Ravi Speaks:
Digital
Transaction is the "new normal".
While we are in
the market or even traveling long or short distances-we would find a very big
change happening in terms of cash transactions getting almost converted to what
we call Digital transactions. Suddenly in a very short period, I feel such a
change has occurred. The full credit of this change happening goes to the
Indians-both the young and the older ones.
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| Different Digital Ways To Perform The Transactions. |
Digital Transactions is the 'new normal' now:-
Digital
Transactions happening everywhere are also called electronic Real-time
Payment Transactions. It is the exchange of significant worth starting with one
installment account then onto the next utilizing an advanced gadget like a cell
phone, POS (Point of Sales) or PC, computerized channel correspondences like
versatile remote information, or SWIFT. Digital Transactions techniques, like
IMPS, NEFT, RTGS, IMPS, speculations, bank articulations, charge installments,
and so forth, are accessible on a solitary stage in versatile banking
applications. Banks themselves urge clients to go computerized as it makes
processes simpler for them as well.
Payments
Are Being Done Cashless Through Mobile.
Computerized installment
types or Real-time Payment Transactions incorporate the following:
• Purchases made through versatile/electronic
wallets (phones and smartwatches)
• Cash moves through versatile installment
administration applications and QR codes (e.g., PayPal, Venmo, Zelle, and so
forth)
• Online-based buys (e.g., programs or
applications)
• Crypto installments.
What are Digital
Transactions?
Such
transactions are types of contactless, credit-only, and paperless installment
techniques. Innovation has permitted the world to accept these more helpful
trades of installments through administrations like portable applications and
AI/AI.
The total
global transaction value for the digital payments market was $5.44 trillion out
of 2020. Driven by the continuous rush of development and rising client
interest, that number is projected to beyond twofold to $11.29 trillion by
2026.
Here are
different sorts and methods of computerized installments/Digital Transactions:-
A portion of
these incorporates the utilization of charge/Master cards, web banking,
versatile wallets, advanced installment applications, Unified Payments
Interface (UPI) administration, Unstructured Supplementary Service Data (USSD),
Bank pre-loaded cards, versatile banking, and so forth.
Scope of its spread in Indian Markets especially:
Fintech players such as Paytm, Phonepe, and Google Pay have built
dominant market shares in UPI payments, which are clearly on the rise and have
already surpassed other payments forms like credit cards and debit cards.
Paytm, Phonepe, and Google Pay have been active on both the issuing and
acquiring sides.
The value of digital payments in India would grow three folds to touch $-one trillion by the financial year-2026 as against $300 billion worth already done in2021. Thanks to the very liberal policies floated by the Government of India.
Introduction of UPI in the Realtime Payment Transactions:-
Here UPI has played a very dominant role by capturing 60% of the
business in reaching to $300Billion mark in 2021-which was a very meager amount
of $61 Billion in 2006.
Here again, the introduction of the UPI monthly transaction method was
introduced in 2016 and within four years the amount transacted by Sep-2020 was
around Rs.3 lacs crores. The major role played in its boom has been the very
low internet charges levied by the government, the high level of smart Mobiles
being purchased by the Indians, and above all the extensive completion of the
Biometric identity procedures already done by the authorities. The Aadhar card
made for almost all Indians has also played a vital role in the spread of
digital transactions. The UPI system with the high intensity of Mobiles
purchased by the Indians has even reduced the usage of Credit/Debit cards to a
very greater extent posing a real challenge to the Banking sector as far as
their Card business is concerned.
Government's Initiative in creating more confidence in Rural segments:-
Earlier if we remember there were many people especially from the rural
sector who were having their apprehensions on the security and authenticity of
Digital transactions but with the passage of time and the Government’s
initiatives being given to all the people for accepting this digital
type-really made a huge difference and today this cashless economy is picking
up very fast in Indian transactions. The usage of cash is almost getting minimized
to the lowest possible and that way the money accumulation giving rise to the
slow obliteration of Black money also happening. This also gives a clear-cut
transparent transaction and even the international and interstate bank
transfers are also getting a very big weightage from the users.
We have the disadvantages of this cashless transaction-in which the
biggest are the Cybercrimes and the frauds happening. Secondly, the illiteracy
factor at the rural level is also still creating certain problems in the smooth
transactions not taking place with various issues attached. Importantly the
overspending of money through such an easy way is another challenge for the people
dealing with it. Their getting tempted at times puts them in a tight corner
after having spent more money than their expected budgets.
Whole Small Scale Retailers and Businessmen using this cashless transaction:-
We see almost all the small-scale shopkeepers, Tea Stall owners,
Vegetable vendors, and even the provisional store owners doing their business
with the help of the Q-codes which they display in their shops. This no doubt
is a very good sight and with this, the cash flow from the transactions is almost
getting eclipsed.
Simple Mobile even without a wallet would get you everything from the market:-
People with a simple mobile go to the markets and even if they don’t
have their cash wallets and even the credit cards-they very easily do a whole
lot of purchasing from all sorts of traders and shop keepers with the help of
their smart Mobiles. They have already kept the Apps installed on their sets
and the rest is a very simple process for everyone to perform.
With this the sight of the Purse-snatching or even the cash snatching
from the financial spots-where the people earlier would go to get the fresh
cash-have to a greater extent stopped. This is going to stop 100% with time very
shortly no doubt.
India tops the position in Digital Transactions as on date:-
India has held
the best position on the planet with 25.5 billion Realtime Payment transactions,
seconded by China with 15.7 billion worth of transactions. The Bank of Finland
has anticipated that it will be a completely credit-only country before the
finish of 2029-and there's a great deal of information to back up this case.
With 98% of all Finns claiming a check card and 63% possessing a Visa, almost
the whole populace can pay without utilizing cash.
Even in the USA
where the total percentage is 82% with a very low population as compared to
India-still, we would rate India to be the top one since the population of the
country and the number of people involved in the Realtime Payment Transactions
is the highest and that way a very big achievement and a matter of pride for
all of us.
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