Digital Payment System for Banking
Digital payment system is a mode of promoting cashless transaction and converting our country into a less-cash society. It refers to a cashless electronic transaction for the purchase of goods. The government of India have been encouraging ‘digitally empowered’ economy that is ‘Faceless, Paperless, and Cashless’. Digital payment is a good alternative to traditional methods of payment and speedup transaction cycles.
In earlier times everyone wishes to achieve an easy, convenient, fast, and secure payment method and digitization of payments was a big step towards this. In the span of four to five years digital payment methods gained enormous developments and even many more changes are to be there in the coming future. With the wide range of digital payment methods, it’s been convenient for everyone to do transaction anytime from anywhere. If you don’t have cash in your wallet it won’t make you insecure or helpless, because digital payment had made life easier. Since, as few sections of the society have still not reached this far there is a long way to go.
In recent times, there are a lot of transaction methods introduced. Here is the list of 10 most popular digital methods of payment.
- Banking cards
- Aadhaar Enabled Payment System (AEPS)
- Mobile Wallets
- Bank pre-paid cards
- Point of Sale (PoS)
- Internet Banking
- Mobile Banking
- Bharat Interface for Money (BHIM) app
Let’s know a bit about these digital payment methods.
- Banking Cards
Card payment is one of the mostly and commonly used payment methods. Every bank account holder has this card facility available with them. They just need to swipe the card at sales machine or fill in the card details for a successful transaction. Master Visa and Rupay cards are the usual available cards. For a safe and secure transaction you need to set up a security pin.
- Unstructured supplementary data service (USSD) :
USSD carries out the mobile transaction without downloading any app. *99#, provides service to all the sections of the society is USSD. The user just need to make a call at *99# and avail all banking services, like fund transfers, bank statement and even ask balance-related queries. It also has enabled multiple language options to make it user-friendly. USSD works in collaboration with National Payments Corporation of India (NPCI).
- Aadhar enabled payment services (AEPS):
One can avail all the banking services using your Aadhar number. You can make any transactions or avail any bank related services like funds transfer, cash withdrawal, viewing bank statement, etc. if your Aadhar number is linked with your bank account. It’s a one-step digital payment process for any kind of banking services.
- Unified payment interface UPI:
One can do his transactions using a UPI-based app. You may link multiple bank accounts and initiate and receive fund transfers anywhere anytime. It only uses a virtual payment address (VPA). All you need is a valid bank account and registered mobile number and a UPI app. It doesn’t charge you any cost.
- Mobile wallets:
A mobile wallet is a virtual wallet where we can add money and use it to pay through card. For a successful payment it registers card details. Through this you can even transfer money to another person’s wallet. Few commonly used mobile wallets are Paytm, Google Pay, Phone pe, etc. Many banks have also started offering e-wallet services as a result of the advancement in technology.
- Bank Prepaid cards:
As the name suggests, this helps you load money and then spend it wherever you wish to. It is not linked to your bank account, and you can add money to it using your debit card as and when you need it.
- Point of Sale:
This payment method refers to the machines that are used at a shop to swipe cards. It reads the card details, and the user needs to enter the card pin to make the payment successful. Then the payment is received in the shop owner’s linked account.
- Internet banking:
Internet banking is one of the mostly and commonly used digital payment methods. Using internet to avail banking services is known as internet banking. Accessing your bank account and making all the transactions online is called internet banking. It helps you to avoid long queues of a bank and get the work done is few minutes. You can make NEFT, IMPS, and RTGS fund transfers, renew or open a new fixed deposit.
- Mobile banking:
Using bank facilities through Smartphone’s is referred to mobile banking. Different banks have their individual application that can be used by the customers having their respective accounts. It’s a more easy way of banking and transaction.
- Bharat interface for money (BHIM) app
The BHIM app works along with UPI and uses VPA for transactions. You just need to link your bank account with the BHIM interface and make your transactions. You just need to have a mobile number that is linked to your bank account, a bank account, and the BHIM app to avail of the banking services. Recently, many banks have alliance with BHIM and NPI to use this interface.
There are many benefits for using digital payment services. Some Benefits of it are listed below.
- Fast and easy
- Minimal transaction charges
- Rewards and cashbacks
- Transactions record
- Black money under control
- Help aid other services