How digital payments are making life easier

When products or services are purchased through various electronic channels, digital payment takes place. Cash or checks are not accepted as forms of payment in this system. These types of payments are now accepted in almost every shop and shopping website.

Digital payment options are frequently simple, and more practical, and provide clients the freedom to make payments whenever and wherever they choose. These provide quicker transaction cycles and offer a viable substitute for conventional payment systems. After demonetization, individuals gradually began to accept digital payments, and even small-time retailers and store owners began to do the same.

The Indian government has been implementing a number of initiatives to support and promote digital payments there. The government wants to establish a “digitally empowered” economy that is “Faceless, Paperless, Cashless” as part of the “Digital India” program. Digital payments come in many forms and configurations. Debit/credit cards, online banking, mobile wallets, digital payment apps, the Unified Payments Interface (UPI) service, Unstructured Supplementary Service Data (USSD), bank prepaid cards, mobile banking, and a few of the following options.

Advantages of digital payments

1. Faster, simpler, more convenient

One of the benefits of cashless transactions is that there is no need to fill out a lengthy form, which speeds up the payment process. There is no need to carry cards in the wallet or wait in line to use an ATM to get cash. Additionally, with the transition to digital, consumers will have access to banking services around-the-clock, 365 days a year, including holidays.

2. Bill payment in one place

Many digital wallets and payment applications have evolved into a simple platform for paying utility bills. All of these utility bills, including those for energy, internet, and mobile phones, may be easily paid using a single app. There is not even the slightest delay. You enjoy a pleasant life when you accept digital payment methods.

3. Tax benefits

For a number of goods and services, the government has waived the service tax. On card transactions, the service tax is up to Rs. 2000. Discounts on gasoline, rail tickets, and certain insurance are also available. These actions have been made by the government in an effort to persuade consumers to use digital payment methods. 

4. Additional security measures

The government promotes digital payment methods because it aims to improve the transparency of individual financial activities. Although Indians have always hung onto their cash, we are progressively coming to appreciate the safety and security that come with digital payments. Carrying cash increases your risk of having it taken. Numerous digital payment systems use fingertip sensors or unique codes for protection. Therefore, even if someone takes your smartphone, they won’t be able to use your e-wallet system to access your bank account.

5. Keeps track of your payments

With cash purchases, a person would need to manually track each purchase they make. But since it’s impractical to keep track of every little payment you make; this is incredibly challenging to maintain over the long run. All of your transactions are automatically logged by digital payment systems. You are well aware of when and how much you sent to whom.

Conclusion

Cash transactions still have a significant impact on the economy even if online payment is the way of the future. This makes financial transactions simpler for the elderly population because some may not be tech-savvy. Cash transactions are preferred by small business owners because they guarantee their independence and autonomy. People can only hold banknotes and coins on their person without the assistance of a third party. It also reduces transaction failure. To some people cash on deliveries are convenient.

However, many businesses are working to make apps and processes for both customers and merchants smoother. Many financial institutions and payment service providers are using secure payment methods to make online transactions safe for both users and businesses. Some shopping websites offer both types of transactions, be it cash on delivery or online payment.