Digital payments came into the market long ago but got their due share of popularity in the last decade. The overnight evolution of digital payment apps happened during the demonetization phase when the only option that people had was to pay online. The pandemic fueled the fire further by raising the demand for a contactless payment mode. Cash and cards involved some sort of interaction all the time. So, these payment apps became the only rescue! Other than this, the cashback offers apps give monetary perks to every user, drawing them more towards the platform.
Evolution of Digital payments
RBI introduced digital payments to the world with the launch of NEFT (National Electronic Funds Transfer) transactions back in 2005. It was the first time people could make online transactions with anyone anywhere around the world without any cash or contact involved. The only drawback of NEFT transactions was that it took time for the money to reflect in the receiver’s account. That is why NPCI (National Payments Corporation Of India) rolled out IMPS into the market. It was a safer and faster payment mode to transfer funds from one account to another.
As technology kept growing at a faster speed, soon the e-wallets got introduced into the market. These were much easier to use, and the transaction completed within a fraction of a second. The best part is that you do not need to remember any account details or IFSC codes. Simply scan the vendor QR code and make a payment with a single click. E-wallets soon became a rage, and their user count increased exponentially in a short span of time. Since then, there has been no looking back! Soon, the UPI came, which sorted the issue of putting money into the wallets and then making transactions. Seeing the inclination in people, the brands soon started UPI app cashback offer to reward the customers who pay online through the QR and keep them glued to their platform!
Future of Digital Payments in 2022
We have already discussed how excellently digital payment apps have evolved in the last decade. It has come a long way to become a service most buyers use. The pace at which it is growing will continue to be the same or even better in 2022. During the pandemic, every business moved to online platforms for business growth as it was the only viable option. With time, people have adapted to the e-commerce stores so well that the transition from physical stores to online ones will continue to happen! The consumer will make online payments to shop from these stores, brightening the chances of digital payment growth in 2022.
It clearly explains why every big tech giant is entering the digital payment industry! They see a large customer base there, and scalability is assured. Currently, you can see a digital payment option everywhere; schools, malls, banks, street vendors, and the list goes on. However, soon the competition will increase, and the UPI payment apps will also emphasize becoming a cashback offers app to offer monetary benefits to the customers to make them stick to their platform.
It is fair to say that though the digital payment system didn’t get a great start, it has experienced massive success and popularity over the last decade. Moreover, its growth will continue at a similar or even better pace. More and more customers will opt for this payment mode for ease of use and monetary perks. Other reasons behind the increased inclination are the safety factors as there is no touch involved and no botheration of keeping cash! As a result, it has already become the dominant payment method and will continue to be so in 2022.
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