Pandemic & the “New Normal” has brought many changes to our lives, whether it be social distancing, wearing masks, sanitizing every few minutes or simply the way we interact with the world around us. One major change that Indians seem to have embraced is the way they transact, moving away from cash and towards digital payments options be it Credit Cards, Debit Cards, Wallets or UPI.
There are many digital payment modes available in our country, they can be classified under 3 main categories: Net Banking (NEFT/IMPS), Cards (Credit & Debit cards), Wallets & UPI.
Among all these categories, UPI reigns supreme. UPI as a payment instrument has bounced back to pre-Pandemic levels and in fact hit an all-time high of 1.34 bn transactions in June which had fell to 999.57 million in terms of volume with transactions worth Rs 1.51 lakh crore in April. This is in stark contrast to both debit & credit card transactions which have seen over 50% drop in transaction volumes.
Indians are notoriously famous for being cash-biased & want to use cash to transact anywhere and everywhere. Despite having widespread digital payments options such as wallets and UPI payments, the shift away from cash has been slow paced. Pandemic has made most people realise that cash has an inherent risk of germ transfer and should be avoided.
Digital Payments are safer and easier to use & reduce the risk factor for users. For the average user there is no additional charge on making a UPI transaction and is simpler to use than most other digital payment modes. Everything from an Auto Wala, to a chemist, from a roadside grocery vendor to a salon have a QR code. And you must commend the efforts made by UPI players to boost the acceptability of UPI. UPI allows users to make seamless, contactless payments and stay safe in these times.
If you compare the same situation with cards, not all shops have a POS machine and even if they do, they won’t let you use them for transactions less than a pre-defined amount (due to MDR charges), so you can’t just swipe your card for a Pepsi. And no Auto wala, or a grocery vendor will ever have a POS machine. Compare the same thing with Net Banking and you must go through the painful process of adding a beneficiary, waiting for it to reflect & then make the Payment. When compared to wallets, there is no additional step of adding money to a wallet or have the acceptability issues that most wallets face.
UPI Payments are faster (require just 3 clicks), real-time (reflect instantly) & free (no MDR). You pay directly from your bank account and are completely secure as they abide by RBI’s 2 factor authentication mandate (device binding & UPI Pin)
Pandemic has managed to do what demonetization couldn’t. Make Indians embrace digital payments. People who used to swear by cash have embraced this new technology. Even maids, drivers & guards have started accepting salaries directly into their bank accounts by leveraging power of UPI.
If you use UPI, then you must download the Finserv MARKETS app. Using the MARKETS Pay UPI handle you can enjoy all these benefits and much more. The experience on the app is smooth and seamless. You can pay your bills (electricity, mobile, gas, DTH etc.), pay your local grocery vendor, buy things online or send money to a friend. The app is convenient and easy to use, what’s more it has offers for doing each of these activities. I would highly recommend this app to everyone, it is the one stop shop for all your financial needs be it insurance, loans, investment or even online shopping.