Earlier most of the payments were made by using cash and cheques. Hence, cash and cheques were commonly known as the payment instruments. But the evolution of Digital Payment Industry has changed the entire payment system. However, digital payment is not a single instrument but it is a term that is applied to many instruments used in different ways. It is basically a way of paying for services or goods via electronic medium without use of any cash or check. It is also as electronic payment system or e-payment system.
What is Digital Payment?
Digital payment refers to electronic consumer transactions, in which payments for goods and services are included which are made over the internet, mobile payments at point-of-sale (PoS) through smartphone applications (apps) and peer-to-peer transfers between private users and consumers.
This has been possible with the development of the internet, online payments began to operate first in the 1990s. Established of Stanford Federal Credit Union in 1994 was the first institution to offer online banking services to all its customers. In the starting, online payment system was not user-friendly and needed specialized knowledge of data transfer protocol.
Individuals everywhere throughout the world began utilizing the inclining strategies when they embrace an arrangement of instalment for things that they need and need. Advancement is the characteristic slant to create and utilize frameworks to achieve practical answers for ordinary errands. The advancement of electronic payment frameworks takes after accessible innovation, which can achieve the alluring result of tolerating money in return for products.
The Birth of eCommerce
Today’s world is the world of e-commerce and it is the result of one man’s effort. In 1979 Michael Aldrich introduced a technology which allowed consumers to make direct purchases over the phone and electronic medium. His innovation paved and introduced a new the way for many businesses and customers to transfer their money electronically. This process was 100% secure and purchases used to happen instantly.
It was a result of Aldrich’s efforts, that Google developed Google Checkout in the year 1996. Google Checkout’s purpose was to simplify the mode of payments which were done online. This was done by providing fraud protection and other tracking services. Through this users become enable to store their credit or debit card and shipping information in their Google Account, so that they could purchase at participating stores by clicking an on-screen button.
Transparency in the System
Introduction of cryptographic form of money is the main thrust behind the present monetary development sponsored by a dynamic Payment network uniting dealers and purchasers for the advantage of both. The bitcoin is as yet trial with different nations attempting and neglecting to build up an all-around satisfactory cryptographic money. Today, the worldwide economy requests transparency while developing levels of security endeavour to shield us from ourselves.
Managing an account frameworks around the globe are encountering an expansion in business because of incitement of the economy, which keeps on making strides. Shopper requests for straightforwardness inside the managing an account industry have been a useful fixing in the present condition of financial incitement. Free businesses are paying their specialists in bitcoin cash as that digital money has a recipe control behind it.
Major New Digital Payment Modes in India
Through Online and Mobile Apps
- Money is stored in app via recharge by debit and credit cards or net banking and can be transferred through the same.
- Online wallets are mostly used via internet and through smartphone applications to transfer money throughout the world.
- Consumer wallet limit is INR 20,000 per month or INR 100,000 per month after KYC. The merchant wallet limit is INR 50,000 per month after self-declaration, and INR 100,000 after KYC verification.
- Facilitates P2P fund transfers is also one of the major transfer mode.
- Prepaid Credit Cards
- Debit/RuPay Card
Introduction of these this is moving Indian economy forward and it has provided ease to the customers and applicants too. GoI is taking major step of making Indian economy totally cashless and we are moving forward towards it.