Digitize payments are observing 12% growth in India stated KPMG report. According to this report revolutionizing in the digital mode of payment impacted 1.5 million vendors to accept this mode in 2016-17.
The global market of digital payments is likely to reach $10 trillion by 2026.
Low setting up cost for the QR-code based wallet acceptance huge drive merchants to use this mode both for the convenience of the customer and also maintaining ethical cycle for the marketplace. One of the key factors which played an evolutionary role and democratized mobile payments in India was the role played by wallet companies. The ease of payments, omnipresence and convenience were the factors which have led to extensive adoption of digital wallets.
Support on different platforms and internal operational utility is working like wood to the fire in the favor of UPI transactions.
Mobile payments modes are also seen shifting in the past five years with the widespread of UPI and digital wallets. RBI also forecast a result of 50 % increase in mobile oriented payments as per its ‘2021 vision document’. This will lead to shift in consumer behavior and government’s vision to make India a cashless economy. To give a colossal boost to digital payments, PM Narendra Modi also gave the motto “yet to digital payment and no to cash”.
In one of his speech recently they said, 'We should encourage digital payment. Today also when we go to villages, there are boards at shops saying 'Today Cash, Tomorrow Debt'. I want to tell the countrymen that now instead of this there should be a board reading, 'yes to digital payment, and no to cash'.' With UPI and BHIM government targeted the rural community to make it easier for them to transfer funds. It will influence more people to adapt to cashless services. At this rate country’s digital industry will attract foreign investors spread their roots in India.
This will all end up creating more job opportunities in IT sector. With increase in users, the strengthening of digital ecosystem is also important to get hold on hackers and scammers. Big players like PayPal and GooglePay are investing huge amount in security and maintenance of the system.
Also with increase in internet users in India the mode of payment for online purchasing is also shifting heavily to cashless. India is only second to China with 450 million monthly active users at the end of financial year 2019. While the number is still growing it is expected to reach 600 million at the end of 2021. With this much force digital payment has the potential to rapidly grow in this country. Even Foreign countries are also investing a large amount of money to promote digital payments and also creating rules and regulations for it. Sweden is the top country with over 80% citizens which are using the cashless mode of payment for purchases and services. Many of the Swedes are not even taking the hassle for carrying cash.
Digital payments are also contributing high in system of theft and robbery. Also with 24/7 availability around the globe is giving it a huge advantage and comforting customers who did things on the last minute. The tracking of expenses is also gives this mode a upper hand, it’s super easy to track the payment details with merchant specific database. Whether it’s the customer or the vendor both can access the transaction information easily.
RBI projecting that the payment options like UPI and NEFT are going to give an average expansion of 100%. India industry is growing at the rapid rate and in upcoming years it will become even better.
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