6 Best Digital Payments System in India

Digital India is now a reality, and the government is doing its bit to promote cashless transactions all over the country. But what are the different methods of digital payments in action right now? Let’s take a look at the top 6 types of payments in this blog.

Card Payments

Banking cards are the most frequently used mode for cashless transactions as it is more secure and convenient. Any person not really keen on technology can use this mode as it is easier to implement from a technical point of aspect. Some well-known card payment systems include Visa, Maestro and Rupay.

How to get a banking card? Well, first all you need to do is provide your KYC details to the bank. Then apply for a card by filling out a necessary form. Within a span of a few days, you will receive your card with a secret PIN. You can use that PIN to make cashless payments with your card anywhere around the world.

USSD Payment System

Unstructured Supplementary Service Data (USSD) is another popular mode of digital transactions. Here you don’t need an app or a mobile internet connection. You don’t even need a smartphone for this method as it runs the same on small display keypad phones. This mode of digital payment is backed up by National Payments Corporation of India. It was introduced with an initiative to introduce digital payment to the under-served parts of our society. Features associated with USSD are:

• Getting balance information.
• Bank statement information.
• Initiating fund transfers.

How to use this feature? It is as easy as dialling a number on your phone. Dial *99# on your bank registered mobile number, and that pulls out an interactive voice menu. Following this, you have to register for MPIN, USSD and MNID and you are good to go.

Aadhaar Enabled Payment System(AEPS)

If you have your aadhaar linked with your bank, then your life gets a lot easier as far as bank transactions are concerned. Almost all bank transactions including a balance enquiry, fund transfer, cash withdrawal, etc. no longer require you to go to the bank physically. You don’t even need a banking card like a credit or debit card for this feature to work. You registered aadhaar number is the last thing you need to remember, and you are all set. For AEPS transactions just enter your registered aadhaar number on the payment page and it will go through.

Bharat QR Code

Bharat QR is a QR based payment system which can be used to accept or make payments. This payment system is developed by NPCI in association with Mastercard, VISA, Amex and Rupay. It reduces the usage of card swiping devices for payment. A customer has to use their Bharat QR enable banking app to make payments. They have to scan the QR Code available at the merchant store to pay the amount.

Unified Payment Interface(UPI)

Unified Payment Interface is something any person with a bank account and a smartphone can use. For this mode to work, you need a UPI based App. There are a bunch of UPI based apps on the apple app store, windows store and google play store. Depending upon your convenience use the app that is more user-friendly for you. You can link multiple bank accounts to a single app, and you no longer need to remember your IFSC code or account number. The only thing you will need now is the VPA (Virtual Payment Address). However for this service to be initiated, you still need a valid mobile number registered with your account.

One of the main advantages of UPI is charge-less transactions. You can send any amount of money to anyone and even receive from them the same without any sort of extra charge.

Just register your bank account on the app, and get your VPA and MPIN to begin your transactions thereafter.

Mobile Wallets

Mobile Wallets have been around for a few years, and almost everybody is now familiar with it. They are like the confidential middle-man containing your CVV number and other details securely in one place. Transfer money from your bank account to your wallet and continue with using your hassle-free wallets. The advantage of this mode is that it is very popular and is accepted as a mode of payment by almost everybody. Be it merchants, government services or private companies; everybody accepts payments from wallets. Some popular ones are Paytm, Freecharge, Mobikwik, etc.