deposit or withdraw money and only used to make transactions through cash. Thanks to Digitization, which has insanely changed our lives in recent times. Have you ever wondered how someone in one location can be seen sending money to someone living very far away? Let us now explore digitisation and make us aware of some technical terms related to it. Yes, We will be talking about the era of Digitization in this article. So, without any further ado, let's get started :)
Digital payments are those types of payments or transactions that happen online or through any other digital platforms that are intangible, meaning without physical touch. This indicates that both the payer and the payee exchange money via electronically. In addition to posing significant security concerns and issues associated with rivalry among the organisations or companies investing in these efforts, technological advances have made things easier, including the transmission of money within and outside country and continent borders.
More people are finding ways to do business online, maybe as a result of growing internet penetration and the search for simpler, more inexpensive alternatives to traditional forms of transaction. According to an Ipsos Research survey done on behalf of PayPal, 87% of respondents said they shop online at least once a month, in the e-commerce industry, travel-related goods and services made up 82% of the total items.
Innovations in Domestic Payments
The Unified Payments Interface, or simply UPI which no one needs to be told what it means has changed the lives of Indians drastically. Almost everyone in India uses UPI as a means to transact with the merchant or with another person. Indeed, billions of transactions happen on a daily basis. Instead of just withholding with the UPI, the RBI has also come up with something called the "Digital Rupee" which is nothing but a Digital Currency.
Benefits of Digital Payments
Ensuring financial equality becomes a major concern in a country like India where disparities can be extreme. To increase access to some financial resources, the government began introducing the Cashless Economy and Digital India. There are numerous advantages to using digital payments, as they are easy and convenient, efficient tracking possibility, safe and secure, and most importantly, economic progress.
Impact of digital payments in India
Digital payments have a big potential in India. Around 1.18 billion mobile connections, 700 million Internet users, and 600 million smartphones were present in the nation as of October 2021. Each quarter, these numbers increase quickly. India led the world in terms of transaction volume in 2020 with around 25.5 billion real-time payment transactions. The GOI introduced the Digital India programme in 2015 in an effort to turn India into a digital economy that is empowered and managed by technology. The digital India initiative focuses on three primary vision areas: governance and services on demand, digital citizen empowerment, and digital infrastructure as the main utility for every citizen.
As a result of the Covid 19 epidemic and lockdown measures, a significant percentage of people choose to stay at home and maintain social isolation, driving record highs in fintech and digital payments across the economy in 2020. Many people—not just in metro areas but also in smaller towns—have started using their smart devices for paying and even getting loans for efficient banking services due to concerns about acquiring new coronavirus infection from visiting bank branches and using currency notes.
By simplifying, securing, and also by lowering the cost of financial transactions with clients, suppliers and the government, digital payments can ease the lives of everyone. Employees gain from digital wage payments, and companies find them more comfortable because of their security and evidence of payment, the governments are able to track the payments seamlessly. Digital payments are progressively becoming a part of daily life. The Internet of Things, which includes connected automobiles, smart homes, wearable technology, and other components, has cleared the door for more creative business options and is growing the payment acceptance network. And this is surely not going to be the end of this era, in fact, it is going to blossom for a long period of time, Let's just wait and see how long it goes.
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24-Mar-2023 , 04:45 PM
24-Mar-2023 , 04:43 PM