Digital Payments: Issues and Opportunities in India

The demonetization resulted in tremendous growth in digital payments. With the Government initiative like Digital India and increased use of mobile and internet are meant to exponential growth in the use of digital payment. This transformation towards digital payments benefits in additional transparency in transactions which empowers the country’s economy. In recent days many changes happened within the payment system like digital wallets, UPI, and BHIM apps for a smooth shift to digital payments. The paper talks about the services that the purchasers prefer from the payment banks. It also captures how convenience/ease helps payment banks to expand their customer base. The role of demographics as deciding factors for patrons in choosing payment banks is studied during this paper. The paper further studies the effect of reference groups on the customer’s decision to settle on a bank. Payment gateways have emerged because of the most vital contributor in pushing Cashless and electronic payments. The surge of smartphones and internet connectivity of 3G and 4G is reflected in the robust growth of payment gateways in India. this study is concentrated on Customer preference towards payment gateways concerning Charges and Risks and effectively analyzed the impact of demographic variables on the usage of Payment gateways.

Digital payments have found strong ground, especially in India, increasingly relegating all other modes of payments to the background. it's through a faster system of simultaneous debits and credits that the cash value is transferred from one account to the opposite across banks. It embraces all types of operators (including direct benefit transfer by the government) across the country and even internationally, subject to regulatory forbearance. With such versatility and simple settling financial transactions, the expansion of digital payments goes to be phenomenal, supported by banks and Fin-Tech, or financial technology, companies.

By: Raghav Saxena

Birla School, Pilani