In India, digital payment usage has drastically increased in the past three years with over 100 million users, all thanks to demonetization. Also, a recent study by ASSOCHAM-PWC predicts that the country might witness a CAGR of 20.2 percent in the digital payment transaction. We have come a long way from using cash as the medium for all transactions, to going cashless by mostly relying on digital wallets for our regular transactions. Considering the growing demand for the changing payment modes, the banks have also transformed their services. The cashless economy has brought in a lot of benefits to the user like easier payment, rewards & cashbacks, easy access, and so on.   

Currently, the digital payment mode is undergoing a constant revolution. Here are certain factors that are influencing digital payment in India.

Easy Access

According to sources, digital wallets have contributed about 40 billion to global payment revenue. The high rate of smartphone usage has made way for m-commerce to turn into a regular business now. Mary Meeker's Internet Trends Report 2019 states that India's smartphone usage is expected to be doubled to 859 million from 468 million by 2022. The m-commerce offers the features of in-app or mobile browser payment facilities which would eventually strengthen the digital payment mode.

Improved Technology

It is obvious that the latest technology upgradation would not just support the digital payments but also help in enhancing the payment service further to benefit the users. The blockchain technology represents financial ledger to store the transactions, which is renowned for its security. Using blockchain, digital transaction can be secured like never before, as this technology eliminates the need for mediators. In addition, AI's contribution has also been commendable in offering cheaper and secure payment services to the users.

Government's Support

The government's aim to achieve a cashless economy has persuaded it to introduce certain policies to promote digital payments. One such policy has proposed that the firms with an annual turnover of over 50 crore shall provide low-cost digital payment modes such as debit cards, NEFT, BHIM UPI, UPI-QR and more, to the customers with no charges or Merchant Discount Rate (MDR) imposed.

Presently, the scenario has changed from serving the customers to engaging them. Thus, every business is particular in offering efficient services to its customers. Companies involved in digital payments are no exception and are rapidly adopting the latest advancement to enhance their features. Smartphones play a vital role in increasing digital payments, hence, as the smartphone usage increases the digital payment would also eventually increase, also technology advancement and the government induced policies would add to it.  

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