The Rise In Digital Payments- In India And The World
As stated in a report by NPCI (National Payment Corporation of India), there has been a significant rise in digital transactions in India. Covid-19 proved a sort of watershed moment for the fintech industry in India. The fear or virus forced people to start contactless payment methods, which has led to the soaring of digital transactions.
Fintech companies are those companies that indulge in providing better financial services with the help of technology. So, financial technology is used to describe new technology to improve and automate the delivery and use of financial services. The rise in digital transactions shows how comfortable Indian customers are in using digital transactions platforms. Zambo is one of the Payment network portals in India that assists customers with facilities of Money transfer, DTH recharge, prepaid recharge, electricity bill payment, landline bill payments, and so forth.
Digital payments are expected to proliferate in the next few years. According to a report, by 2025, the share of digital payment methods in total transactions will reach 71.7 per cent. At the same time, the percentage of other mediums like cash and cheque will be reduced to 28 per cent. This has been said in the report of ACI Worldwide, a company providing payment solutions to various companies. According to the report, in 2020, India overtook China in terms of real-time payment transactions. There were 25.5 billion real-time payment transactions here, compared to 15.7 billion in China.
Last year, digital payments accounted for 15.6 per cent of total revenues in India, 22.9 per cent for other electronic modes, and 61.4 per cent for paper-based payments. By 2025, this picture is projected to change completely. The report said that due to the pandemic, there had been a drastic change in the behaviour of consumers and companies. Banks, merchants, and other intermediaries prefer to shift to digital. In 2020, India, China, South Korea, Thailand, and the UK ranked first five in real-time transactions. Mobile wallet payments also saw a historic jump of 46 per cent in 2020.
There was a jump of 40.6 per cent in 2019 and 18.9 per cent in 2018. Countries like Brazil, Mexico, and Malaysia, where large populations depend on cash, increasingly adopt mobile wallets. There is a need to make people aware of the benefits of digital transactions. For individuals, who are looking to start digital transactions, Zambo is the best choice with ease of use and a 3D-secured transaction system.
