Presently, technology has made the world go ’round. Safe, convenient, reliable, and easy to use – it permeates all aspects of our lives, including payments. Gone are the days when cash was the only king, especially after the emergence and rise of the digital payment revolution and mobile business.
In simple terms, digital payments are financial transactions wherein cash or a cheque does not have to be exchanged. Digital payments can occur through any payment app for business and several methods and are used in numerous industries, such as credit unions, collection agencies, e-commerce stores, etc.
Digital payment consists of online transactions and offline payments made at salons or physical stores. For instance, payments made via UPI to the grocery store or even at a salon qualify for digital payment.
Also, there is a payment bank, which is similar to any other bank, but functioning on a comparatively small scale and not having credit risk. However, it can carry out a majority of banking operations except for issuing credit cards or advancing loans.
Types of Digital Payments:
There are several modes of payments, such as QR, USSD, AEPS, UPI, Mobile Wallets, PoS terminals, Internet banking, Mobile Banking, Electronic Clearing Services, Overdraft, etc., the most common and widely used being debit or credit card payments, and payments made via mobile apps.
The functioning of Digital Payments:
Whether low-risk or high-risk, all successful digital payments include two parties – the customer and the merchant. To process a digital payment, any business must have a merchant account, facilitating the online payment process.
Main Benefits of Digital Payments:
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Improved Efficiency:
Through digital payments, businesses can easily make and get payments promptly and efficiently. This can diminish accounting and administrative expenses and enhance the organization’s efficiency.
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Increased Customer Service:
Digital payments can allow businesses to offer a much better and smoother customer experience by providing them with more convenient and quicker payment alternatives, which can facilitate enhanced customer satisfaction and loyalty.
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Decreased fraud risk:
Digital payments can reduce fraud risk by giving businesses a safer, more secure, and more efficient payment mode. This can help them in saving money and maintaining their reputation.
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Improved sales:
Digital payments can allow businesses to improve their sales by offering customers more convenient payment options. This can, in turn, lead to increased financial stability and growth.
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Efficient security:
Online payments come with greater security by giving out more secure payment options, which can let businesses stay away and be protected from financial losses and fraud.
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Increased privacy:
Digital payments allow businesses to increase customer privacy by providing more safe and secure payment options, which can increase customer retention and loyalty.
To get started with making payments online, there is a wide variety of applications such as yono Business for catering to all your general corporate banking requirements.
On a concluding note, the number and frequency of making digital payments are exponentially rising as people become more financially literate and have more financial accessibility. Customers worldwide traditionally wished for local payment modes today, tomorrow, and in the future. However, businesses that wish to capture a slice of this market must also provide them with the above payment modes.