Future Trends of Payment Gateways in India www.deekpay.com

'Cash is king' is a widely used phrase in the Indian economy for sponsoring taxis, tipping and other related expenses. Over the past 200 years, there has been a significant shift in payment systems. Whilst the use of cash continues to be of great significance, theIndia PaymentsThe field has adopted innovative technological changes with the introduction of digital payment mechanisms in 2016.

Payment GatewayThe evolving future trends determine the regulatory structure of the payment industry organisations. The continuous development of internet and technology has simplified the process of making mobile payments in India using different payment gateways.

Evolution of Payment Gateways in India

Payment gateways in India have evolved as an indispensable tool for businesses to ensure seamless transactions in the digital world. The emergence of payment gateways in India has provided merchants with a variety ofdigital paymentmechanisms such as Visa, Apple Pay, etc.

rightonline paymentGrowing demand for solutions is the main reason for the evolution of payment gateway industry trends in India. Moreover, COVID-19 (pandemic) has also contributed to the growth and evolution of online payment mechanisms, facilitating contactless transactions through online payment gateway services.

What is a payment gateway?

A payment gateway is a type of online payment software that acts as an intermediary between a bank account and an intended transfer portal. Payment gateway licence holders establish a secure payment mechanism to expedite the management of bank transactions.

Read more:What is a payment gateway?

Future Market Outlook for Payment Gateways

India payment gateway market size is expected to grow from Rs. 1.6 billion in 2024 to Rs. 3.2 billion by 2033. The growth prospects of the evolving payment gateway industry is expected to grow at a CAGR of 9.7% during 2023-2031.

Advantages of Emerging Future Trends of Payment Gateways in India

The emerging trend of adopting payment gateway mechanisms can bring the following benefits:

Adjusting customer value, Provide real-time payments; Ensure faster transactions; Multiple payment systems; Ensure easy integration with e-commerce platforms; Ensuring advanced security features such as two-factor authentication; Effectively ensure transaction processing; Building brand reputation and loyalty, etc.

Challenges facing emerging trends in payment gateways

The emerging trend of payment gateways is faced with certain challenges that are seriously leading to financial losses and mishandling of information. The following are the challenges faced by merchants and customers when using payment gateway mechanisms:

Cybercrime: Cybercrime related to online payments is frequent. Cyber-attacks have affected the functioning of payment gateways in India, which may lead to hiding of skills and merchant account details. Data Security: Sensitive customer data stored in the payment gateway system may be stolen or sold by hackers for any financial gain. This may lead to data security breach without customer's consent or without their knowledge. Loss of time and money: Loss of time and money is one of the major challenges in the process of fixing and preventing technology failures. Exposure to technical failures: Payment gateways may experience technical errors and failures for various reasons, leading to service interruptions. Infrastructure: Lack of banking, internet connectivity and other infrastructure can be one of the major challenges faced by payment gateways in India.

Trends in the Indian Payment Gateway Industry

The trends in the Indian payment gateway industry are constantly changing. Here are some of the future trends in payment gateway platforms introducing innovations and technological developments:

1. Artificial intelligence payment gateway

Artificially intelligent payment gateways are one of the emerging trends in the payment gateway industry. They are the result of continuous exposure to technological changes beyond the payment industry. Companies looking for efficient tools and digital platforms in India have started using AI-based technologies (e.g. voice commerce, facial recognition, etc.) to streamline the payment gateway system in India.

2. Electronic commercialisation

E-commerce is the most critical trend in payment systems. The number of transactions conducted through e-commerce payment solutions has increased significantly. E-commerce payment platforms are now equipped with easy-to-implement application programme interfaces (APIs), ensuring hassle-free payment solutions.

3. Micro-payments

The emerging trend of payment gateways in India emphasises micropayments as a potential way for businesses to charge for their online content. Micropayment technologies require users to pay transaction fees to sustain content revenues.

Simply put, micropayment is an electronic payment service provider that allows websites and publishers to receive small payments.Zomato, Swiggy, Fiverr, Google Ads, Upwork, etc. are some of the widely used micropayment providers in India.

4. Unified Payment Interface of India UPI

The Unified Payment Interface of India is one of the emerging trends of payment gateway systems in India.UPIIt is a new generation payment processor that facilitates a digital and cashless economy through online fund transfers from one bank to another. In short, UPI Payment Gateway ensures the delivery of digital services and online transactions through UPI infrastructure.

Read more:What is UPI?

5. Buy Now Pay Later (BNPL)

Buy Now, Pay Later (BNPL) is an emerging payment gateway that allows consumers to make a purchase and pay for it later in instalments.BNPL facilitates more switching purchases and offers instalment options to increase sales and customer loyalty.

6. Digital wallets

Over the last 15 years, the Indian payments industry has been focusing on the development of digital wallet applications. The use of digital wallets ensures free flow of data and services through payment gateway mechanisms.

7. Internet of Things (IoT) payments

The Internet of Things (IoT) payments ecosystem requires state-of-the-art technological developments that can automatically communicate with payment gateways and financial institutions when needed. This system builds on the emerging trend of payment gateways.

8. White-labelled payment gateways

One of the emerging trends in payment gateways is customised payment processing through white label gateways. These gateways enable businesses to accept online payments through a variety of methods such as credit cards, digital wallets and bank transfers.

9. Biometric payments

The integration of biometrics is evolving when it comes to authentication in payment systems. Many payment gateways, including Apple Pay and Google Pay, use facial or fingerprint recognition for biometric authentication.

10. Cryptocurrency payments

cryptocurrencyPayment methods emerged in the wake of the digital shift from physical paper to digital cash. The cryptocurrency interface promotes the use of crypto coins and tokens for secure and fast online payments.

Cryptocurrencies use blockchain technology, which is expected to be an important part of future payment systems. It records all transactions related to cryptocurrencies and stocks.

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