In previous years, there has been a huge change in the payment methods. The onset of ‘going cashless’ has increased the trend of online payments. Gone are the days when people of India had to carry cash in their pockets.
Life Before the Internet
Life before the internet included online payments in the form of debit and credit cards. In 1980, RBI introduced credit cards. People found it easy paying through these cards. Soon, the concept was popular among people.
Impact of Online Payments on the Indian Economy
The start of online payments has given considerable scope to various banks. Going cashless will save many resources also such as time, labor, paper, etc. The online payment system has acted as a catalyst in the growth of the Indian economy.
Pros of Online Payments
- Easy to use: The online payment system method is simple to use. People with knowledge of computers find it easy to complete the transaction steps.
- Extremely Fast: As compared to payments in cash, online transactions are quick and convenient. Every transaction is a simple tap or a click away.
- Budget-Friendly: It helps you watch your expenses and be within your budget. Online transactions give all the information about how much you’ve spent and how much balance is left in your account. It is a good way to manage your finances.
- One Tap Payment: Online payments had made transactions easy. Now there’s no need to carry cash along with you. Payments are just a single tap away.
Cons of Online Payments
- Fraudulent Activities: Online payments are vulnerable to fraudulent activities. Many measures are taken to keep the information safe. Still, it is prone to hacking and other unethical activities.
- Technical Problems: Technical problems such as slow internet, server problem, poorly built website, etc may interrupt the transaction. For safety purposes, many banks block the transaction. This problem can be rectified by contacting your concerned bank.
- Threat to sensitive information: Banks giving online payment facilities will have to install the software. It will protect their information from manipulation.
Future of Online Payment System
There has been a significant increase in digital payments. As per reports, the Indian digital payment industry is expected to witness a great boom. The demonetization and COVID-19 pandemic has influenced the growth of online transactions.
There is still a lot of promise in the Indian finance sector, with financial technologies or Fintech expanding at an inconceivable rate. As banks and consumers discover the convenience of digital payments, the number of digital transactions will increase. It is a potential market in India that should be tapped strategically.