Are digital payments making life better?

Origin of digital payments

Cash may no longer be king. Adoption of digital payments is growing rapidly. From vegetable sellers to small business owners, everyone is adopting digital payment systems to get him out of the cash crisis. New technologies, players and consumer expectations are changing the payments market more than ever. Opportunities in new digital payments ecosystems come with risks. From cybersecurity and his privacy to the impact of legacy technology and new competitors, the road ahead is never clear for companies looking to compete in the future his payments market. Following the government’s initiative to transform the digital economy and many of his into private enterprises, the payments banking license issued by RBI is witnessing a transformation. “Faceless, Paperless, Cashless” is a famous role of Digital India. The focus is on different methods of digital payments that consider the challenges and provide solutions according to existing scenarios.

Challenges faced

Today, over 60% of Indians use mobile and online banking modes for financial transactions. Also, many people want to use digital payments in the post-corona era. But four-fifths of his payments are still made in cash, partly because of lack of internet access and penetration. This high reliance on cash is also due to the lack of adequate infrastructure. Digital payment options now rely heavily on smartphones with built-in data connectivity, Bluetooth, and NFC. There are 800 million mobile phone users in India, of which only 200 million are smartphone users. Therefore, about 85% of Indians do not have access to the necessary infrastructure for their mobile wallets to function properly. Even the hardware and software associated with it is bulky and expensive. Therefore, we need a universal and interoperable method for digital payments. Government and private digital payment companies consistently push for a cashless economy. However, the pitfall is the lack of established protocols for implementing digital payment methods. Technology abounds, but its penetration is slow. Similarly, there are fintech start-ups that can ease the cost burden for users, but still lack sufficient support for their expansion. Some consumers are still unconvinced that mobile wallets are a secure means of payment. To know more about digital payments and how phygitall is helping the stream, click here to register for free for the upcoming DIGITAL PAYMENTS FOR ONLINE BUSINESS SUMMIT.

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