Rise of Digital Payments App Transactions in India

The flagship program of Digital India by the Government of India was initiated with the intent of a transformed India. A country empowered digitally with a knowledge economy is what the aim signifies. Digital India program’s role is to promote and ensure ‘Paperless and Cashless’ India. India is currently experiencing a thrilling transformation with digitization as the focal point. The digital transformation in India is driven by the evident technological penetration and policy framework. One of the most crucial and successful transformations can be witnessed in the system of digital payment.

With the changing lifestyle and dependence on the Internet, the Indian population is engrossing their attention in digital transactions. The trends of digital payment systems are exponentially growing with the contribution of changing customer expectations as well as with the entrance of giants in the battlefield for offering rewards, offers, and cashback for promoting their payment platforms. Digital payment applications offer a seamless procedure of saving, spending, and making transactional decisions. Moreover, the COVID-19 pandemic has evolved the use of digital wallets in India due to the shifting shopping patterns of the population. In India by the year 2025, digital payments are anticipated to rise 71.7 percent on all transactions.

Top Digital Payment Mobile Applications in India

  • Paytm
  • Google Pay
  •  Amazon Pay
  •  PhonePe
  •  MobiKwik
  •  BHIM UPI

Positive Implications of Digital Payment Applications in India

Let us understand the benefits and disadvantages gained from acceptance of digital payments applications:

Transparency with technological transformation: The unlawful activities and the scope of mismanagement of transactional records can be controlled with the use of digital payment applications.

Boosts e-commerce businesses: Digital payment applications are the biggest driver for the rising e-commerce sector in our country.

Easier to operate: The basic feature, which makes the acceptance of digital payment applications popular are time-saving and nature of being hassle-free. Juggling through cards and cash in the wallet can be replaced with a single platform, where users can perform all the day-to-day transactional activities through a mobile application. You just need your smartphone and registered bank account details. Easier operation of the payment apps allows the economic state of India to take a step towards financial inclusivity where both privileged and unprivileged populations can be equipped with the advantages.

Opportunities for the corporates: Every industry in India is investing in the association with leading digital payment applications, especially businesses operating on online platforms. The iGaming sector can be a perfect instance, which partners with top digital payment apps for ensuring safer and coherent transactional processes. The assurance of renowned digital apps like, Google Pay, PhonePe, and Paytm ensures trust amongst the players. Players can play card games like Teen Patti using Paytm as their mode of transaction.

24×7 Banking Services: The digital payment applications acts as a third party for enabling transactional activities anywhere, anytime, and for everyone. The provision of 24×7 services benefits the Indian population in emergency situations.

 Factors affecting the adoption of Digital Payment Applications 

 Smartphone Penetration and expansion of Internet users: The exponential surge in smartphone penetration in both urban and rural India, especially with the initiative of Digital India, the awareness regarding online payment applications is increasing. The total number of Internet users in India as per the data of 2021 is 761.29 million.

  • COVID-19 pandemic: Although the people around the world are witnessing prominent struggles from the global pandemic but with the instructions on restrictions, the usage of digital payment apps amongst the Indian population increased exponentially as a response to the risk of physical contact.
  • Popularity of gaming industry: The iGaming industry in India has witnessed a positive surge with the pandemic hitting the country, due to the lack of outdoor activities. A huge population is engrossed in their free time, money, and attention towards playing casino games and in sports betting, especially for the IPL 2021 season. With the surge of online gambling, the adaptation of digital payment applications is rising.
  • Investment in technological advancements: FinTech companies are investing in technological advancements for seamlessly integrating digital payment applications with features like face and voice recognition.
  • NPCI’s Ban on gaming transactions under ₹50: For handling the huge surge in online transactions especially due to the increasing online gaming market as it may have affected the banking system with huge volumes. This initiative can negatively affect the acceptance of digital payment applications, specifically in online gaming websites as the majority of the players make smaller payments or smaller bets for games and sports online.
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