It is amazing to note that digital penetration in India is happening at a phenomenal rate. While the digital penetration in 2007 was only 4%, it rose to 45% in 2021. The overall industry is seeing growth mainly because of the government-backed Digital India Movement, with the digital payment segment that is catching up fast with the Indian crowd. Irrespective of age barriers, level of education and literacy, economic and financial status, Indian citizens residing domestically are using online payment methods and apps and benefitting from this technologically superior platform.
We all are familiar with the pros of online payments. The process happens really fast and in real-time. Consumers of the West Bengal State Electricity Distribution Company Limited (WBSEDCL) can now opt for quick WBSEDCL electricity bill payment by downloading a payment app powered by Unified Payment Interface.
Typically, there are four steps of the instant online payment process:
- The request is sent to the bank where the user holds his account or the digital wallet provider. Through an interbank posting, account-to-account fund transfer happens almost immediately.
- In the third step, the settlement between various financial institutions happens almost instantaneously.
- Lastly, a notification is sent to the user to confirm the fund received by the payee/merchant.
Behind this incredibly fast model of online payment is technology. With the rapid adoption of smartphones, replacing the physical wallet & cash with the digital wallet is happening at a tremendous speed. The good part is that different players are entering the Fintech industry with the promise of offering high-quality experiences to users. Some of these players are also venturing into newer product lines along with digital wallet options, which go beyond customer expectations, for example, options like buy now pay later akin to digital credit card, investing in gold or mutual funds, buying cryptocurrencies, etc.
Facilitating online payments – UPI
UPI stands for Unified Payments Interface. It enables interbank fund transfer from one account to another through the use of a single window. The different types of payments that you can pay using a UPI Payment App are:
- – Sending money or making payments.
- – Receiving payments or money.
- – Scanning QR or Quick Response Code.
- – Authorize payments.
- – Pay to a physical or online merchant.
- – Pay utility bills, recharge phones, and DTH, etc.
Before you initiate UPI payments with your smartphone, do note the following points:
- – Download a credible app on your smartphone after reading about it blog to follow.
- – Ensure that your internet connection is fast and secure.
- – Make sure that the site or the address from where you are downloading the app is safe and protected.
- – Verify an email address so that you can register with the app.
- – Link your bank account to the digital wallet.Doing so ensures that you do not need to enter the bank details every time you make payment.
UPI payments are fast and can happen round-the-clock. Such transactions are free of charge & secure. UPI was created and developed by the NPCI (National Payments Corporation of India), a government body responsible for overseeing all kinds of retail payments in the country.