Google Pay, Paytm and PhonePe, among many others. Digital payments have skyrocketed in India, with almost every single store in the country accepting and receiving substantial sales through digital payments. Compounded with bank account applications and easy retrieval and deposits, the financial world has succumbed to digitalisation- it is known as Fintech in this particular industry(financial technology).
Further stimulated by the infamous covid-19 pandemic, digital payments have swept the nation, and will become increasingly significant in our day-to-day transactions. Not just digital payments, but the entire concept of cashless and contactless payment have created a new framework for consumption and transaction.
As a result of the pandemic, traditional payment methods, such as cash and credit cards, are predicted to become increasingly obsolete, with contactless payment becoming more pertinent and user-friendly.
Juniper Research have conducted a study, in which they predict a trend favouring digital payment; the number of digital wallet users is on track to surpass 4.4 billion people by 2025. This is astounding; around half the world's population will be paying for something as simple as their groceries digitally.
This acceleration calls upon fintech companies to level up their platforms: as is commonly stated about the business market, it is the survival of the fittest. These companies will want to be the first in the industry to provide users everything they want, and more, to ensure that digital payment is as easy as ABC; a couple clicks and you can walk out the store with your supplies!
One particular company, known as Venmo, has introduced something that would have been unthinkable in previous generations: voice payment. Yes. Peer-to-peer transactions wherein one simply voices out a command on a mobile banking application, and you’ve bought your product. Phenomenal.
Similarly, digital payment methods can be linked to various other applications; you could be pizza on the Domino's App with Amazon Pay, or purchase cryptocurrency digitally through GooglePay. The opportunities are endless, and the trend will accelerate as the demand for digital payment grows at an unbelievable rate.
As mentioned, fintech firms will need to continually and tirelessly up their game; the need for speed, ease and efficiency continues to blossom, and firms situated in the best possible position that have the experience to deal in these high-speed markets will succeed. It has almost become a necessity that firms incorporate a form of digital payment on their websites/applications for transactions: if not, it is as easy as a click of a couple of buttons to move to the next competitor. Survival of the fittest.
Written and collated by Aman Farooq