Increasing smartphones usage and greater usage of the internet have influenced people of India in huge amount. Which has given a rise to development in payment methods in India. India is witnessing an exponential growth in the area of digital transactions. India is all set to see a huge change in payment method in a couple of years. Furthermore, Government has also take step towards “Digital India” which will act as a key catalyst.
There are 7 future trends that will take place in Digital payment:
1. Merchant acceptance network to grow 10* by 2020.
2. Technology will make digital payment simpler.
3. Payment will drive consumption and not the other way around.
4. Modified UPI will be the game changer.
5. Digital identity will accelerate customer acquisition.
6. Cash to non-cash ratio will invert over the next 10 years.
7. Consolidate will drive ubiquity.
In a recent report, a research analyst Ashish Gupta, Sunil Tirumalai, Kush Shah, Anurag Mantry and Viral Shah cited trend of digital payments in China as an example. Digital payments in China rose over USD 5 trillion in the past four years on the back of rising mobile and data penetration. In a couple of years ago, people used 1GB internet for 1 month and currently, the tables have turned it is noticed nowadays usages has raised to 1GB per day. The wave in digital payment in China was triggered by its integration into e-commerce and social platforms, which now have a 95 % market share,” the reporter said.
UPI has made a huge change in P2P payment and a lot of recurring cash transactions have perhaps moved to UPI. This is also considered as the huge positive step for the payment ecosystem. There is much digital payment app available in the market like Paytm, Phone pay, Tez which are very beneficial for one. Tez is one of the best e-payment gateway launched by the Silicon Valley-headquartered company in September 2017, accounted for 52% of UPI transactions in India in the month of December 2017. A Credit Suisse report stated that Tez the app by Google is way ahead of BHIM app(launched by the Indian government in January).
Remittance is in developing countries are growing by 5%. This is clear hint that the mobile wallet market is a money making a market. India sees 55% increase in a digital transaction in a year.
Mobile wallet suppliers are rising as mini banking organizations and it won’t be shocking if they get banking licenses in the future. This will be very terribly profitable if we have a tendency to take into thought the government’s agenda of monetary inclusion.
Many application services available in the market:
After Demonetization, a year later ATM’s where full of cash. But people preferred to use digital payments. Because of this many apps are introduced in the market like Tez by Google a mobile payment service, Paypal’s India’s prepaid service app also been launched. The government of India runs NPCI’s UPI( Unified Payments Interface) supported by the Bhim app and most of the bank apps. Nowadays other apps have also started supporting like Uber and Paytm.
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