With more than 61% internet penetration, India is well on its way to become one of the world’s largest and fastest-growing digital economy. Several government initiatives like Digital India Mission and the national biometric digital identity program, have played a major role in bridging the divide among India’s diverse population. Therefore, on the occasion of ‘Digital payments awareness week’ by RBI, let us have a look at some of the key reasons to prefer digital payments over cash transactions.
The foremost reason to shift towards digital payments is the ease it brings to life. Digital payments offer convenience and choice to consumers as it doesn’t require them to carry wads of cash or queue up for ATM withdrawals. The availability of varied forms of digital payments modes has further eased down the process of paying bills, buying a public transport ticket with an e-wallet, or using a tap-and-pay card for a purchase. All have been reduced to a matter of seconds. Additionally, digital payments have minimized the risk of theft and cash handling. As digital payments are safeguarded by robust fraud mitigation measures like Additional Factor of Authentication (AFA) and real-time transaction alerts, they have turned out to be a safer solution against cash transactions.
Digital payments are a much faster option than the traditional methods of payment as it does not hold any constraint of time or location. A user can easily make payments at anytime from anywhere across the globe. Furthermore, induced with multiple layers of protection like tokenization, encryption, etc., digital payments have turned out to be a safer and more secure payment option.