Digital India finds a true reflection in the upsurge in mobile payments during the last few years. Events like demonetization, the ongoing pandemic-induced lockdown, and social distancing norms have catalyzed the Indian payments scenario beyond recognition. As a result, digital payments have grown five-fold within the last four years alone, and the trend continues unabated. Today, you have mobile payment apps allowing a fast checkout for purchases wherever, whenever, and whatever. Keep reading to dig into mobile payments.
A Walkthrough Mobile Payments Ecosystem
Mobile payment is an online transaction using a mobile device application for solutions and services. It is a qualitative and quantitative jump from the eCommerce and shopping platforms designed for desktops or laptops to engineer peer-to-peer bank transfer and digital payments through wallets, QR Codes, payment links, etc.
Mobile payments’ overwhelming presence in the challenging digital payment market ensures a seamless, secure, and convenient checkout with just a click. However, the in-between payment gateway service facilitates mobile payment from the consumer to the merchant. In addition, service providers like Zaakpay integrate payments into the mobile application to streamline the process.
Exploring the Mobile Payments Ecosphere
The Indian payment industry is bolstered by one billion cards and two billion prepaid instruments like internet wallets, mobile wallets, mobile accounts, and digital payments to catapult the country into the fastest-growing digital payments market. So, let us delve deeper into the contactless, remote, or face-to-face instruments that engineered the sea change.
- Mobile Wallet: A mobile wallet is a mobile device application that stores card and linked bank account information to pay on demand. The system of tokenization has been devised to ensure sensitive data integrity. The safely stored data is in the form of tokens which are randomly generated alphanumeric strings replacing the card numbers. The most popular mobile wallets use POS (Point of Sale) devices enabled with NFC (Near Field Communication) technology for contactless payments.
- QR Code Payments: The Quick Response or the QR Code-based payment has of late emerged as the most preferred in-store online transaction. All you need to do to put the transaction through is open the app on your smartphone and scan the merchant’s QR code, confirm the price, and tap to pay. Merchants and consumers find QR Code enabled systems easy to set up and a reliable payment mode. In addition, the merchant saves on maintenance and overheads for an instant on-the-spot payment facility.
- Remote Payments: The pandemic has opened up alternative routes for digital payments, where face-to-face interaction is taboo during the lockdowns, and social distancing protocols are in force. Nevertheless, businesses find it worthy of switching to these payment modes.
- Internet Payment: The oldest form of browser payment services, widespread among consumers who cannot do with an internet device. However, they are slower than mobile payments, the favored online payment tool, as you must enter the complete card details to transact.
- Payment Links: When mobile devices have replaced laptops and desktops, internet payments are passé and have evolved into payment links where the merchant transmits it to the customer requesting payment. Of course, the merchant must integrate the payment acceptance by engaging Zaakpay like service providers. You have to click on the payment link to pay.
- Mobile Banking: As the smartphone gets more and more feature-driven, it was only a matter of time before internet banking evolved into a friendlier Mobile Banking App. The bank-specific application is loaded with features for banking transactions freely round-the-clock. Apart from the routine banking transactions, you can remit funds at will through the app.
- Mobile POS: The MPOS, popularly known, is the sleeker version of the bulky POS Terminals we were used to in-store. It is a hand-held POS device performing wireless transactions relying on various technologies for mobile payments like the popular NFC. For example, the Near Field Communication enabled phones to communicate with the NFC terminals using proximity radiofrequency for an instant, contactless payment solution.
Know About the Unique Mobile Payment Features
The pandemic has caused an exponential spurt in mobile payments, boosting it to stratospheric heights, and the trend continues. No wonder an array of unique features have propelled its popular perceptions. More so, delivering a simplified online transactions module benefits both the customers and merchants alike. Here is how it happens:
- Seamless Transaction: Whatever the chosen mobile payment option, you are assured of a seamless experience for its simplicity-laced swift, secure, and smooth execution. The saved card and account information provides the payment link for repeated use.
- Convenience: Mobile payments are designed for ease of use, avoiding complicated maneuvers for online transactions. It is quickly completed with a few clicks at most.
- Interactive User Interface: The mobile payment’s interactive user interface encourages engagement to boost sales.
- Technology Integration: Integration with the latest technology like the cloud enhances the system’s efficiency manifold.
- Data Analysis: Mobile payments facilitate seamless online transactions and use the captured data for invoicing and analysis to help the business grow.
What Does the Mobile Payment Future Portend?
According to the 2021 Indian Mobile Payments Market Report, mobile payments have surpassed card payments amidst the pandemic as more and more merchants and consumers embrace digital payments. RBI is pushing to create about three million digital payment touch-points annually for three years from January 2021 through the Payments Infrastructure Development Fund Scheme in this backdrop.
RBI’s recent decision to allow offline digital payments up to Rs.200 using cards, wallets, and mobiles is designed to encourage innovative digital payment solutions without active internet connectivity. The move will effectively eliminate the second-factor authentication leading to the SIM-overlay-enabled payment options. The proposed trajectory in the digital payments ecosystem aims for the last-mile digital payment solutions delivery in India’s countryside.
The shopping experience has been revolutionized, and mobile payments have dominated the digital payment space, despite the pandemic constraints. The outcome of an integrated payment gateway into the mobile app is an uncomplicated payment process. Today, the figure speaks for itself – in 2021, 73% of consumers made online purchases using a mobile. Several RBI initiatives are designed to harness the potential of turning India into a digital payment hub.