Here is some helpful information on choosing the best Digital Payment Solution.
The digital transformation brought by the onset of advanced technology and internet penetration has brought a tremendous change in the way we perform our day to day activities. By embracing technology, various industry sectors have implemented innovative and efficient processes giving rise to virtual systems and interactions. The financial sector of India is one such to have undergone revolutionary changes. The ascent of Fintech companies and upgraded payment systems are a shred of evidence to India’s leap towards digitisation.
The major reason for the cashless transaction in India is the Demonetisation Act implemented by the Government in November 2016, which was complemented by the penetration of cheap internet services. That gave an impetus to the merchants and citizens to accept digital payment solutions. According to an Economic Times Report, by 2020 itself, the merchant acceptance of digital money in India is expected to increase by a factor of ten.
The most preferred methods of carrying digital transactions are through debit/credit cards, internet banking, mobile wallets, digital payment apps and Unified Payments Interface (UPI) service. Though the benefits of transacting sans cash are many, it has left the financial systems vulnerable to cyber-attacks and sophisticated malware. That is why many people still fear entering their bank account details on the internet and resist digital payment solutions.
As a solution to this issue and ensure a safe transaction, the following must be considered by customers before choosing a digital payment solution.
Factors such as tokenisation, where a 16 digit card number gets replaced by a token to safeguard original data, two-factor authentication and mandatory fraud prevention protocols ensure a safe digital transaction. Thus, a payment solution that makes sure minimum credentials are shared, is a better option.
That could be another factor for determining which payment solution to utilise. Instead of opening multiple user accounts on different platforms, it is practical to divide payment solutions into two categories-by using RTGS/NEFT/credit cards and debit cards for transactions over Rs.10,000 and UPI/IMPS/USDI/e-wallets for payments below Rs.10,000.
In the case of an e-wallet, there is an intermediary between a payer and payee and the rules governing e-wallet providers are also different from those governing banks.
In most of the payment solutions, a two-factor authentication, i.e. a login id and password set up by the user, is required which is coupled with a PIN or OTP sent to the registered mobile number. In the near future, an additional authentication level in UPI that is biometric authentication through smartphone scanners is proposed to be introduced.
In order to encourage a cashless economy, the government has been slashing fees or commissions charged by various e-payment solution providers. Currently, charges are leviable on debit cards used for online payments, whereas e-wallets charge no transaction fees.
In the case of UPI, the money transfer takes place directly from your bank account, eliminating the e-wallet operators. So it stays in your bank account and helps you earn interest on it.
There is no single best digital option that will suit everyone since the requirements of each individual will differ, but keeping in mind the above points will help decide which digital payment option works best for you.
AGS Transact Technologies Limited (AGSTTL), founded in 2002, is one of India’s leading providers of end to end cash and digital payment solutions and automation technology. The company has introduced various path-breaking technologies that have enabled cashless transactions, namely AGS QR cash and AGS UPI based cash withdrawal/deposit on ATMs and Fastlane. For further details, one can visit the adjoining link https://www.agsindia.com/payment-solutions.aspx.
