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banking digital payments fintech Uncategorized

Everything you ever wanted to know about Rupay card

Rupay continues its winning run in the economy

Have you ever made an online payment? Have you ever felt the pinch of high transaction charges? If so, you are not alone. For example, international payment gateways like Visa and MasterCard charge high transaction fees. Further, in the case of Visa and MasterCard, banks pay a certain charge on joining the foreign payment gateway network. On the other hand, Rupay Card brings about a simplified payment transaction system in India.

 Launched in the year 2012 by the National Payments Corporation of India Ltd(NPCI), Rupay has revolutionized the payment ecosystem in the country with low transaction costs, nil joining fees, etc.

Rupay Card Basics
Everything you wanted to know about Rupay

In this blog, you will get answers to all your questions on the Rupay Card.

1. What is Rupay Card?

Rupay Card is an Indian variant of the card payment scheme as compared to international players like Visa and Mastercard. Introduced by the National Payments Corporation of India (NPCI) in the year 2012, Rupay is used for primarily domestic payments.

2. Features of Rupay

  • Inbuilt insurance coverage
  • Direct link with government schemes like Pradhan Mantri Jan Dhan Yojana
  • Regular cashback and merchant service benefits like fuel discounts
  • Free access to airport lounges

3. How to apply for a Rupay Card?

To avail a Rupay card, one needs to submit one’s id proof cum address proof along with two passport size photographs. All the public, private, regional cum cooperative banks issue Rupay cards in India. A form fill up at one’s branch along with the KYC requirements is the prerequisite for a Rupay card.

4. What are the transaction costs in Rupay?

As compared to international counterparts, Rupay comes with low transaction charges. For example, for a bank transaction of Rs. 2000, if Rupay charges Rs. 2.50, international payment systems charge Rs. 3.50.

5. Difference between Rupay Cards and international cards?

  • Transaction cost: As compared to international cards, Rupay comes with low operational costs.
  • Joining fees: There is a quarterly fee to be paid for joining the international card network as compared to nil in the case of  Rupay.
  • Security: Rupay is comparatively safer due to the limitation of its operation to India
  • Bank Network: Unlike Rupay, the international card network does not include small banks like rural and cooperative banks within its network.
  • International acceptance: Rupay is only acceptable within India as compared to Visa and Mastercard which is accepted internationally.

6. What are the Security features of Rupay?

While using  Rupay for a transaction, authentication happens with the entry of an OTP sent to the registered mobile number. Further, there is 256-bit encryption rendering Rupay difficult to hack.

7. Benefits of Rupay

  • Accidental insurance coverage
  • Low cost, easily accessible by people
  • Direct link with government schemes to avail added benefits
  • Faster bank transactions
  • Increases the popularity of digital payments in the Indian economy.

8. What are the variants of Rupay Cards?

On a higher level, Rupay can be classified as Credit, Debit and Pre-paid cards.

Based on the transaction limits, Rupay Credit card can be further classified as:

(a)Rupay Classic Credit Card: With an accidental insurance coverage up to Rs. 1 lakh

(b)Rupay Platinum Credit Card: With an accidental insurance coverage up to Rs. 2 lakh

(c)Rupay Select Credit Card: With an accidental insurance coverage up to Rs. 5 lakh

On the whole, Rupay continues its winning run in the Indian economy. Interestingly, post-2016 demonetization, the demand for digital payments and Rupay is increasing on a commensurate basis.

 

 

If you have liked the article, feel free to drop in your valuable feedback in the comments below. 

For more information refer:

https://www.bankbazaar.com/saving-schemes/all-that-you-need-to-know-about-rupay-debit-card.html

https://www.npci.org.in › product-overview › rupay-product-overview

https://www.rupay.co.in

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

Categories
digital payments fintech payment gateway

Everything you ever wanted to know about United Payment Interface (UPI)

Get answers to the most commonly asked questions on Unified Payments Interface

 

Launched in the year 2016, Unified Payments Interface is an instant, real-time payment settlement system in India. In the last three years, UPI has been anchoring the government’s digital revolution in India.

 

Recently, UPI crossed 1 billion transactions and added 100 million users for the month of October 2019. On a year on year basis, UPI transactions have increased by 135%. With 141 banks on the UPI platform, it is one of the sought after payment settlement systems in India.

UPI for payments
UPI for payments

 

In the course of this blog, let us try to understand some of the frequently asked questions concerning UPI.

 

1. What is the difference between UPI and IMPS?

A unified payment interface is a simplified version of an instant payment settlement system as compared to IMPS. UPI enables a user to make an online money transfer with only a virtual payment address. Hence, the long process of entering bank account, IFSC code, etc for IMPS is done away with.

2. Is UPI transaction free?

UPI transaction was free before April 1, 2019, for all banks. From April 1, 2019, Kotak Mahindra Bank is charging for UPI transactions. Users are charged after 30 peer to peer transactions/month. However, UPI payments via ICICI, SBI and HDFC platform continue to remain free.

3. Is card or wallet necessary for a UPI transaction?

No. Only bank account details are needed for UPI transactions.

4. Is it possible to have 2 UPI Ids?

Yes. It is possible to have up to ten UPI Ids linked to the same bank account.

5. What is the 2-factor authentication system in UPI?

It is the basic security feature of the UPI system. The 2-factor authentication system consists of verification using the M-PIN and the UPI ID.

6. Is mobile banking mandatory for UPI?

No, mobile banking is not necessary for UPI. The important requirements for UPI are Android phone and mobile number linked bank account.

7. Can UPI Id be changed?

Yes, you can change the UPI Id. You can obtain 2 more UPI Ids from the bank.

8. Is the UPI Id the same for all the UPI apps?

UPI Id is mobile-specific. One can create multiple email Ids linked to multiple mobile numbers. Hence, UPI Id remains the same for the same mobile number irrespective of the multiple UPI apps.

9. Does money transfer take place through UPI only during the banking hours?

No, money transactions take place through UPI 24*7.

10. Does the beneficiary need to register with UPI for receiving funds?

No, it is not necessary for the beneficiary to register with UPI for receiving funds. On the other hand, the only requirement for the beneficiary to receive funds is a mobile linked bank account.

11. How much time does UPI transfer take?

UPI transfer takes place instantly. 

12. In case of a change of UPI app, re-registration is required or can I use the same virtual address?

Re-registration is required in case of a change of the UPI app. One needs to just do mobile verification. The virtual address remains the same.

13. What are the different channels for transferring funds using UPI?

  1. Transfer through VPA
  2. Account Number + IFSC
  3. Mobile Number + MMID
  4. Aadhaar Number
  5. Collect / Pull money basis VPA

14. What is the limit of funds transfer with UPI?

The limit of funds transfer with UPI is 1 lakh with an upper limit of 10 transactions per day.

15. What is UPI 2.0?

Launched in Aug 2018, UPI 2.0 is an upgrade to the UPI system. The salient features of UPI 2.0 are the option of linking an overdraft account, setting of mandates, receiving an invoice in the inbox and provision for signed intent and QR.

 

For more information, refer:

  1. https://www.npci.org.in/upi-faq-s
  2. http://vikaspedia.in/e-governance/digital-payment/unified-payment-interface/upi-faqs
  3. https://www.dbs.com/digibank/in/banking/payments/upi/faqs.page

 

 

 

 

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

Categories
Entrepreneur Entrepreneurship fintech payment gateway startup Uncategorized

Innovative techniques for business growth

Tips and tricks to build your business with less investment

Started your own business but lost hopes on not seeing any growth? Capital investment, technology up-gradation, marketing, etc not paying any dividend? If so, you are missing out on some nitty-gritty of business growth.

Successful businesses try to replicate the good practices of their peers. They get the most simple thing right. For example, they make their websites more optimized and appealing. They have more community interaction and peer alliances.

Grow your business
Grow Your Business with these simple tips

In the course of this blog, I will walk you through some simple and inexpensive tips to grow your business. Some tips are very simple that it is often overlooked.

1. Social media visibility for business growth

Social media
Social media for business growth

Top companies have dedicated account on the prominent social media platforms like Facebook, LinkedIn, Twitter, etc. An appealing profile pic and header along with a concise bio provides you with more visitors. The more the number of clicks on your page, the more the chances of visibility of your business.

Secondly, regular posting of well-curated content works wonders. It acts as a credible portfolio for your business. The knowledgeable content on your platform gets the attention of top influencers in your field. This is the quick way to grow your business by leaps and bounds.

2. Regular blogs

Blogs for business growth
Blogs for business growth

Blogging is a significant yet powerful way to outreach your niche customers. It is an inexpensive way to get ranked on the Google SEO results. The regular the blogs, the more the chances of getting noticed on the web. In this way, the probability of your business content being shared increases.

Hence, the next time you get down to blog, think of the huge growth prospects that your words bring to the company.

3. Collaboration for business growth

Collaboration for business growth
Collaboration for business growth

Have you ever shied away from business alliances? Frightened of competition and plagiarism? It’s time to shed your inhibitions.

Successful businesses have learned and grown together. Joint business festivals and workshops help a long way in knowledge sharing. It brings in exposure to good practices. Also, it is a good opportunity to get noticed by successful peers in the industry. As they say, a good opportunity knocks your door unexpectedly.

4. Mobile-friendly website

Mobile friendly website for business growth
Mobile friendly website for business growth

How do you feel when a website takes a too long time to load? Frustrating isn’t it? Now, imagine yourself in the shoes of your customer. A customer will not wait for a long time to make an emergency payment. In these scenarios, it is necessary to have a mobile-friendly website that loads easily with minimal glitches. It is the last thing you want your customer to give negative feedback publicly.

5. Live chat facility

Live chat facility
Live chat facility for business growth

The growth of any business depends on customer satisfaction in the long run. In other words, a prompt and quick response is the best way to win the hearts of your customers. A live chat facility can work wonders. A real-time solution to their problems will bring in more satisfaction resulting in good brand image for your business. A positive review on a platform like Google will make your business high-ranked.

6. Inbound email marketing

Inbound email marketing
Inbound email marketing for business growth

It refers to the process of finding the right customers for your business through a focussed marketing strategy. It involves the scheduling and forwarding of emails customized for different categories of customers. In doing so, you can ensure the outreach to the right customers in your niche domain. It is one of the easiest ways for small businesses to grow online.

7. Community interaction for business growth

Community interaction
Community interaction for business growth

Businesses need new ideas to enhance their growth path. Being a part of a business community brings in value-addition to your business. As a business, you can learn from the plethora of questions posted online. Further, interaction with peer businesses online is a great way to build long-lasting relationships online. For example, Small Business Forum.net, Business Advice Forum, StartupNation Community, etc are some communities for small businesses online.

8. Event participation

Event participation
Event participation for business growth

How frequently do you participate in business events? Business events provide you with the opportunity to showcase your unique products to the business community. Further, it’s the best platform to interact with top-notch business magnates and get your business recognized. Probably, one of them will end up as an investor in your prospective startup.

9. Product innovation for business growth

Product innovation
Product innovation for business growth

It is one of the best ways to stand out in the business market. A unique and compelling product that stands out in the market will naturally have more takers. Further, it will also attract the best brains to your company. Hence, make sure that you continuously innovate to grow your business.

For more blogs, visit http://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

Categories
digital payments Entrepreneur Financial intermediary fintech Hybrid payment gateway payment gateway startup Uncategorized

Top seven startup laws in India

Be compliant with these basic laws to kickstart your startup

KPMG research shows that startups in India have seen a steady rise by seven times in the last decade. This is attributed to a slew of favorable government laws and initiatives in India. As a result, India’s image has grown by leaps and bounds as a startup-friendly country.

Hence, if you are an aspiring startup or a new startup, make sure that you comply with certain startup laws and regulations for the smooth running of your startup in India. Interestingly, India has a number of laws for startups ranging from contract laws, incorporation laws, patent laws, taxation laws, etc.

Startup laws in India
Know the nitty-gritties of startup laws in India

In this blog, I will talk about the core startup laws in India in a simplified fashion.

1. Limited Liability Partnership Act, 2008

Limited Liability Partnership Act, 2008 governs the formation of Limited liability partnership firms in India. Startups registered as LLPs have the flexibility of entering into contracts, hold properties, etc irrespective of the subsequent change in the partners involved.

Provisions of the Limited Liability Partnership Act, 2008:

  • LLP Agreement: It is not mandatory to have an LLP agreement. This reduces the technicalities involved, thereby easing the working of a startup.
  • Penalty: Violation of this Act results in a penalty of a maximum of five lakhs and a minimum of five thousand rupees.
  • Audits and accounts: Audit of accounts of the LLP is mandatory if turnover exceeds 40 lakhs or contribution by partner exceeds by 25 lakhs.

2. Companies Act, 2013

Companies Act, 2017 is the fundamental law for the formation, functioning, regulation, and dissolution of a company. It clearly sets out the responsibilities for different stakeholders of a company like directors, major shareholders, minor shareholders, etc.

Important provisions of Companies Act, 2013 are:

  • One person company: The new provision allows any company to be solely led by one person ( as both the director and the shareholder).
  • Shareholders: Maximum shareholders in a company could go up to a maximum of 200.
  • Women director: The Act provides for the mandatory appointment of a minimum of one woman board director.
  • Corporate Social responsibility: Every company which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the preceding three financial years on corporate social responsibility activities. 

3. Competition Act, 2002

Competition Act, 2002 governs the competitive activities of different organizations in the Indian market scenario. It ensures fair play in the Indian market by keeping a check on anti-competitive activities by the different players.

Key provisions of the Competition Act, 2002 are:

  • Competition Commission Of India: It is the central regulator for monitoring and keeping a check on anti-competitive practices in India.
  • Penalty: CCI can enforce a penalty of up to 1 lakh on any company for anti-competitive practices. 
  • Appeal: Appeal against CCI’s decision can be made by the aggrieved party within sixty days of the judgment in the Supreme Court of India.

4. Insolvency and Bankruptcy Code, 2016

Insolvency and Bankruptcy Code, 2016 aims to create a unified system for dispute resolution in India. It speeds up the dispute resolution process with the help of independent institutions and functionaries. In the past, dispute resolution in India was plagued by issues like red-tapism, organizational inefficiency, etc. Insolvency and Bankruptcy Code, 2016 intends to correct this loophole.

The provisions of Insolvency and Bankruptcy Code, 2016 are:

  • Dispute resolution time: Dispute resolution varies for corporates as well as individuals. The time frame is 180 days, extendable by 90 days for companies. For startups, the time frame is 90 days extendable by 45 days.
  • Dispute resolution request: Dispute resolution request can be put forth both by creditors as well as debtors.
  • Insolvency and Bankruptcy Board of India: IBBI is the insolvency regulator overseeing dispute resolution throughout the country. The board consists of 10 members including representatives from the Ministry of Finance, Law, and RBI.
  • Adjudicatory process: National Company Law Tribunal adjudicates in case of company and LLP firms. Individual and partnership firm related adjudication handled by Debt Recovery Tribunals.

5. Goods and Services Tax Act, 2016

GST Act aims to bring in a single, common taxation regime in the country by combining both central and state government taxes. It comes with the benefits of avoiding double taxation, lowering the prices of commodities and bringing in a competitive market.

Provisions of Goods and Services tax are:

  • GST slabs: The GST system currently has four slabs — 5%, 12%, 18%, and 28%. This simplifies the multiple taxes under the VAT system.
  • Central GST and State GST: Central GST to be levied and collected by the central government and State GST to be levied and collected by the state government.
  • Integrated GST: Integrated GST to be levied and collected by the Central government in case of inter-state transactions.
  • GST Council: GST Council is the governing body for revision of GST on a periodic basis.
  • Beneficial clause for Startups: By availing the input tax credit, startups can offset the regressive effects of the VAT system.

6. Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015

This act deals with the resolution of commercial disputes. Accordingly, commercial courts and commercial divisions of the high court can adjudicate on commercial disputes with a value of at least 3 lakhs.

It’s salient features include:

  • Commercial courts: Commercial courts to be established at the district level and also in the territories with the high court’s primary jurisdiction.
  • Commercial appellate courts: Commercial appellate courts are set up in the areas where original jurisdiction of the high court is non-applicable.
  • Mandatory mediation: Compulsory mediation provided in cases where there is no need for urgent relief.

7. Arbitration and Conciliation Act, 2015

Arbitration and Conciliation Act, 2015 deals with the arbitration of commercial disputes in an institutional fashion. Further, the act aims to make the arbitration process more cost-effective and client-friendly.

The salient features of the Arbitration and Conciliation Act, 2015 are:

  • Arbitral institutions: Supreme Court and High Courts to create arbitral institutions for dispute resolution, that can be directly approached by the parties for dispute resolution.
  • Arbitral award time: Arbitral award to be given within twelve months period, which could be extended by another six months.
  • Arbitration Council of India: Lays down norms for grading arbitral institutions and ensuring an environment of alternate dispute resolution (ADR).

For more blogs, visit http://blog.sabpaisa.in.

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

 

Categories
banking digital payments Financial intermediary fintech payment gateway startup Uncategorized

Frauds in online payments explained

Simple tips to avoid frauds

A study conducted by the Center for Strategy and International Studies (CSIS) & McAfee show that online fraud is equivalent to 0.8% of the world’s GDP. Most importantly, payment frauds form a major part of this figure.

Online payment frauds connote the illegal transaction by fraudulently acquiring the customer’s credentials. For example, it takes the form of credit/debit card fraud, data theft, friendly fraud, phishing, etc. Incidentally, the advance of technology has advanced the fraud involved as well. Also, fraudsters have devised complex techniques to come out with sophisticated frauds which are very difficult to detect.

Online payment frauds
Some time tested techniques to handle online frauds
Learn the simple tips for combating online payment frauds

In this blog, I will take you through some simple yet time-tested methods to tackle online payment frauds. As they say, prevention is always better than cure.

1. Data Theft frauds

This most common mode of online payment fraud involves stealing digital information of customers like banking account details, credit/debit card information, PIN, etc. For example, in 2017, 1 in 15 people had their identities stolen. Subsequently, the hacking of the credential holder’s account takes place with the stolen data. Further, data theft is also a result of employee negligence in handling an organization’s data. 

Data theft prevention techniques:

  • Regular malware check on the computer system.
  • Use of debit/credit card with pin-chip technology.
  • Frequent change of password every 1-2 months.
  • Regular installation of updated software on systems.
  • Ensuring a secure and protected wifi connection.
  • Do not respond to unauthorized and spam emails.

2. Phishing frauds

In Phishing, hackers camouflage as financial institutions and contact the target victims. In doing so, the various adopted modes are email, telephone, text, etc. For example, the potential target luring happens with fake offers, false email links, attachments and emails from unknown senders. Further, studies show that phishing accounts for 90% of all the data breaches.

Phishing frauds prevention techniques:

  • Use of email filters.
  • Change in browser settings. Do not autosave passwords for payment sites.
  • Timely fraud report to banks to ensure speedy action cum monitoring.
  • Keep a track of URL of links in an email. It is a potent outlet to fraudulent sites that steal user data.

3. Friendly fraud

Friendly fraud is one of the toughest fraud to detect. Herein, a customer makes an online payment and then disputes the purchase by contacting the credit card issuer. Going ahead, the fraudster is refunded while the fraud continues on different payment platforms. Studies show that friendly fraud increases at a rate of 41% every two years. It is on the rise due to the increasing presence of e-commerce companies. Moreover, it is very challenging to detect friendly fraud due to the favoring of customers by credit card companies.

Nevertheless, an estimate of friendly fraud is made by observing a larger than usual average transaction. Also, a high frequency of order coupled with a high amount of stolen orders suggests the presence of friendly fraud.

Friendly fraud prevention techniques:

  • Call recording to verify the veracity of the order.
  • Saving the product delivery information by confirming the signature verification.
  • Blacklisting of suspicious, fraudulent customers.
  • Building cordial relations with customers to maintain a positive brand image.
  • Interconnectivity with online payment peers to obtain updated information about fraudulent customers.

4. Triangulation fraud

This fraud primarily involves three parties involved in a transaction. Firstly, a customer places an order with an e-commerce site. Secondly, the e-commerce site is a fraudulent seller which takes the order and reorders on another website using stolen payment credentials. Lastly, the legitimate e-commerce website unsuspectingly processes the fraudulent order. For example, triangulation fraud is common in the trade of electronics appliances, pet supplies, tools, etc.

Triangulation fraud prevention techniques:

  • Keep a track of repeated product selling behavior of the retailer.
  • Connect with triangulation fraud victims to ascertain the fraud strategy
  • Be in touch with auctions/marketplaces that are known to host fraudulent sellers.

5. Refund fraud

Refund fraud occurs in a situation wherein a customer engages in the frequent return of ineligible items without any concrete reasons. For example, stolen or damaged goods are frequently returned. It often results in e-commerce sites hiking prices to recover the loss due to fraudulent returns.

Refund fraud prevention techniques:

  • Flagging customers resorting to frequent returns.
  • Stricter return policies like discouraging returns without a valid receipt.
  • Serial numbers on goods for verification.

On the whole, payment frauds are an inevitable part of transactions in a digital era. However, the tips and tricks mentioned above can be used to reduce it considerably, if not eliminate it. In addition, be well prepared for any unforeseen scenarios during online payments. Always, keep in touch with the concerned banking and regulatory authorities to safeguard your business and buyings.

For more blog posts, visit http://blog.sabpaisa.in

Categories
Blockchain & Crypto digital payments Financial intermediary fintech Hybrid payment gateway payment gateway

Digital payment trends of 2019

Digital payment modes to simplify our lives

Have you faced the challenge of making cash payments at the grocery store? Have you fumbled up due to the lack of cash? Not anymore, with the digital payment system in the offing. Significantly, the digital payment system is the buzzword in the contemporary payment market.

By definition, digital payment systems connote the electronic transfer of money, as opposed to the physical cash payment. This is through different modes like; payment via an app, net­banking, contactless cards, etc. Going
ahead, digital payment is the need of the hour in consonance with a lot of benefits. Of these, multiple payment options, payment tracking, safety, and security take priority.

Digital payment modes
Learn about the digital payment modes which simplified transactions.

In this blog, I will walk you through the sought after payment modes of 2019.

1. Digital payment using E­ Wallets

E­wallets connote virtual wallets used to make payments with the help of a mobile or a computer device. This isakin to holding the personal, physical wallet under one head. Herein, the account details of a user linked to the
wallet to bring in ease of mapping of a user’s personal information. It comes with security features like passwordauthentication, KYC check, etc.

Advantages of E­wallets

  • E­wallets do not require you to key in precise details like CVV, the expiry date of the card, mobile number,etc. With these added security features, payment fraud reduced.
  • The user interface of E­wallets is easy to navigate. You won’t experience the hassle of keying in personal details for payment.
  • In other words, the preloaded data facilitate easy payments. As a result, payment processing takes place in a quick and hassle­free manner.
  • Data secrecy happens through the wallet to a wallet or the bank to bank transactions. Hence, this complies with the data security clause of government organizations.
  • On a different plane, e­wallets come with financial incentives and offers. Going ahead, this provides a good return on investments on payment processing.

Disadvantages of E­wallets

  • While e­wallet is changing the face of payments, it is not affordable due to the lack of internet and mobile connectivity.
  • Besides, e­wallet set up requires costly investments in the form of software and hardware.

2. Digital payment using Contactless card payments

This digital payment mode makes use of near field communication (NFC) or Radio Frequency (RFID) technology to facilitate card cum mobile payments. It includes credit/debit cards, smart cards, etc.

On the one hand, Radiofrequency technology involves the use of electronic fields to store data in the form of tags. The tags scanned during a transaction results in payments. Similarly, Near field communication technique makes use of magnetic fields to bring in an end to end transaction connectivity. Some of the key contactless payment providers include Wirecard, SecureKey Technologies, Tyfone, Dynamics, etc.

Advantages of Contactless card payments

  • It brings in fast payment transaction and settlement. Also, NFC avoids the waiting time associated with contact card payments.
  • Due to the inbuilt data encryption, there is an added level of security.
  • It brings in the room for prospective innovation.

Disadvantages of Contactless card payments

  • The cards are propense malware attacks. So, this brings in a security risk.
  • Being an advanced payment mode, the payment option is costly which everyone cannot afford.
  • Since it is an advanced technology, very few merchants use this technology.

3. Digital payment using Payment Cards

This digital payment mode deals with electronic money transfers via cards like debit, credit, smart, etc. Besides,the cards are electronically linked to a customer’s bank accounts. The card authentication takes place with the help
of PIN, CVV, etc. Also, these cards are used at ATMs, POS machines and online payment platforms. The subsequent usage charges are very low.

The technologies associated with the cards are magnetic strip technology, embossing, and smart card technology. In a magnetic strip card, card data stored in the magnetic strip is read by swiping it. In a smart card, hologram and ICs bring about counterfeit prevention.

Advantages of Payment cards

  • Easy and convenient transactions by avoiding physical cash. Herein, transactions take place conveniently by using the inbuilt data present in the cards.
  • Payment cards have inbuilt payment tracking. With the credit history tracked, it keeps a check on taxation issues.
  • Besides, the cards come with offers as incentives for online payments. Hence, this creates a favorable payment environment in the long run.

Disadvantages of Payment cards

  • Payment cards create a culture of debt accumulation. For example, with credit card purchases the repayment happens with the added interest rate.
  • Also, the increasing debit/credit card frauds compromise with the precious personal data of users.

In a nutshell, choose the payment platform which best suits your business requirements. While E­wallets are common amongst small e­commerce players, a contactless card is the upcoming payment trend. Besides,
debit/credit cards support a variety of customer base. Hence, digital payment modes are fast changing the face of payments across the world.

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