DIGITAL PAYMENT REVOLUTION IN IND

INTRODUCTION TO DIGITAL PAYMENT

• A digital payment, sometimes called an electronic payment, is the transfer of value from one
payment account to another using a digital device or channel. This definition may include
payments made with bank transfers, mobile money, QR codes, and payment instruments such as
credit, debit, and prepaid cards.
• After the launch of Cashless India, we currently have ten methods of digital payment available
in India. Some methods have been in use for more than a decade, some have become popular
recently, and others are relatively new.
 EVOLUTION OF DIGITAL PAYMENT
• Traditional payment methods like cash and cheques are gradually being replaced by more
convenient and secure digital alternatives. This transformation has extended financial inclusion
to millions of previously underserved individuals, empowering them with access to banking
services.
• In the 1910s, the Federal Reserve of America began to use the telegraph for money transfers. In
1950, the first independent credit card company was established by the Diner’s Club, soon
followed by the Bank of America introducing the first modern-day bank credit card in 1958. As
people became more reliant on computers for buying, the Automated Clearing House (ACH)
was invented in 1972 to batch process large volumes of transactions.
KEY
COMPONENTS OF
DIGITAL
PAYMENT
1. BANKING CARDS
2. UPI
3. CONCATLESS PAYMENT
4. MOBILE TRANSFER
5. BANK TRANSFER
ADVANTAGES OF DIGITAL PAYMENTS
1. Speed of transactions
2. Convenience
3. Low transaction costs
4. Quick and easy setup
5. Reaching global audience
6. Variety of payment choices
7. Availability of more distribution channels
 ENTREPRENEURSHIP IN DIGITAL PAYMNENT

• Digital entrepreneurs rely on digital technologies to establish and run their businesses. They set up online
storefronts to sell their goods, use social media platforms such as Facebook to advertise, and monitor
customer trends using tools such as Google Analytics.
• To realize growth and innovation, the ecosystem must function well for entrepreneurs. Such an
“entrepreneurial ecosystem” is an interactive network of actors who influence each other and the chances
of survival of a venture creator and his company in a region or country.
• A sustainable “Digital Entrepreneurial Ecosystem” is one in which (1) user privacy is protected; (2)
platform efficiency enhanced by third-party agents; (3) market competition is not stifled by platforms;
(4) security of digital infrastructure ensured.
 CHALLENGES OF
DIGITAL PAYMENT

• Security concerns
• Lack of trust
• Limited digital infrastructure

• Interoperability
• Regulatory challenges
 OPPURTUNITIES OF
DIGITAL PAYMENT
• Increased adoption in rural areas
• Integration with e-commerce
• Adoption of new payment technologies
• Expansion into international markets
• Collaboration with traditional financial institutions
 ROLE OF GOVERNMENT
• The Government of India has been undertaking several measures to promote and encourage
digital payments in the country. As part of the ‘Digital India’ campaign, the government has an
aim to create a ‘digitally empowered’ economy that is ‘Faceless, Paperless, Cashless’. There are
various types and methods of digital payments.
• According to a report in ET, In India, 66.6 billion transactions worth $270.7 billion are expected
to shift from cash to cards and digital payments by 2023.
• The government has also launched several initiatives to promote the use of digital payments in
rural areas, including the launch of the Common Service Centers (CSCs), which provide digital
services to citizens in rural areas.
 ESSENTIAL COMPONENTS OF FINANCIAL
INCLUSION

• Digital transactional platforms

• Devices
• Retail agents
• Additional financial services via the digital transactional platform
 INTERNATIONAL TRENDS DIGITAL PAYMENT

• DOMINANCE OF MOBILE WALLETS

• DIGITAL CURRENCIES
• SMART SPEAKER PAYMENTS
• SEAMLESS PAYMENT
• SECURITY LEARNING THROUGH AI AND MACHINE LEARNING
• MORE ABOUT BNPL
 COLLABORATION AND PARTNERSHIP

• IDENTITY COMMON GOALS AND CHALLENGES

• ESTABLISH CLEAR ROLES AND RESPONSIBILITY
• CREATE PLATFORMS AND FORUMS FOR DIALOGUE AND EXCHANGE
• PROMOTE MUTUAL LEARNING AND FEEDBACK LOOPS
• CELEBRATE SUCCESSESS AND RECOGNIZE CONTRIBUTION
• ENCOURAGE CONTINOUS IMPROVEMENT AND ADAPTATION
CASE STUDY: ENTREPRENEURS IN DIGITAL
PAYMENT
• The Challenge of Cash in Rural India
• Imagine a bustling Kirana in a remote village
• Meet Ramesh, owner, limited by cash, small customer
base, restricted by cash dependence.
• Security risks, carrying large amounts and fearing theft.
• No access to finance, stuck without a formal financial
record.
PRIYA'S DIGITAL SPARK: UPI
EMPOWERS RAMESH
• Enter Priya, Ramesh's tech-savvy daughter studying in the city.
She saw the limitations of cash and introduced UPI (Unified
Payments Interface) to her father's Kirana.
• UPI, with its simple QR code scan and instant transfers,
promised convenience, security, and a gateway to a digital
world
• But convincing villagers, accustomed to cash for
generations, wasn't easy.
OVERCOMING HESITATION AND
EMBRACING CHANGE

• Priya and Ramesh launched an awareness campaign, explaining UPI's

benefits and offering discounts for digital transactions.
• They faced initial resistance, skepticism, and even fear of technology.
But their persistence slowly paid off.
• The COVID-19 pandemic proved to be a turning point. With social
distancing and hygiene concerns, UPI emerged as a safe and hygienic
alternative to cash.
DIGITAL TRIUMPH: GROWTH,
PROSPERITY, AND EMPOWERMENT

• : Ramesh's Kirana witnessed a digital revolution:

• Increased sales: UPI attracted new customers,
especially tech-savvy youth, boosting his income.
• Financial security: No more worries about carrying
cash or counterfeit notes.
• Access to credit: A digital transaction history paved
the way for Ramesh to secure a small business loan.
KEY TAKEAWAYS AND BROADER
IMPACT

• Ramesh's story is a testament to the power of digital payments in rural

India. It highlights:
• Technology adoption: Embracing new technologies unlocks new
opportunities and growth.
• Financial inclusion: UPI empowers individuals and businesses,
fostering a more inclusive economy.
• Role of young changemakers: Young people like Priya bridge the
digital divide and drive progress.
CALL TO ACTION AND THE FUTURE
OF RURAL INDIA

• Let's be inspired by Ramesh's journey and contribute to a digitally

empowered rural India.
• Advocate for UPI awareness and access in your communities.
• Embrace technology as a tool for progress and financial well-being
Remember, Ramesh's Kirana is not just a shop. It's a symbol of hope, showcasing
how digital payments can transform lives and unlock the immense potential of
rural India.