Mobile wallets: The definitive guideJan 09,2023
If you’re running a new-age e-commerce or retail business, you’ll want to pay close attention to this article. Mobile wallets have become...
Even though Digital Payment methods were doing the rounds for quite some time in India, the real driving force for making a shift towards Digital Payments came during demonetisation when cash became insufficient. Since then Digital Payment solutions in India have consistently seen an upward trajectory with a rapidly growing market share.
In the market today, customers can choose from a wide range of Digital Payment solutions. However, UPI (Unified Payments Interface) has managed to capture the lion's share. UPI Payment solutions partnered with banks have become the most trusted payment mode of choice across the country.
In the UPI Payment system, all of your bank accounts can be merged into one mobile application, uniting numerous bank features, merchant payments, and efficient fund routing.
A report by CLSA highlights that UPI makes for 60% of total payments by volume and Digital Payments have seen a growth from $61 Billion in FY16 to $300 Billion as of FY21. The increasing online purchases and digital adoption allowed it to grow. Some of the UPI Payment system's unique features include the following:
Another option that has recently joined the Digital Payment race is e-RUPI. e-RUPI launched by the RBI (Reserve Bank of India) is the digital version of the Indian currency, the Rupee. It can be used exactly like cash including being withdrawn from banks, stored in mobile wallets, and spent anywhere without the dependence on a bank server to process the payment.
The users of the seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the merchants accepting e-RUPI. The contactless e-RUPI is easy, safe and secure as it keeps the details of the beneficiaries completely confidential. The entire transaction process through this voucher is relatively faster and at the same time reliable, as the required amount is already stored in the voucher.
RBI expects this digital currency to do exceptionally well because of the following reasons:
• Unlike the UPI Payment mode, the e-RUPI does not require an individual handler or a bank to process the payment. According to the RBI, this will make e-RUPI even more hassle-free, fast, and reliable compared to UPI.
• e-RUPI also comes with the perks of anonymity. Similar to cash, e-RUPI doesn't leave a trail of transactional details with the partner banks or handlers like UPI.
• It provides complete anonymity post with its withdrawal from the bank and thus provides greater privacy while storing in mobile wallets and while spending thereafter.
• UPI Payment has expanded abroad. NIPL (the international wing of NPCI or National Payments Corporation of India) is working ceaselessly to enhance the global acceptance of UPI with unprecedented success. They are doing their best to ensure the vision of creating UPI as the default mode of payment for Indians at home and abroad.
Worldline India provides a one-stop solution for all payment needs ranging from in-store payments, issuance and acquiring solutions, online payments, and omnichannel payments. Whether one requires a personalised suite of payment solutions for BFSI sector needs, or to accelerate an e-commerce business with a seamless checkout experience, or a customised solution for any sector, Worldline has a wide range of Digital Payment solutions to enable the best payments experience for your customers.