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Innovation in digital payment landscape

CIOInsider Team | Thursday, 28 November, 2019
CIOInsider Team

Consumers are quickly substituting direct cash payments to non-cash payment methods that give simple and convenient ways to transfer money across bank accounts. Digital payments transaction value is growing at a high range which helps in the emergence of the country in the technical field. Even the smaller payments are going through digital transactions nowadays. The method of virtual token is considered as a reality to change the whole world into new digital world. Digital growth and knowledge about technology can only help the country grow among other countries.

The implementation of digital payments remains low at 5 % and a majority of payments are still complete through cash, the possibility for future innovations in digital payments are endless.

More than 95 % of Indian trade expenses are offline, of which 70 % are cash payments. In detail, over the earlier year, diffusion of digital payments is no longer limited to urban India and is progressively being approved by cities all over the country. The evolvement of technologies helps the consumers as well as the merchants to establish a growth in the industry.

There was a drastic change in the country after demonetization and the change has shifted people to have a non cash payment method which transformed to the digitalisation of transaction. One of the major disadvantages of the traditional system of card payment was, when cards are stolen or missed can lead to authorised charges and similarly the new card will not be provided quickly. But now credit card companies have improved their technologies in securing their customers safety. Artificial Intelligence and Machine Language are contributing to the payments ecosystem and developing the customer knowledge drastically.

These implementations are serving financial institutions expand better customer insights by analysing their payment behaviour and giving them a notice with preferred services. These tools positively are reducing fraud and security risks. As we shift forward, the industry of digital payments will require an on-going new user experiences which are innovative and according to the need of people. India’s digital payments transaction industry is in an early phases and is composed for exponential growth driven by sustained growth of smart-phones, improved adoption of digital payments by both consumers and merchants and technological innovation by primary ecosystem companies. Over the next five to ten years, increased personalisation, broader acceptance across the markets will assist in bringing rest of the Indians who are on the Internet, but are not using digital payments yet.

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