If we think about what is the major campaign of the BJP led government that has been adapted in almost every part of India and almost by every genre of citizens in India, it is only and only the ‘Digital India’ campaign. ‘Digital India’ campaign has introduced by Government of India which aims to create a ‘digitally empowered’ economy that is ‘Faceless, Paperless, and Cashless’. The financial exchange that can take place online between buyers and sellers known as digital payment. Credit Card numbers, electronic cheques or digital cash are some forms of digital financial instrument.
And today, most of us prefer electronic payment over in person, reason, it being easy and on record. Many of the electronic payment systems have been developed to provide secure Internet transactions.
TRENDS THAT ARE DRIVING THE DIGITAL PAYMENTS REVOLUTION:
- The continuation of innovation and increasing performance in digital technology
- Consumer demand and rising expectations of one-touch transactions
- Policy push towards financial inclusion and desire to a margin of cash transactions
- An explosion of essential consumer services ranging from e-commerce to app-based taxi-hailing that necessitates digital transactions, and the scale-up of these services to mass adoption.
- HOW ELECTRONIC PAYMENT CAN TRANSFORM INDIA
In the past few years, India tried to have a cashless economy, especially with the growth of robust mobile payment gateways and proliferation of e-commerce in the country. Some of the private players of digital payment such as GooglePay, PhonePe, Paytm, FreeCharge, MobiKwik and, PayUMoney have emerged and played a key role in growing the overall market. According to the new payment modes, the digital payment has transformed the ecosystem by increasing person to person (P2P) as well as person to merchant (P2M) payments.
- HOW GOVERNMENT IS DRIVING INDIA TOWARDS DIGITAL LEADERSHIP
Digital transactions in India increased to 3,133.58 crores in 2018-19, registering a growth of 51 per cent over the previous year.
- THE MEGATECH INFLUENCING DIGITAL PAYMENTS
The digital payments industry has evolved, and so have the consumers. To keep up with the trend even the banks have changed its methods and became more tech. The most basic changes that we have gone through:
- Banking Cards: Old but the first in the market, for the banking cards (credit or debit) users can apply with their respective bank and provide KYC details. After this step, the card will get activated within a week and 4 digit pin is allotted, which can be used during transactions.
- USSD: This service can be used by dialling *99#, after that the customer can interact with an interactive voice menu through their mobile screen. To use the service the mobile number of the customer should be the same as the one linked to the bank account. Register for USSD, MMID (Mobile Number Identifier) and MPIN in the last step.
- Point of Sale (PoS): POS refers to the place where the customer made payment for goods or services and where sales taxes may become payable. It can be in a physical store where POS terminals and systems are used to process a card or mobile electronic device.
- Bharat Interface for Money (BHIM) App: The BHIM app allows making payments by using the UPI application. Easily user can link the bank account and also possible to link multiple bank accounts. This app can be used by everyone who has a mobile number, valid bank account and debit card.
- Internet Banking: Internet banking is also known as online banking, e-banking or virtual banking or mobile banking, is an electronic payment system that enables customers of a bank to conduct a range of financial transactions through the financial website. Usually, Internet banking made online fund transfers via NEFT, RTGS or IMPS
- WHAT DIGITAL PAYMENT PLAYERS MUST DO
Digital payment is a service that enables all your credit/debit card transactions through your credit card provider. In other words, a digital payment service is a simple software application. Digital Payment gateway services are required to handle all the credit/debit cards online. Similarly, point of service (POS) device does when you pay for your petrol. For example, A customer can place an order from an online store, the internet payment gateway performs several tasks to approve the transaction:
Encryption: The web browser will encrypt the data which is to be sent between it and the webserver of the vendor. Then the payment gateway will send the transaction data to the payment processor which is utilized by the vendor’s acquiring bank.
Authorization request: The digital payment processor will send transaction data to the bank where the card associated. The credit card issuing by the bank will view the authorization request and it may approve or decline the payment.
Filling the order: The payment processor forward to pertaining the seller and the customer to the payment gateway. Once the payment gateway approves the payment, it will communicate it to the website or interface to process the payment.
- SECURING DIGITAL PAYMENTS
The government has tried enough to make the digital payment safe and secure. The digital payment gateways will display the orders with numerous useful tools. The screening process will filter the maximization of frauds. There are a huge number of gateway fraud detection tools which includes:
- Delivery address verification
- AVS checks
- Computer fingerprinting technology
- Velocity pattern analysis
- Identity morphing detection
- Geolocation
- Carefully install an app in your phone
- Update to the latest version of the software
- Activate basic security measures
- Make the most of two-factor authentication
- Swipe only at trusted POS systems.
As the world is being digital and India, taking a step ahead, competing with the world has tried its best to adapt the same by Digital India Campaign. The future is bright and is digital-only.
