From money to digital payments, the story of India is actually exciting. Primarily being a cash-obsessed economy, currently, India is on its manner of changing into “Cashless Economy”. Thanks to the implementation of many policies and inflated use of the net and mobile, Indian Digital Payment System goes through a transformational part. Digital marketing is pushing to become a “Digital India” showed tremendous growth in digital transactions from 2017 heretofore. The “Digital India” initiative of our Prime Minister “Narendra Modi” has acted as a key motivation behind this alteration.
Digital Payment Sector has old Associate in nursing sudden jump in its growth from 2017. Once the govt. proclaimed the demonetization of high currency, digital wallets had shown a growth of total US$2.8 billion i.e. Rs 191 large integer. These multiple factors have altogether formed India’s Payment Landscape in favor of digital payment cashless economy and therefore, Digital India.
Now, most of you will surprise, what we have a tendency to mean by Digital Payment? Thus, Digital Payment refers to electronic transactions or payment revamped net and mobile payments via Smartphone applications cashless economy.
Digital Payment System- Then, currently & Future
With such a big amount of factors forcing, the Digital Payment in India has come back a protracted manner. In recent years, our country welcomes several changes and this has resulted during a large advancement within the payment system. The fintech (Financial Technology) adoption within the previous few years has resulted during a vital boost during this sector. From 2017, India has registered sturdy growth in each the degree and price of digital payments.
With the expansion of e-commerce and digital notecase corporations back in 2017, simply when the announcement of proof, they started providing remunerative offers and cash backs. This created their thanks to the customer’s phone in addition to pockets. From small transactions to victimization them for offline purpose of sale like looking malls, restaurants, gasoline pumps etc; the digital payment system is currently expecting to the touch approx $500 billion by 2020.
After most of the struggle, India is currently one of the most important market opportunities for digital payments. In today’s state of affairs, some half of 1 mile of Indian population prefers cashless transactions. From this % of the population, it’s noted that forty-eighth are victimization the digital payment strategies for over seventy-fifth of their total transactions cashless economy.
Digital Payment Trends
As a region of this the dramatic shift within the payment system, payment services, and products also are created. These services and the product is used with trends reshaping the entire structure of the payment scheme
Cashless Payments- India changing into A Digital World
the growth in digital payment the Digital marketing sector is driven by multiple factors. The ever-growing use of Smartphone, a convenient methodology of payment and handiness of profitable offers are key factors that are proving to be a boon for Digital India.
In order to form these payments a lot of easy and wide access, the govt. is declining the dealing fees- Promising Safer Payments
cashless economy thanks to the continual amendment in digital payment gateways, Government rules are keeping pace with the dynamical atmosphere. They need to take many regulative steps that are helping digital payments.
They are as follows:
1. KYC for transactions
2. Two-factor authentication (2FA)
3. Aadhar creating KYC easier
4. Unified Payments Interface (UPI)
5. Asian nation Bill Payment System (BBPS)
- Promising Safer Payments
Due to the continual amendment in digital payment gateways, Government rules are keeping pace with the dynamical atmosphere. They need to take many regulative steps that are helping digital payments. They’re as follows:
1. KYC for transactions
2. Two-factor authentication (2FA)
3. Aadhar creating KYC easier
4. Unified Payments Interface (UPI)
5. Asian nation Bill Payment System (BBPS)
- Hike in commission suppliers
India has been witnessing a substantial amendment in digital payments in the past 3-4 years. With the growing use of digital payment gateways, cashless economy service suppliers also are growing quickly. Nowadays our digital landscape involves telecommunication, banks, mobile wallets, and far a lot of. Also, we can we are able to} simply predict that technology and payment product will persevere increasing within the close to future too.
- Escalating client expertise
the convenience and easy interface of the digital payment system is enhancing the customer’s expertise. With the loftier expertise victimization digital payment strategies, currently, you will get access to checking account apps combined with rewards, accuracy, and offers.
Digital Payment Landscape in India
the phenomenal decline in money transactions has after gave how to non-cash transactions. This shift from money payment to digital payment, the expansion in total retail payments has inflated by 3x (three times) within the last 5 years. With the expansion in the cashless economy system, the strategies of paying on-line also are increasing. Not simply money payments, however modes of digital payments have additionally undergone a serious amendment.
- Online ticketing corporations
in the section of digital payment transformation, on-line ticketing corporations play a big role in pushing Indian users to grasp and acquire accustomed to on-line transactions for routine services. They embrace transportation bookings, event booking, payments of utility bills and far a lot of.
E-commerce corporations
after on-line Ticketing corporations, another support hand in growing digital awareness are E-commerce corporations. They need utterly modified the structure of digital transactions in India. With the evolution of looking websites or food delivery apps combined with high discounts, the digital payment system has old a forceful amendment.- Offline Payment wallets
with the outburst of Smartphone usage, several mobile notecase corporations tried to enter this sector. Some ruling mobile notecase corporations to incorporate Paytm, Mobikwik, Oxigen notecase, Citrus, Freecharge, and PayUMoney. Nowadays they shift their focus to the growth of the offline world. With their numerous offers, they’re attracting customers to use mobile wallets.
- Unified Payments Interface (UPI)
in 2017, we have a tendency to saw a shift from card payments to wallets, UPI (Unified Payments Interface), and Aadhaar Enabled Payment System. Among these, UPI has come out as a game-changer. UPI may be a massive accomplishment for a run. UPI simplifies and unifies online cash transactions. It permits dealing between 2 bank accounts victimization Associates in nursing app. This attracts shoppers to travel for it.
Future of Digital Payment System in India
India is set to increase its digital payments within the close to future. By observing the speed by that 2019 goes, we are able to foresee our digital transactions to extend to seventieth CAGR (Compound Annual Growth Rate) by 2020.
The development of the latest apps eases the transfer of funds across the country. The following are the longer-term expectations of the digital payment system in India.
- Artificial Intelligence (AI) can end in a lot of convenience and security in the Indian Digital system.
• Increase within the mobile the device can increase the degree of digital transactions.
• 50% of net users can begin to use digital payment strategies.
• Merchants acceptance network can move forward by ten times.
• Technology can create transactions easier and far higher.
End of the Discussion
In the era of rising fintech, it’s believed that India can show the best range of digital transactions within the returning years. Thanks to multiple factors and several other institutional and behavioral trends, we are able to see India’s transition towards a less-cash economy.
People have currently started victimization a lot of digital payment strategies and are relying lesser and lesser on the money. Demonetization let individuals register them on numerous digital payments and therefore, it verified to form India’s payments landscape in favor of digital solutions.
Clearly, Digital Payment sector witnessed massive growth, innovation and regulation over the last two years.
Now, the focus is to keep this momentum on with more support of the public and government. 
