As a developing country, India is yet to keep up with the evolution and advancement of technologies. However, India has begun to take the front seat in adopting digital payment methods. There have been several factors propelling the rapid adoption of technology and contactless payment methods.
The extensive expansion of the E-commerce industry, policy framework, and technology penetration became the reason for triggering momentum for digitalization in the country. The giant companies entered the telecom and fin-tech sectors luring customers with attractive cash backs, discounts, offers, and coupons, thus making the internet accessible to all. Online users in India make up the fifth-largest customer base in the world, with most using mobile devices.
Digital payment and UPI became widely accessible to people across the nation. The scarcity of cash due to demonetization, the need for contactless payments due to lockdown, etc made citizens realize the significance of digital payments. The widespread use of the UPI Bhim app and other payment options is a piece of good news for the growth of the economy. Here are some reasons behind the rapidly increasing popularity of digital payments.
- Easy to use- Mobile applications offering digital payments make it very convenient to make transactions. It is hassle-free and time-saving to make payments online as payments can be made directly without any involvement of cash. In a few taps, you can transfer cash from your phone to a friend in another country. Such convenience could not even be imagined just a decade ago.
- More transparency- Digital payments make the transaction more transparent as the entire transaction history is recorded digitally making it hard to alter. Illicit activities, such as fraud, can be minimized. Safe & secured transactions are very beneficial for the economy of the country, hence it is also encouraged by the government.
- High growth scope- There is huge growth potential in the digital transaction sector resulting in high competition and major players entering the battlefield. Both private and public companies are competing for the public’s attention.
- Rewards offers and prizes- Attractive rewards, discounts, and cash backs are offered by UPI mobile application and other digital payment apps. These are effective ways to encourage customers to use the app regularly.
- Promote E-commerce- It has played a major role in boosting the e-commerce industry and has made a significant impact on the economy. The use of online shopping apps continues to increase with the rise of digital payment.
- Geographical freedom- Digital payments have made it possible to make and receive payments from anywhere in the world at any time. We have been able to overcome geographical and time-related limitations of transactions. So, it can be termed as a game-changer in the field of money transactions. The benefit is availed by any UPI Indian bank