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Types Of Digital Payment Systems In India

The Digital Payment System in India is witnessing tremendous growth. As society becomes more digital and payments are started to move online, digital payments are becoming popular in India as well. While the number of people using payment apps and cashless transactions is increasing every day, here are some facts about the future of digital payments in India:

To strengthen the fast-growing digital payments system in India, a number of innovative technologies in the payments sector over the years have led people to change their preferences from cash to digital means. The digitization payment process has proven a secure, easy, and fast way of making payments. The digital payment system is a revolution in India and all banks and financial service providers are entering the field, which makes it essential to have specific and effective guidelines to regulate it.

Digital payment system in India is a new way of digital payment which is being practised in India recently. It works on electronic payment which means that money transference takes place through the digital platform and physically no exchange happens.

Merchant presents a host of payment options for Indian consumers. From cards such as Debit and Credit Cards, Net Banking, Wallets, Mobile Based Payments to options such as UPI, IMPS, and Cash on Delivery. The Government of India has introduced a number of digital payment systems in order to encourage the transition from cash payments to electronic payments. Payment and Recharge Cards are the primary systems of cashless payments in India. These cards can be credit, debit, or prepaid cards. These cards can be linked to the account of the card user with a bank, which enables providing an online facility for the cardholder to transfer money from his/her bank account to other accounts. The common types of Payment and Recharge Cards used in India include Banking Cards and Prepaid Payment Instruments (PPIs). The main objective of this article is to discuss the various kinds of Payment and Recharge Cards available in India.

Indian banking structure is rigidly constructed for carrying out any financial transaction. Only credit/debit cards and net banking services can be used to transfer money from one account to another. But still, many people in India depend on cash for making any payments, especially in rural areas and villages where there is no facility for banks and ATM machines. Keeping this in mind the Indian Government came up with the USSD system which allows users to carry on their transactions related to banking using their mobile phone

Aadhaar Enabled Payment System (AEPS) is a payment system where the bank account number is linked with the Aadhaar card number, it facilitates the person-to-person transfer of funds using mobile or smart devices connected to the Aadhaar database. Do you know how to pay a person directly from your bank account without having to share your personal information, or have to worry about cash handling? The solution is a Unified Payment Interface (UPI)! UPI is a revolutionary real-time payment system that has the potential to transform the way we pay for things digitally.

A mobile wallet is an electronic device, usually running on an app, which can store non-cash payment instruments and methods. The e-wallet allows customers to pay using mobiles in a secure way. Mobile Wallets can be accessed from anywhere, and anytime, which makes them convenient to use. The government of India has adopted the digital payment system in India. The digital payment system works on PoS contactless (Point of Sale) devices attached at the checkout counter where you swipe or tap your debit or credit card to make a payment. 

Mobile banking is a mechanism, which allows its users to transfer money and pay bills through mobile devices, typically through the bank’s mobile application.

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