According to a recent study, India will hit 30 billion in digital payments in the year 2019. This is a gigantic number to be surpassed without the intention to boost digital payments. That’s not even possible. We all know that our country India is filled with mixed sentiments and outlook. However, the process of acceptance of digital payments has been relatively fast. In the same way, the financial sector is replicating the effort to compliment digital efforts. The digital payments wave hit the ground when many did not even have bank accounts available.
The point is, are people still ready for digital payments? The times, however, are gradually changing.
In fact, there looks to be a great change in the way people look at digital money and use it. This transformation is quite evident and spreading. We all notice the difference in the way money is used both physically and virtually. Both rural and urban sections are under purview.
In the super-fast world of exchange of goods and services, it was relevant to devise a mechanism for faster financial management.
So, how has this change been turned to reality?
The below two pointers underline the importance of digital transactions in today’s world.
- Firstly, a strong social change was important, next in line was the way financial conduct was previously viewed. A foundation level upheaval was at the core of all the changes. It is only after demonetization that the government hugely encouraged digital payments. Cashless transactions are already on a roll to save the trouble of losing paper money. According to a recent study, digital payments have spiked to 7% of GDP in just about 3 years.
- The second most important point to be noted is the number of technologies and tools (AI, IoT, and Robotics) used to come up with a powerful and user preferred system. It is really difficult to conceive a simple yet powerful solution for a layman to understand and interestingly use it too. The system must not only support tech freaks but also anyone from the rural areas.
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The share of mobile phones, digital wallets, and smart cards have already taken over a substantial portion in the equal halves of the country. Cash perhaps has been kept on the backburner for the time being.
This was popularly used by both individuals and businesses.
We believe that every single attempt to digitize the financial framework engages cash and non-cash transactions both.