DIGITAL PAYMENTS

Our honourable pm narendra modi once quoted that.."status is now not whether u r awake or
asleep...its abt whether u r online or offline.."

The Digital India programme is a flagship programme of the Government of India with a vision to
transform India into a digitally empowered society and knowledge economy. “Faceless, Paperless,
Cashless” is one of professed role of Digital India.

Cashless payment is a way of payment which is made through digital modes.A digital transaction is a
seamless system involving one or more participants, where transactions are effected without the
need for cash. In digital payments, payer and payee both use digital modes to send and receive
money. It is also called electronic payment.

No hard cash is involved in digital payments. All the transactions in digital payments are completed
online. It is an instant and convenient way to make payments.especially in this covid times..cashless
payments are gaining a lot of importance...many ppl and shops are opting for cashless payments as
no cash exchange has to be done...

This process is automatic.

many apps of online payments have already been introduced in india....now we can also see tthat
many shops have integrated with digital payment apps and transfer money through net banking..upi
id ..etc..

also...cashless payment interfaces are creating a lot of jobs in india...since its new and needs a lot of
development..many companies are recruiting a large no. of employees...

ppl can shift to online payments easily...also.. many apps give concessions and cashbacks for the
payments they do..for eg..gpay has the system of stickers..collecting stickers by paying through the
app will give them cashback in return..so all in all...its gaining importance

. Cash-based transactions are also typically unsafe, expensive, inconvenient, inefficient, and lack
transparency for governments, companies, and citizens
When digital payments—whether on mobile phones, cards, or online —become available to
everyone, everyone in the economy can benefit from the outcomes! These include:

Convenience & accessibility: CUSTOMERS don’t even need to be physically present to pay!
Customers can pay anytime from any part of the world.

Lower risk: Digital transactions are much more secure than traditional transactions

Easily traceable: Both merchants and customers have easy access to payment information. This
avoids ambiguity and confusion while tracking payments.

Cost savings through increased efficiency and speed

Transparency and security by increasing accountability and tracking, reducing corruption and theft as
a result

Financial inclusion by advancing access to a range of financial services, including savings accounts
and insurance products

the cumulative effect of cost savings increased transparency, financial inclusion, and greater
women’s economic participation

Low labour costs

Since online payments are usually automatic, they have lower labour costs than manual payment
methods, such as cheque, money order, cash and EFTPOS.

Convenience for online sales

Online payment methods allow conveniently selling goods and services online
Fast transaction speed

Online transactions quickly provide feedback to you and your customers.

Low risk of theft

After processing delays, online payments generally go straight into your bank account, so they have
a low risk of theft.

like every coin has two sides.....online payments have some issues too..

Disadvantages of online payments

Online payment methods have several disadvantages. Check out these examples:

Service fees

Payment gateways and third-party payment processors charge service fees.

there is a need to make transactions cheaper and enhance interoperability of the payment systems
to make them more flexible for the stakeholders. This is not only an opportunity for non-banking
companies to innovate but to also adopt the already available technologies like Aadhaar Enabled
Payment System (AEPS), which does not involve transaction charges and is consumer-friendly.

Inconvenient for offline sales

Online payment methods are inconvenient for offline sales especially in rural areas.. Since the
growth of digital payments largely depends on the rising rural population getting connected to high-
speed internet and smartphones, it is important for digital startups to focus on secure consumer-
friendly methods in order to build trust and drive adoption..More than 1.7 billion people in the
world are still unable to participate in the formal financial system. . The harsh reality is that the only
way to make or receive payments for many poor people across the world is by using paper money in
the informal sector - which is a barrier to the use of formal financial services...poor people who earn
less wages will not have access to online payments...also ppl like beggars will not ask for online
donations..thats a funny thing to imagine but we hv to consider it

Vulnerability to cybercriminals
Cybercriminals can disable online payment methods or exploit them to steal people’s money or
information.... It is to be noted that during 2016-2018, India was the second most cyberattacks
affected country. Lack of technological awareness and high risks associated with cybersecurity have
kept consumers from adopting digital payment methods wholeheartedly.

Reliance on telecommunication infrastructure

Internet and server problems can disable online payment methods.

Technical problems

Online payment methods can go down due to technical problems.

and much more disadvantages are there..

Even though the number of digital transactions is a positive sign for the economy, we are far from
creating a robust digital payment ecosystem. There are several structural challenges that are
hindering the growth of digital payments in the country. While a growing number of e-commerce
platforms are adopting digital payment methods, consumers still prefer the option of paying by
cash.We need to change this as this is a major hurdle

.....so...i think that digital payments can do more good than harm...and also if we develop it..there
will be no hinderane in digital payments...it would be common for all ...this will also have impact on
our indian economy...so opting out for digital payments will lead to bri8 future of india....I would like
to end it by saying that..once sundar picchai said"India will be a global player in the digital
economy"we hope that it becomes true soon..

thank u