Effect Of Cashless Payment Methods: A Case Study Perspective Analysis

Abstract: The Digital India scheme is a showcase scheme of the Government of India with a keen to convert India into a digitally empowered companionship and cognizance thriftiness. “Faceless, Paperless, Cashless” is one of professed party of Digital India. The digital payment system day by day rising with interlink between banks and financial institution movement from cash to cashless system. Present government (Narendra Modi) is pushing the people to go forward towards cashless transaction, it will helps to government to achieve the economical growth in India. In this case study research tries to find the impact of digital payment apps and its impact after demonetization.

INTRODUCTION

India is moving on the path of a major digital revolution. Digitalization of the payment mechanism will be considered as a milestone in the era of cashless future economy. The growth of the Indian digital payments space is expected to be driven by four trends that are also likely to impact how this industry looks in the future. India going digital, favorable regulatory environment, emergence of next generation payment service providers and enhanced customer experience are the four drivers contributed to the growth of Indian digital payment systems. A cashless payment is a situation in which the financial transactions are made by digital currencies. In India, too much of transactions are made through cash. Less than 5 percent of total payments happen through electronically. Illiterate people don’t know how to use digital transactions. Financial literacy and awareness about cash less transactions are paramount in India to make the cashless economy. Nearly 26% of India has internet access, and total transaction value in the digital payments amount to US$ 51.756 million in 2018. Banks and financial institutions offering discounts on purchase with credit/ debit cards and online wallets offering attractive deals for payments have made Indians comfortable with paperless transactions. The cashless transaction is a new application of mobile payment that has functionality to displace a conventional wallet and more. Mobile payments are a top investment priority for banks. In fact, the world’s biggest banks continue to focus most of their announced IT initiatives on mobile financial services (including payments) and online banking.

IMPORTANCE OF THE STUDY

The cashless transaction is one of the most important concepts now-a-days, Prospects for Cashless Economy in India. Around 5% of fund transactions in India are driven by the use of mobile wallets and electronic payment system. The main advantages of cashless transactions are that the digital transactions ensure recording of all economic transactions. Digitalization means makes it almost possible to control black money markets which often prove damaging to national economics. It helps increase the tax income of the government. The advantages to citizens of a county in a cashless economy are risk of carrying currency notes and loss of hard earned money can be avoided. Transaction costs, making the payment and time consumption will be reducing. Cashless transaction is convenient for shopping, payment of bills and scheduling of financial transactions managed from home, office or wherever with a smart phone. It also reduces expenditure of printing of currency notes and its transportation.

STATEMENT OF THE PROBLEM

India is in the second position in the world in population. Still Indian economy is developing economy in the world. So the government of India taking some initiative to develop our economy, our honourable prime minister introduces the digital India for adopting the technology and maintains all transactions should be digital transactions in our country. In order to accelerate the execution of the concept of digital economy there are number of digital payment systems introduced. These payment systems can make changes in the standard of living of people. In India, many cashless payments systems were launched such as E-Payments, online payments IMPS, NEFT and mobile wallets etc… In this research the researcher article indicates that various cashless payments through in India and its impact of after demonization.

OBJECTIVES OF THE STUDY

1. To examine various methods of cashless payments in the Indian economic development.
2. To know the importance of the cashless transaction system.
3. To analyse the pros and cons of cashless transaction system

TYPES OF DIGITAL PAYMENT METHODS IN INDIA

1. Banking cards
2. Aadhaar Enabled Payment System (AEPS)
3. UPI
4. Mobile Wallets
5. Bank pre-paid cards
6. Point of Sale (PoS)
7. Internet Banking
8. Mobile Banking
9. Bharat Interface for Money (BHIM) app

Advantages of Cashless Payments

More Comfortable:
Cashless payment is helps to make quick payment process and no need to wait in queue and fill all information and signature. At the same time not required to wait in a line to withdraw the cash from ATM Machine or not required to take the cards in wallets. Now moving to digital, banking services is available to customers on a 24/7 basis and on all days of a year, including bank holidays. Many services like digital wallets, UPI, etc,
 Low Cost:
There are many payment apps and mobile wallets that do not charge any kind of service fee or processing fee for the service provided. The UPI interface is one such example, where services can be utilized by the customer free of cost. Various digital payments systems are bringing down costs.
 Waivers, discounts and cash backs:
There are many rewards and discounts offered to customers using digital payment apps and mobile wallets. There are attractive cash back offers given by many digital payment banks. This comes as boon to customers and also acts a motivational factor to go cashless.
 Record of Digital Money:
One of the other benefits of going digital is that all transaction records can be maintained. Customers can track each and every transaction that is made, no matter how small the transaction amount this.

Disadvantages of Cashless Payments

Security issues
In digital transaction confirm that while making any transaction is highly secured one because someone may hack of your details. Threats and virus is most dangers one to affect this transaction, and also don’t share your password to anyone.
 Internet link
Internet connection is most required to do all digital payment methods. This internet connects banks for making the payments. While purchasing the goods in online (E-Commerce) internet mostly required. Even without internet we can use certain apps to make the payments.
 Costly
While assembly and trade are gift their customers so much of discounts on the tackle of things through digital gold, there are several covert costs inclination sustain servers, data storing cost, the demand of coach which are really load strong cash oppress on them intelligently.
 Data management
While doing the transaction we have share our account, card details and personal detail to the third party. The third party must ensure that don’t share our data to someone else, if they shared to somebody in that moment the risk level is more. So the data management is most important one

Conclusion

The usage of digital payment apps day by day getting more familiarity in our country with 440 percentages increased after demonetarization in 2016. As per Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI), the cashless transactions had been more intensive in familiar channels such as NEFT, Mobile Wallets, Mobile Banking, BHIM, Banking Cards and Internet Banking etc... internet, Mobile, Android and Ios is most required for each digital payment apps to do any transactions. In recent days’ the number of users has been increasing day by day with more number of young and adults, particularly the usage of digital payment apps by student and employees who is working under government and private sector. in overall all the digital payment apps is most benefit to the users in terms of quick payment, avoiding to carry physical cash, save time, high secured payment, getting discounts and offer, easy recharge and green payment system etc...Hence the posture of Indian citizens is shift which is preference a excellent begin-up for cashless or less coin based economy. This will induce India towards more digital and developed economy in India.

---