Online payments are transactions that happen online or through other digital platforms without a physical exchange of money. This indicates that both the payer and the payee exchange money electronically.
The government has implemented several actions to encourage and promote digital payments in India. Through the “Digital India” initiative, the government seeks to create an empowered economy that is Cashless, Faceless, and Paperless. Various formats and methods are used for digital payments.
Please be advised that customers can make digital payments in person and online. For instance, it counts as a digital payment if you make an Amazon purchase and pay with UPI. Similar to the previous example, if you purchase at your neighbourhood Kirana store and decide to pay with UPI rather than cash, that is also a digital payment.
What are the different types of online payments?
We now have various online payment options available in India due to the implementation of Cashless India. Some techniques have been in use for over ten years, while others have only lately gained popularity.
Cards
As an alternative to cash payments, Indians frequently utilise debit/credit cards, prepaid cards, or banking cards. In 1981, Andhra Bank introduced the country’s first credit card.
Cards are preferred for a variety of factors, including but not exclusive to mobility, convenience, safety, and security. This is the only type of digital payment that is widely used for both online and offline transactions. Numerous applications, like Cred, Square, etc., are released solely for managing card transactions.
Unified Payments Interface (UPI)
A payment system called UPI combines many bank accounts into a single application to make it simple to transfer money between any two parties. UPI is significantly more defined and standardised across banks than NEFT, RTGS, and IMPS. You may start a bank transfer via UPI from any location with only a few clicks.
The advantage of using UPI is that you can make payments directly from your bank account without entering your card or bank information. In 2020, this method became one of the most widely used digital payment methods, with more than 2 billion transactions recorded in October.
Mobile wallets
Mobile wallets are a type of wallet where you can carry cash in a digital format, as the name implies. Customers frequently connect their bank accounts or credit cards to the wallet to enable safe online transactions. Adding funds to a mobile wallet and then transferring funds using that amount is another way to use wallets.
These days, numerous banks have introduced their wallets. Famous private companies have also made their presence known in the mobile wallet market.
Online banking
Customers of a specific bank are given the option to perform transactions and engage in other financial activities online through internet banking, sometimes referred to as e-banking or online banking, on the bank’s website. To make or receive payments online and to access a bank’s website, which is known as Internet Banking, you need a reliable internet connection.
The majority of Indian banks have now made their internet banking services available. In India, a virtual banking option is available on every payment gateway. It has grown to be one of the most widely used methods for making purchases online. Some of the most popular methods for doing transactions via internet banking are NEFT, RTGS, or IMPS.
What advantages can online payments offer?
There are numerous advantages to using online payments. Ensuring financial equality becomes a significant concern in a country like India, where discrepancies can be extreme. Our government began advocating for the Cashless Economy and Digital India to increase access to financial resources.
Comfort and simplicity
The seamless experience online payments offer clients is one of their most important benefits. You can instantly send and receive money using digital payment methods from anywhere in the world. Online payments are a favoured option because of the decreased reliance on currency, quick transfer times, and simplicity of transactions. Cash and checks are common payment forms, contributing to other considerations, including risk, steps, and physical presence.
Economic development
When customers experience the simplicity, ease of use, and security of online payments, they engage in more online business. This indicates that an increasing number of people are at ease making purchases, making investments, and moving money using electronic means. The expansion of online commerce and money transportation both help the economy grow. Because of this, new internet businesses are starting up every day, and a growing number of them are turning a profit.
Protection and effective tracking
It takes time and effort to handle and deal in cash. Along with the chance of losing money, carrying cash about and keeping it secure can be a bother. One may easily keep their money secure online by using online payments. Thanks to UPI, netbanking, and mobile wallets, you can make and receive payments with just your cell phone nowadays. A customer can track his funds using most digital payment channels’ regular updates, notifications, and statements.
PayU Payment Gateway, Your Ultimate Solution For Online Payments
Your digital payment partner, PayU Payment Gateway has helped more than 5 lakh businesses. It enables companies to accept digital payments using more than 150 online payment options, including Wallets, QR Codes, Net Banking, EMIs, BNPL, and more. One of the top payment gateways is PayU, which guarantees a smooth checkout process and has the best success rates in the business.
Your and your customers’ money is secure with the PayU payment gateway since PayU complies with PCI-DSS standards. We want to allow all organisations, enterprises, freelancers, and entrepreneurs to use online payment methods to expand their operations.
A payment gateway is equivalent to a portal connecting your bank account to the platform where your transactions occur. The most straightforward approach for a company to accept online payments through their website is through this third-party addon. Your first choice should be PayU Payment Gateway if your business has a website or an app.
Participate in India’s transition to digital payments!
In India, the trend toward digital payments isn’t going away. Online payments are anticipated to increase dramatically as financial accessibility and awareness become more prevalent. As a business owner and professional, now is the time to embrace digital payments and give your clients the ability to trade safely online.
FAQs
A payment gateway is an electronic tool that supports businesses in processing online payments. The website reroutes visitors to the payment gateway service provider whenever they click “Make a Payment” on the checkout page. After the consumer submits the payment information, the PG quickly checks to see if there is enough money in the customer’s account and then notifies the customer if the payment was accepted or declined.
