Nowadays everything is about going digital in the Indian market, India has started the digital revolution in their country. It is one of the great ways to who used the technology in various fields, the digital revolution is one of the biggest developments you can do to your financial sector.
Digital Payment can be good for the regulatory environment as well as used in the e-commerce section of the country. There are various ways which we can use for digital payment, we can use credit and debit cards, prepaid and electronic cards, online banking, mobile applications for banking purpose and various mobile wallet applications in India and UPI transfer.
Unified Payment Interface or UPI can be used for money transferring bank to bank instantly using text message and email address. There are many UPI apps in India to perform digital transactions. Before the digital payment revolution in the year 2012-13, the banking transaction via mobile devices was around ₹60 billion. Now the banking transaction via mobile devices increased to ₹4,000 billion in the year 2015-16.
Limitations of Digital Payment in Rural Areas:
Even India has started using digital payments on rural areas also, there are several limitations in this process. Even most of the users are using cards and mobile devices for payment, but the info of the cases exchanging cash is for easier than swiping a card and entering the pin. Even in case of mobile wallet payments, it is hard to remember the password and 2FA to complete the payment in the rural areas. There is always a security risk while using digital payment in rural areas with less knowledge of technology.
Digital Payment for Sellers in India:
In most of the cases, sellers in India prefer cash transactions instead of digital payments for their business. Although the main idea about integrating the digital payment in the business is for increasing the income and the sales of the business. There are various discounts and incentives provided by the payment methods to the buyers which may be encouraging digital payment.