Digital payments rise in many emerging economies

Back in 2010, when NPCI launched IMPS to offer instant interbank electronic fund transfer service through mobile phones followed by the launch of UPI in 2016, leading to one of the most popular tools in the country for carrying out digital transactions, little did we know that this concept of going digital and that too something involving our hard-earned money will boom at such a rapid pace.

E-payments or electronic payments are a way of making transactions or paying bills online without the need of credit or debit card details. Such a payment method helps a customer to transfer funds as an alternative to cash payments. These payment modes enable purchases with a simple swipe or tap, resulting in processing and completion of transactions within a couple of minutes. Also, the payments so made reflect in the digital wallets or bank statements followed by instant SMS alerts after every transaction. Not only this, in case the funds are wrongly debited such transactions get reversed within 24-48 hours, or at times when incorrect password is entered, instant message or a pop-up is reflected stating to enter the correct password.

Much thanks to COVID and the post-COVID digital revolution. Today, UPI and other payment applications such as BHIM, BharatPe, Paytm, PhonePe, Google Pay, Amazon Pay, JIO money, Freecharge, YONO SBI, Airtel Money, CRED and the list goes on and on, have gone a long way in making digital payments a habit, and in firmly placing India on the track towards a cashless – economy. Being too quick and faster than physical cheques or other bank instruments, this mode of payment saves time, is efficient and, most importantly, helps in building a cashless economy, especially in urban areas of the country by reducing the reliance on cash.

As a part of the ‘Digital India’ initiative, the government has an aim to create a digitally empowered economy that is “Faceless, Paperless and Cashless”. The National Database and Registration Authority (NDRA) introduced a new digital payment system which will serve as an alternative to Automated Teller Machines (ATM’s), thereby resulting in payment of utility bills and identity documents. Recently, Reliance retail became the first organised retail chain in India that has started to begin accepting digital rupee for sales.

Customers can simply scan the QR code on the digital Rupee app and enter the passcode to authorise the e?-R followed by instant notification of the payment. Such instances clearly reflect that India is on the path of steady development and that no one can stop it from any situation or circumstances.

Many digital payments platforms and private entities are helping and training vendors to shift from traditional cash transactions to the new digitized online payments system, resulting in the increased demand of smartphones.

However, many private entities are providing an efficient and effective way to ensure alternative payment methods to its customers. Digital payment adoption is on the rise in many emerging economies. Such technological development will help Indians to transact more digitally. This mode of digital transactions is very advantageous for start-ups. Payments made electronically prove to provide high profit potential to entrepreneurs around the world. It can even help them reduce the high cost of tax compliance. Transactions are transforming over a period from cash payments to digital payments catering to the needs of people adapting to their changing environment.

There is no denying the fact that constant innovations and adaptations to more and more digital payments will help India, to withhold its title of World Leader in the field of digital payments proving it to be beneficial for India’s growth.

(The author is a teacher at a reputed school in Delhi)