With the aim to make India digitally sound and to keep the motive of Digital India alive, the government wishes to achieve a digitally enriched economy. Making the economy, ‘paperless, faceless and cashless’, the government promoted digital payments that have several modes and types. Some of the modes of digital payment methods are already popular among the people like the use of debit/credit cards, mobile wallets, internet banking, UPI etc. with the ease of access from anywhere, digital methods of payments are quick and convenient. It makes a transaction in no time, therefore, speeding the cycle.
Digital payments gained acceptance and became popular post demonetization as people became cashless within a night. New currency rotation took time and people were bound to use digital payment methods.
Digital payments refer to a cashless electronic transaction on the purchase of goods.
Digital Payment Methods
Some of the most popular digital methods of payment are mentioned below.
Bank cards: Every account holder of any bank has these cards facility available with them. Card payment is one of the most commonly used payment methods. One just needs to swipe the card at the point of sales machine or fill in the card details in order to make the transaction successful. The usual cards available are Master Visa and Rupay cards. In order to use this card, you need to set up a pin that will help you to make a safe transaction.
Unstructured supplementary data service (USSD) : Another digital payment method, *99#, is all-inclusive and caters to all the sections of the society is USSD. It carries out the mobile transaction without downloading any app. You just need to make a call at *99# and avail all banking services, like fund transfers, looking at a bank statement and ask balance-related queries. It has multiple language options to make it user-friendly approachable to non-English speakers. USSD works in collaboration with National Payments Corporation of India (NPCI). Follow the steps mentioned below to avail of the USSD services.
- Dial *99# and interact using the interactive voice menu through their mobile screen.
- Ensure that to use this service, your mobile number should the same as the one linked to your bank account.
- Register yourself for USSD MMID (Mobile number identifier) and MPIN.
- The service is ready for use.
Aadhar enabled payment services (AEPS): Avail all the banking services using your aadhar number. If your aadhar number is linked with your bank account, get your aadhar number verified and make any transactions or avail any bank related services be it funds transfer, cash withdrawal, viewing bank statement, etc. It’s a one-step digital payment process for any kind of banking services. No signatures or visits to a bank required if you have your aadhar linked.
Unified payment interface UPI: You can transfer or receive money using a UPI-based app. You can link multiple bank accounts and initiate and receive fund transfers anywhere anytime. It doesn’t use your bank account number or IFSC code for transactions instead uses a virtual payment address (VPA). All you need is a valid bank account and registered mobile number and a UPI app. There are no extra charges applicable. A user can also know about account related information like balance inquiry. To use this digital payment method, download the app, register by entering your bank account details, and create a VPA and get an MPIN.
Mobile wallets: A mobile wallet is your virtual wallet where you can add money or even use it merely to pay through your card. It registers your card details to make successful payments. You can even transfer money to another person’s wallet. Some of the trending mobile wallets are Paytm, Mobikwik, Phone pe, etc. With the advancement in technology and the rise in digitization, some of the banks have also started offering e-wallet services. Download the app, log in, and register. Put money and use the services.
Prepaid cards: A prepaid card as the name suggests helps you load money and then spend it wherever you need. Unlike a debit card, it is not linked to your bank account, however, you can add money to it using your debit card as and when you need it.
Point of Sale: This payment method refers to the machines that you use at a shop to swipe your card, it reads your card details, and you enter the card pin to make the payment successful. The payment is received in the shop owner’s linked account.
Internet banking: Using the internet to avail banking services is referred to as internet banking. When you access your bank account and make all the transactions online is called internet banking. It is an easy way to avoid long queues of a bank and get the work done within no time. You can make NEFT, IMPS, and RTGS fund transfers, renew or open a new fixed deposit. You can log in to your account on the bank website with your internet banking ID and password. You can use this banking service in odd or non-working hours as well.
Mobile banking: Banking using your smartphones refers to mobile banking. Different banks have their individual application that can be used by the customers having their respective accounts. It’s a more handy way of the transaction and easy banking.
Bharat interface for money (BHIM) app
The BHIM app works along with UPI and uses VPA for transactions. Link your bank account with the BHIM interface and make transactions easy. You just need to have a mobile number that is linked to your bank account, a bank account, and the BHIM app to avail of the banking services. You can also link multiple bank accounts. Many banks have alliances with BHIM and NPI to use this interface for payments. To use this payment service, download the BHIM app, choose the language you find yourself comfortable in, register for services with the mobile number linked to your account, and set up the UPI pin to avail services and carry out transactions.
Why go Digital? Here are Some Benefits!
Time-saving: Digital payment methods are no more time taking as long as standing in a queue for several banking services. Everything happens within few clicks moreover no physical bank visit for small things as small as a balance inquiry.
Fast and easy: The digital payments have made life easy we are free of filling those lengthy informative forms. Also, transactions can be done anytime anywhere round the clock.
Minimal transaction charges: Less transaction charges or almost negligible charges applicable to your transaction as there is reduced manpower and no other service charges.
Rewards and cashbacks: There are several cashback and discounts offered as perks to make a loyal customer network. This helps build a network and encourage people to go digital.
Transactions record: Nobody wants to get the passbook updated and keep a record, however, when it happens automatically. The digital payment methods keep a record of all your transactions that can be checked by you timely.
Black money under control: With such a safe transaction of the money from the bank accounts, it keeps the black money under control. Going cashless means a stop on unrecorded cash and cash flow in the market. Thus, keeping money safe and under control.
Help aid other services: Making digital payments have many other benefits for free, like paying bills of almost every service to be its gas bills, phone bills, TV recharges etc. everything happens online or through any of the applications.
With the wide variety of digital payment methods, life has really become easy. Not having cash in your wallet won’t make you insecure or helpless, it is a world of mobile wallets that has made life easy. However, there is a long way to go as some sections of the society have still not reached this far.