New Delhi: To achieve the objective of the financial inclusion, the government is promoting every mode of digital payment. Banks and fintech companies adopting new technologies for ultra-fast transactions, incentivisation of digital payments and use of data are some of the emerging trends that will push forward the adoption of digital payments.
A look at four key trends in digital payments:
Instant payments: UPI (Unified Payment Interface) technology is going to lead the way for the digital payments industry in India. With the launch of UPI 2.0 by NPCI (National Payments Corporation of India) on 17 August, more people are expected to conduct cashless transactions. UPI 2.0 provides some new features like linking of overdraft account, invoice in inbox and one-time mandate.
Mobile wallets: The use of mobile wallets is rising, which can be attributed to the adoption of highly secure technology by banks and fintech companies. With many banks and fintech firms also offering incentives to consumers for choosing digital wallets for payments, retail payments are likely to grow at a faster pace in 2018.
PoS machines: Use of PoS (point of sale) machines is growing as the government and retail companies are pushing for less-cash payments. As PoS machines are cheap, banks are pushing them in comparison to ATMs, which require large investments.
Artificial Intelligence: Use of AI (artificial intelligence) technology in the digital payments ecosystem will make transactions more convenient and secure. AI can take digital payments to the next level.
Experts believe that with the integration of all payment applications and use of technologies such as AI and machine learning, the digital payments landscape will undergo a drastic change in the next few years.
“Digital payments will see the biggest explosion when all the payment applications start integrating," says Dewang Neralla, CEO, Atom Technologies.
The digital payments market in India is slated to reach $1 trillion by 2023 and mobile payments are expected to rise from $10 billion in 2017-18 to $190 billion by 2023, according to a NITI Aayog report.
“This is the right time for business leaders and organisations to identify opportunities and invest in innovation that can benefit from the exponential technologies," said Kalpesh Mehta, Partner, Deloitte India.