How do online payments work in India? :- www.deekpay.com

Online payments are not a new concept, but during the epidemic, people realised the need for digital transactions in their daily lives. The epidemic acted as a catalyst for the development of online payment systems in India, especially due to the urgent need for contactless payment systems such as UPI, wallet payments, card payments, etc.

During the festive season, online payment banks are finding that 60% consumers are using online payment methods to shop through e-commerce platforms. So what is online payment?

What does online payment mean in India?

Online payments involve paperless transactions over a secure network. Online payments are not only convenient, fast and secure, but can also be used in a variety of ways, including by paying for online purchases, transferring money online and making investments. Online/digital transactions require the cooperation of multiple sectors of the economy, including banks and financial institutions.

When making an online payment, the sender and receiver must have the following conditions:

- Bank accounts

- Online banking services

- Transmission medium, e.g. bank or service provider

Different ways to pay online in India

Currently, there are several online payment options available in India. These payment methods were widely used during the epidemic. Let's take a look at them in detail below:

ATM card

Bank cards are one of the widely used payment systems in India. Cards are easy to carry and offer payment security. The most common bank cards used for online payments include debit and credit cards. These cards are widely used for both online and offline transactions. Some of the well-known payment networks include VISA, RuPay and MasterCard.

Aadhaar Enabled Payment System (AEPS)

As the name suggests, anyone holding Aadhaar can use AEPS for online/digital transactions provided the Aadhaar number is linked to a bank account.Aadhaar holders can use AEPS to check balances, make withdrawals, deposits, and perform Aadhaar to Aadhaar bank transfers. If your Aadhaar number is registered with a bank account, then you can make online payments using AEPS. Users don't need to provide bank details and can transfer funds from one bank account to another by simply using their Aadhaar number.

When making an AEPS transaction, you need to:

- Go to a micro-ATM or business contact (possibly your local shopkeeper who has the necessary equipment to act as a "micro-ATM" to help with immediate transactions).

- Provides details of Aadhaar.

- Use your fingerprint or iris scan to authenticate yourself and then proceed with the transaction.

Unified Payment Interface (UPI)

UPI is the most popular online payment system that integrates multiple bank accounts into one application. Any individual with a bank account can send or receive funds through the UPI app.UPI is very user friendly and any UPI transaction can be done in just a few clicks on a mobile phone.UPI also allows users to transfer money without remembering the bank account number or IFSC code. All the user needs to know is the phone number or virtual payment address.

mobile wallet

A mobile wallet is actually your virtual wallet. Usually, people associate their bank accounts with this online/digital wallet to make secure transactions. Users can download mobile wallet apps to recharge these wallets and use them for shopping. Mobile wallets offer services like sending and receiving funds, merchant payments and online shopping, thus enabling face-to-face and card-less payments.

Internet banking

Internet banking allows users of a particular bank to perform financial activities online, including transferring money, applying for loans, credit cards, closing accounts, etc. Almost all Indian banks offer cyber banking or e-banking services. The cyber banking system is open throughout the year. The wide range of financial services offered by cyber banking has made it a popular choice for customers. Almost all online transactions can be done using internet banking.

PoS terminal

A PoS terminal or point-of-sale terminal is the location where a transaction takes place. For a long time, PoS terminals were the machines at the checkout counters in shopping malls and shops that were used to make payments using credit or debit cards. These were the machines where users swiped their cards and entered their PINs. However, as other payment methods have become more popular, new PoS terminals have been created.

Physical PoS terminals are located in shops and shops; mobile PoS can be accessed via mobile phones or tablets; and virtual PoS allows for hassle-free payments via web-based applications.

mobile banking

Mobile banking lets you perform all your financial activities through your smartphone. It is an umbrella term that covers a wide range of banking services accessible on mobile devices. With the rise of UPI and digital wallets, mobile banking services are expanding. Due to its convenience and speed, mobile banking has become a popular option. Most banks have their own mobile banking apps that allow users to access all services including investments, bank statements, bill payments, etc. at the click of a button.

PayU: India's online payment partner

PayU provides online merchants with innovative payment technology with multi-faceted functionality. It is an easy-to-use digital transaction tool for individual freelancers, startups and commercial enterprises.

There are several advantages to integrating the PayU payment network into your business, including:

- High transaction success rate.

- An off-the-shelf payment network that requires no programming skills to set up.

- PayU offers developer-friendly APIs and plug-ins for easy integration with merchant websites.

- Once your account is set up, you can easily accept payments. The entire process is online and hassle-free.

- The PayU team helps merchants operate seamlessly and securely without downtime.

concluding remarks

The Government of India, through the "Digital India" campaign, has taken a number of measures to encourage the use of these online payment methods. The campaign aims to create a cashless economy. Online payments help you 'take control of your money'. At PayU, we make it easy for people to make online transactions. Learn more about us at PayU.