New Delhi: Digital payments saw an exponential spike in the pandemic era as the ease of doing transactions has motivated consumers to go digital. In the last couple of years, there has been tremendous growth in India’s digital payments space as consumers and merchants have experienced the convenience and safety of digital adoption. In line with Financial Literacy Week announced by Reserve Bank of India (RBI), Mastercard has shared how digital payments provide convenient and seamless experiences for consumers contributing to this year’s theme of ‘Go Digital, Go Secure’.
Digital payments have been one of the biggest drivers of e-commerce. The ease of getting goods delivered at the doorstep has made the consumers feel confident about ordering online and using digital payments. Additionally, digital payments allow consumers to enjoy a comfortable life by offering varied payment options as they don’t have to carry wads of cash or queue up for ATM withdrawals.
Adopting new methods of payments like contactless cards, tap-and-go, QR codes etc., helps in mitigating risks, making digital payments simple and secure. These latest technologies facilitate advanced intelligence to assess behavior patterns and create a layered defense against unauthorized access to information and avert online frauds. With improved technology and awareness, digital payments provide people with a safe, secure, and seamless experience. The introduction of Card-on-File Tokenization has will add a safety layer to the digitized payment ecosystem by replacing the card number with a unique alternate number called “token.”
As with consumers, digital payments are often the gateway for small businesses into formal financial services. Digital payments integrated with their business systems have helped businesses cater to the changing consumer preference for digital payments, scale up their business, and develop a digital financial footprint, which they can use to seek formal credit from financial institutions. In addition, digital payments have further helped solve the infrastructure challenges, offer convenience, and create a secure and convenient way to bring new businesses and micro-merchants into the digital ecosystem.