In today’s age, an increasing number of Indian consumers are going cashless by using money in a digital way. Such a scenario is creating interest and making demand for alternative methods of payments. As a result, it is opening up a new world of advancement in the field of Fintech.
API solution providers are staying in the front to push cashless motivation in India. They meet the demands of consumers who want the latest developments to meet their digital cash way of living. However, meeting the increasing needs of a cashless society may not occur suddenly. Several financial service drivers are conquering any hindrances today and assuring a cashless Indian society later.
Among the available payment innovations, these four are helping Indian society to become cashless.
1. UPI QR Code
Cashless payment methods have been making businesses go round by decreasing their dependence on cash. The technology of the UPI QR code is a major component of cashless payment methods. Its use is increasing with time, from small retail stores to large government sectors. Owing to the decline of cash in the Indian society, there has been an increased demand for convenient payment alternatives that can replace paper currency. Earlier, mobile wallets were more famous for P2P payments only, but the UPI QR code has changed the system. These codes have created multi-faceted, technology-driven e-wallets that an increasing number of consumers appreciate over cash.
UPI QR codes enable users to quickly receive and send payments with a few clicks and taps on their smartphones. Whether you want to pay for a purchase or send money to a friend, colleague, or family member, you can quickly do that using a UPI-enabled app on your mobile phone. QR is a 2D machine-readable code that the customers can read through their smartphone cameras and send you payments through their UPI-enabled app. BHIM UPI QR code is an advanced version that allows the amount to be transferred from any bank account to the receiver’s account within seconds without any limitations.
2. Micro ATM Cards
Another heavy driver supporting the declining usage of cash is the facility of Micro ATM. With a vision to have a cashless society in the near future, Micro ATM has been meeting consumer demands for fast, smooth, and frictionless methods of payment. Financial institutions are adopting Micro ATM cards with embedded chip that can make both contact and contactless transactions possible.
Indian youth is the primary driver that is abhorring cash usage and adopting payment innovations like Micro ATM. The speed and convenience these cards offer makes the cashless payment network well-positioned in India. With the introduction of Micro ATM cards in India’s rural and semi-urban areas, NPCI is trying to facilitate underbanked sections of the society. With Micro ATM, balance enquiry, cash withdrawal, and funds transfer can be made using only the user’s Aadhaar card number.
Micro ATM cards are wireless swipe machines that users can conveniently carry and operate. Not only cash withdrawals, but they can also be used for a multitude of services, including cash deposits, mini statements, balance enquiry, and others.
3. Point of Sale Solutions
Before demonetization, Indian payments were largely dependent on paper cash. Since a large percentage of transactions were made with cash only, most merchants did not even have a POS or EDC machine. They did not have any system to accept digital or card payments. However, with drastic improvements in the form of Micro ATM cards and UPI QR codes, it has become necessary for such merchants to accommodate the customers’ demands.
Today, an average customer uses plastic money to carry out most of their transactions. This implies that businesses that are not accepting plastic money have to leave business on the table. As a result, the market for POS machines has grown substantially over the last few years. With the increased usage of POS solutions, businesses of all types and sizes, ranging from a neighbourhood grocery store to a fine-dine restaurant, are adapting to a cashless Indian society.
POS solution providers critically contribute to empower businesses and pushing society towards becoming cashless. Now, businesses are acknowledging plastic money and accepting digital, mobile, and contactless payments to keep prominence. Latest POS solutions can transform a conventional tablet or smartphone into a POS system that any independent business can use to accept digital payments.
4. Aadhaar Enabled Payment System
India is home to a vast rural population that falls into the category of the unbanked or under-banked section of India. The digital framework of banking often does not reach out to this territory. As a result, this section is bound to keep paper currency alive for a long time. Rural inhabitants are also suspicious of the digital banking system, encouraging them to turn to cash every time.
Residents of rural India are slower to embrace the latest payment methods like UPI QR code compared to those in the metro regions. AEPS or Aadhaar Enabled Payment System is one solution that can guarantee the security of their data and validate digital payments through the Aadhaar framework. It is a bank-led model that Bank Mitras and business correspondents use to carry out financial transactions on behalf of the rural residents. With this solution, you can perform various banking operations, including mini statements, balance enquiries, and cash withdrawals. To gain confidence, AEPS is a safe method that carries out banking operations using the customer’s 12-digit Aadhaar number.
With paper currency vanishing from people’s wallets, the Indian payments system has gone through a digital revolution with no signs to subside. As API solution providers create newer solutions to ensure evolution and explore progress, they have driven India towards a completely cashless society.
FidyPay is a Banking as a Service Platform creating innovative API solutions to keep up with the changing demands of the Indian cashless society. Integrating our API solutions is like a cakewalk for our users, as you just need to use our SDK (Software Development Kit) to get started. Our ready-to-deploy APIs are security compliant to ensure the safety of your clients. Are you looking for an API solutions provider in India? FidyPay is the name you can count upon.