Under the Digital India Campaign, the government has been pushing the Cashless India initiative in the last decade. With the revolution geared towards India turning into a progressive cashless society, financial software solutions are springing forth like fresh saplings. New financial software systems are being offered every day, and many digital payment solutions are competing to gain as much use as possible.
With not only government support to initiate such a major change, but also the excitement of financial technology developers to get on with welcoming the future, we are seeing trends that are reshaping India’s digital payment landscape. The revolution is predicted to bring India into contributing at least 10% in the digital transaction on a global scale.
We are looking at 5 trends in India’s digital payment landscape that are driving the nation forward into much quicker, more convenient payment systems.
Paytm is arguably India’s most popular mobile wallet right now. With just several clicks or a scan of a QR code, people nowadays are able to quickly and securely make purchases without the hassles that used to come with cash payment. These virtual wallets that are easy to operate just from a smartphone make shopping so much more convenient due to record tracking of payment history. With transactions being digitalized, you can be sure the amount of money you pay is always just the right amount.
QR Code-Based Payment
The QR code system installed for mobile wallets is what makes it easy to quickly and securely make payments at retail stores nowadays. Payment through a QR code is simple and secure. All you have to do is scan the QR code present at the store with the camera on your smartphone, enter the amount of purchase, and submit. We’re seeing more of this payment feature being made available at many stores small and big.
Developed by the NCPI itself as a means to facilitate interbank transactions, Unified Payment Interface (UPI) is an online payment system that is gaining momentum each day. The system allows for instant, real-time funds transfer between banks by using virtual IDs registered on a bank. With the virtual IDs that work like unique email addresses, transactions no longer need complicated A/C numbers or IFSC codes. Relevant banking information is registered and stored on the smartphone and ready to go at any time.
Aadhaar-Enabled Payment Systems (AEPS)
AEPS allow for basic banking transactions to be carried at a tad higher level of security. Any transactions such as funds transfer, cash withdrawal/deposit, or balance inquiry can be accessed without giving out your banking information. All that is needed is your pre-registered Aadhaar number and you just activate the transaction using a fingerprint/iris scan.
With the digitalization of financial activities taking place all over India, banks are now required to jump on the same wagon by providing a more seamless internet banking experience. There is a lot for banks to innovate and automate on right now and we’re seeing this trend to completely change India’s payment landscape in the years to come.