Keeping Cash is Old School, Digital Payments are Here to Rule!
Paying with cash has always had its hassles. Problems like insufficient availability of cash after having made a purchase, unavailability of ATM machines in the vicinity of the store, the impossibility of making international transactions, and something as rudimentary as fear of getting robbed has always created inconveniences for people. The impact of COVID and the contactless approach to life showed the world the necessity of digital payments and made it the new norm.
COVID-19 pandemic ensured that everything happens through the Internet. Owing to the contactless approach, online marketing gained popularity like never before and along with it, digital payments rose into fame. Today, every shopkeeper has a QR code linked to his bank account for the convenience of the customers as they are looking to be cashless. Although people largely started using digital payments due to the pandemic in the last two years, statistics show that there is no turning back from digital payments now. According to a study by Jupiter Research, the worth of global online payment transactions will increase from 4.9 trillion dollars in 2021 to 7.5 trillion dollars by 2026, an astounding rate of growth of 55% over five years.
Advantages of Digital Payments
As digital payments have been massively adopted by people at large, it is important to note that digital payments have plenty of advantages. Among its many advantages, not only is it absolutely contactless but it also is extremely secure. Here, we have listed some more advantages of digital payments to make the scenario clearer:
- Contactless
Digital payments rose to fame in the COVID-19 era when contactless transactions were the new normal. Since the COVID-19 crisis still looms over our heads, avoiding any form of physical contact with unknown people is of utmost importance. This is more important for the elders as they are at a higher risk. Digital payments ensure that even the most minimal touches will not be necessary. - Convenience
Standing in long ATM lines to withdraw cash is not fun for anyone. Despite all that standing, sometimes ATMs may not have cash available or have other related issues causing further annoyance. Digital payments offer the utmost convenience in this regard. It allows easy transactions without the worry of the availability of cash or having sufficient cash in the wallet. - Transaction is Seamless
As digital payments have gained more and more popularity, it has become more integrated and more seamless. Everyone, including malls, showrooms, and even small shops have now started accepting digital payments and the process of the payments has become easier than ever. Customers are only required to scan the QR code using their phone’s camera and the rest will be done by digital wallets or mobile banking apps. The bank will send a text message to inform them about the amount spent. That’s how seamless the whole process is.
- Extremely Secure
Carrying cash can be risky at times and the fear of being robbed is always present. Senior citizens have always been the victim of thefts and robberies, giving away their pensions. A major advantage happens to be higher security in digital payments when compared to regular cash transactions. This is because the process requires strict verification and authentication. Along with the usual authentication, digital payment platforms like the banks provide further security in the case of digital transactions through cross-verification and OTPs that help to prevent fraudulent transactions. - Various Options
From the usual credit and debit cards to digital wallets such as Paytm, PhonePe, and Google Pay, there are a plethora of options to make digital payments from. It provides the option to make financial transactions without actually carrying liquid cash, thus promoting a cashless economy. - Offers
In order to promote digital payments, online marketplaces, banks, and such other financial institutions give various discounts and offer to their customers on a daily basis. These offers may prove beneficial to people as they receive regular rewards such as coupons, discount vouchers, and even cashbacks. On top of that, some banks provide special offers and rewards to their senior customers also. - Convenience in Traveling
There was a time when we all heard our parents withdrawing a significant amount of money from the bank before any outstation vacation. In today’s world, those days are gone. Every retailer has realized the significance of going cashless and now has begun accepting payments in digital form. Thus, people can easily travel between cities without the hassle of carrying too much cash on them. - Saves Time
A major benefit of being cashless is that it saves a lot of time. The various options of payments available in digital payments ensure the exact amount of money being sent to the retailer in the least amount of time. Since digital payments do not charge any transactional fees, it does not cost anything. In fact, it can save money in the form of cashback. - Various Methods of Digital Payments
Since digital payments ensure so many advantages, it is well received and well-integrated into the economic system. The various methods of digital payments are - - Cards
Banking cards such as debit, credit cards, or prepaid cards have been used as a substitute to cash payments for a long time. They are preferred because they are extremely convenient as they are safe, secure, and portable, and they can be used to make a large number of transactions.
- UPI or Unified Payments Interface
Unified Payment Interface is a method of payment where bank accounts are all joined in one, single application, which allows a seamless money transfer between individuals. It can be used for initiating a financial transfer from wherever you are, right at your fingertips. Its advantage is that it is extremely simple to use as it allows you to pay directly from the bank without having to add any card details.
- Mobile Wallets
In simple terms, it is a wallet for digital cash. Customers often link the bank accounts they hold to their wallets in order to achieve safe digital transactions. Wallets can also be used for adding money and use that balance to do transactions, just like an actual wallet. - Internet Banking
E-banking or online banking allows customers of a particular bank to carry out all bank-related financial activities and make transactions via the bank’s website. It removes the need to be physically present in the bank, thus saving a lot of time and effort.
- Mobile Banking
Mobile banking refers to doing banking activities such as checking the balance in the account and conducting transactions through phones and through the bank’s mobile application. Today, almost all banks have their own applications that can be operated through phones, tablets, and even computers. This also eliminates the need to physically be present in the bank.
Thus, digital payments are indeed the future of E-commerce. The pandemic has started this trend and has shown how impactful digital payments can be. They provide all the advantages to be the new norm of payments.
