Authored by Amit Gupta, Founder, Rupay Bachao
India’s massive shift toward digital transactions
India’s economy in the early years was majorly dependent on cash for making any kind of trading. Back in 2016, an idea to transform the cash-dependent India into a cashless digital India was introduced in form of demonetization. The ultimate motive of demonetization was to build a safer Digital India.
The growing Indian economy is adapting to technological and innovative changes in its lifestyles. The foremost technological change observed in past years is making a financial transaction through digital payment mediums. Financial sector has also initiated various online and offline security measures to enhance convenience and confidence of common man.
With a vision of turning India into a cashless economy, various steps have been accommodated in form of online payments, card payments, net banking, token free money and many more. To defeat the security challenges authentic ways of password verification, digital IDs, or OTP in financial transactions are introduced to ensure security factors. They not only impede fraud but also maintain smooth and seamless transactions.
Reimagining the growth of financial transaction
Previously buying goods and services through traditional cash transactions has now been shifted to electronic transactions. The advancements in technology have generated a flexible and safe way of transacting money without involving physical cash. Since the introduction of electronic payments, people prefer to use digital financial transactions and make payments by smartphones or laptops only.
Digital payments have elevated growth in the E-commerce sector through real-time accessibility of e-commerce products and their availability 24 hours a day, together with the ease of making electronic payments. This has initiated an exponential surge in sales figures, revenues and profits without involving cash transactions. Safety and security are the key drivers of booming cashless electronic payments providing enormous benefits/countless incentives to a seller and consumer while receiving and paying the bill respectively.
How digital transactions are secure:
Authentic in nature: Digital transaction has now become a very convenient source of transferring amounts and an authentic way of verifying information. By promoting verified details and authentic procedures for transacting money, online payment platforms have created their diversity of safety and security.
Prevention of fraudulent transactions: Transparency is another prominent factor influencing security in digital payments, it creates reliability as every transaction ever made is recorded on a ledger and can be easily tracked down. This leads to the prevention of fraudulent transactions and drives users towards digital payments to have a safe transaction.
Trouble-free payment mode: Technical advancement has also encouraged digital payments with enhanced security. It eliminates technical issues while transacting and allows the user to initiate a hassle-free payment.
Eliminating usage of hard cash: Digital payments have lowered the crime rate and the risk of carrying hard cash in public places. Making financial transactions remotely after a pandemic has gradually increased the user base and promoted less usage of hard cash.
Formation of verified bank accounts: A cashless economy has generated a high demand for owning bank accounts which will ensure a higher financial inclusion rate. It will enable financial involvement of tax revenue as it offers transparency of money transactions and minimizes the possibility of tax evasion exponentially.
Security powered by modern technology:
With a customer-centric attitude, India’s digital payments industry is utilizing solutions from banks and Fintech startups to make the digital payment experience seamless and as secure as possible. Security is the most essential aspect of the digital payment sector. People will prefer the most authentic and secure website to transfer the financial amount that’s why by integrating machine learning and artificial intelligence in form of text or OTP (One Time Password) verification, the process of enhancing security takes place.
Many Fintech startups have initiated to promote cashless transactions with their unique selling point. These brands have a secure and transparent way of data sharing policy, recording the transaction in the official book of accounts and offering double authentic passwords in form of OTPs. Aligning with the same objective of enhancing security, banks also offer digital security in every transaction in form of OTPs to prevent fraudulent transactions.
Way forward for digital payments
With various innovative techniques, the digital payments sector has geared up its presence among the people. The revolutionized pattern of transferring amounts is taken up by business leaders to reframe the financial structure and diversify their client bases. Through digital payments, every brand is forming feasible payment modes to be a reliable brand and offer seamless digital transactions to their customers. Digital payments help in proving verified recognition to the customers that build a level of trust between consumer and buyer.
The future of payments is digital payments with enhanced security features. With every passing day, technology is developing better ways to shape security and reduce cybercrime on digital payment platforms.
