What is Digital Payment?
Any payment that takes place electronically through online/digital mode is called digital payment. It eliminates the need for the physical exchange of funds.
The famous digital payment modes are banking cards, UPI, mobile wallets, PoS sales, internet, and mobile banking.
The UPI has reached the milestone of $1 trillion in transaction value, becoming the most preferred mode.
Some interesting facts about digital payments
– The first credit card was launched in India by Andhra Bank in 1981.
– Electronic banking was introduced by the Industrial Credit and Investment Corporation of India (ICICI) in 1996.
– Online banking was introduced by HDFC, IndusInd, and Citibank in 1999
– PoS terminals were fully integrated into the Indian financial ecosystem in 2016.
– No cash management implies reduced theft risks and security costs.
– Shorter queues and enhanced customer experience result from digital payments. Thus, ease and convenience drive sales.
– Accounting and tax compliance are simplified thanks to a clear trail.
– Better financial inclusion and economic progress.
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