About Various Means of Digital Payment
India’s journey toward a cashless economy is very interesting. Mobile and the Internet played the role of catalysts in popularizing digital payment. Due to the internet, digital payment has become very easy. There are various means of digital payment that are being approved across the country because of the Internet.
In this blog, we’ll read about various means of digital payments. We’ll know how these different means of digital payment help in paying money.
A bank card is a card issued against a depository bank. (A financial institution maintains a depository bank account. From this bank account, you can deposit or withdraw money. It can be either savings or current accounts).
A bank card can be used for e-commerce purchases. Banking cards are widely used in digital-based payments. It can be either a credit, debit or pre-paid card.
Four Types of Cards
The cards issued by the bank are categorised into four different types. They are debit cards, credit cards, prepaid, and electronic.
Unstructured Supplementary Service Data (USSD)
USSD was introduced to increase the use of digital payment. The USSD has enabled us to do transactions by dialling *99# service. For using USSD mobile banking, you don’t need smartphones. This could be done via a feature phone. The service of USSD is provided by many banks in India.
The several uses of USSD are
- Enquiry about the bank account’s balance
- Money transfers
- OTP generation
- Generating bank statement
- Mini statement
The main objective of this service is to empower the weaker section by introducing them to the world of digital payment. That’s why this service is available in 12 different Indian languages. English, Tamil, Hindi, and Bengali are a few of them.
Aadhaar-enabled payment system (AEPS)
The AEPS system made financial and banking services accessible to all sections of society. It is an Aadhaar-enabled payment system that helps you to
- Transfer funds
- Deposit cash
- Pay funds
- To withdraw money
- Check your bank balance
AEPS allows money transfers between two banks if they are linked with their Aadhaar Numbers. The amount of transaction varies depending upon the banks. You don’t need to go to your bank for transactions of money.
Unified Payment Interface(UPI)
It is an application that allows money-transferring between accounts. To transfer money with the UPI app, you need a smartphone. UPI accumulates different bank accounts on a mobile application.
Wallets are used for holding cards and money. Likewise, a mobile wallet or e-wallet holds your digital currency. It is getting popular these days. You can link your bank accounts to mobile wallets and then freely use money from the wallet. Through a mobile wallet, you can scan the barcode and make payments easily.
Point of Sale (PoS)
The traditional POS was seen at a place where sales are done. The POS system was used in a distinct area like a billing counter. Later, with the innovative technology, the features of the POS system evolved.
Now, you can use cloud-based POS systems anywhere in the field. For example, now one can carry the POS system to the location of the customer. These systems are portable.
With the help of a POS machine, you can transfer (up to INR 20000) without a PIN. It is said that you can do fast funding through the POS system.
Things to Care about while making Online Payment
There are several modes of electronic payment. Almost, all of them are worthy. But, online payment poses a great risk. So, you should always care about the credentials while paying online.
- Never share your password.
- Always be aware of fraud.
- Never use public WiFi networks.
- Use a private window while using apps like UPI. Always, Logout safely.
There are various means of digital payment through which we can complete our transactions within a few minutes. We don’t have to take cash with us wherever we go. Digital payment has made our life easy.