Digital Payments are payments that are conducted over the internet and mobile channels, technology has made it possible for anyone with a smart device to carry out transactions easily and securely, both in person and online.
Any payment that is sent online or through mobile computing and internet-enabled devices can be called such a digital payment. Both companies and consumers are embracing digital payments as a fast, reliable and contactless way to exchange money, but there are still innovations and improvements to be made.
For digital payments to take place, the sender of the payment must have a bank account, an online banking method, a device from which he or she can make the payment, and a medium of transmission meaning that either he or she should have signed up to a provider or an intermediary such as a bank or a service provider.
Digital payment methods are positioned to be a major influence on the economic prosperity of many third-world and first-world countries, impacting everything from remittances to transferring funds via cryptocurrency backed by blockchain technology.
Modes of Digital Payments
Digital payments are an evolutionary step towards the “business at the speed of thought” model that pioneers such as Bill Gates have always predicted would be the next step in our move from physical to digital and hence, despite the challenges and doubts, one must indeed take steps to move towards it.
The transfer of money or digital currency from one account to another can be done in a number of methods. Here we list ten most popular methods of digital transactions.
Banking Cards are preferred because of multiple reasons, including, but not limited to, convenience, portability, safety, and security. This is the only mode of digital payment that is popular in online transactions and physical transactions alike. Nowadays, many apps are being launched with the sole purpose of managing card transactions.
Unified Payments Interface (UPI)
UPI is a payment system that culminates numerous bank accounts into a single application, allowing the transfer of money easily between any two parties. UPI is far more well-defined and standardized across banks. You can use Unified Payments Interface (UPI) to initiate a bank transfer from anywhere in just a few clicks.
UPI allows you to pay directly from your bank account, without the need to type in the card or bank details. This method has become one of the most popular digital payment modes.
A mobile wallet is a virtual wallet that stores payment card information on a mobile device. Mobile wallets are a convenient way for a user to make in-store payments and can be used at merchants listed with the mobile wallet service provider.
Often customers link their bank accounts or banking cards to the wallet to facilitate secure digital transactions. Another way to use wallets is to add money to the Mobile Wallet and use the said balance to transfer money.