Introduction-digital payment services in India

Before digital payment services, payment is mainly through cash or cheque in transactions today. In another word, any financial transaction that is a manual payment process has the potential to be a human error. And they said the manual method has a high probability of producing crime directly or indirectly. However, indeed the beginning of the Internet age has created the possibility of many conveniences to meet the needs.

Meaning- What is digital payment       

INITIALLY, we understand digital payments here, of course, in the said payment method through, electronically and with the help of the internet, truly for human beings can be present indirectly from any corner of the world there. Therefore, make their payments as per some prescribed guidelines.

DIGITAL PAYMENT IS Contactless, cashless, and paperless payment methods

Objective of digital payment                

The basic purpose of every one country’s government in promoting digital payment methods is to reduce the amount of risk and cost involved in large-scale cash transactions.   

What are types of digital payment?

First, the government of each country for the welfare of their citizens and the country mainly implements the use of the under mentioned tools in digital payment methods.

1. Debit / Credit card
2. Internet banking
3. Mobile wallets/ Mobile banking
4. Digital payment apps/ Bank prepaid card
5. Unified payments interface service (UPI)
6. Unstructured supplementary service data (USSD)
7. etc.

Fast digital payment

Here, all in all, the digital payment system is particularly a payment service provider and a combination of payee and payer to complete financial transactions and needs tasks with the help of as well electronic devices. And so due to which digital payment method is relatively to be sure faster than a manual payment method.

Advantages of digital payment

Still, the benefits of dealing with a digital payment method are as follows:

1. One stop solution for paying bills and other financial liabilities
2. Digital record of transactions
3. Cash back, discount and waivers
4. Economical and less transaction fees
5. Faster and more convenient
6. Direct payment
7. Payment possible in various currency  

Disadvantages of digital payment

First, the disadvantages of dealing with a digital payment method are as follows:

1. Security- But sometimes possibility of hacking of accounts happen
2. Disputed transaction
3. Increase business cost
4. Difficult- Tracing
5. Totally depends on internet and server

What is a digital payment example?

Second, the examples of dealing with a digital payment method are as follows:

1. Physical-POS

• M-POS
• V-POS
•  Etc.

Reserve bank of India

Of course, the guidelines for dealing with digital payment methods are as follows:http://Reserve Bank of India - Homepage (rbi.org.in)

Conclusion

In the first place, a digital payment facility is a good option that makes human life easier and smooth. But it is very important and necessary to use the digital payment option carefully keeping in mind the security.