Evolution of Payment Methods in India:- www.deekpay.com

Over the past few years, we've made significant strides in the way we pay for things, from credit cards to one-click payments. Gone are the days when you no longer need to carry cash with you all the time. With the proliferation of fintech, India is becoming a 'cashless economy'.

Pre-Internet era

Prior to the Internet era, electronic payments, especially credit and debit cards, became the most dominant form of non-cash payments.In 1980, the Central Bank of India introduced credit cards in partnership with Visa and Master Card. Retailers and consumers quickly embraced this as a convenient means of payment.

The arrival of the Internet!

In 1995, VSNL LIMITED launched Internet services in India with an average speed of 9.6 Kbit/s. The speed was later increased to 33.4 Kbit/s with 140,000 Indian subscribers. With the popularity of the Internet in the mid-1990s, it brought about a new boom as people started selling products and services online, known as "e-commerce".

In 1999, Indiaplaza.com launched India's first e-commerce website. However, with the rise of e-commerce businesses, it required a new payment system, one that consumers could easily use online.

Technology brings change

In 2000, India's first payment aggregator "BILLDESK" was launched in India. However, with the growth of online business, there is still a need to create an online payment system that focuses on the needs of merchants and consumers!

In 2007, a startup called Flipkart opened its doors online.Flipkart changed the habit of shopping online by bringing all products and services under one platform. As the e-commerce business grew, so did the need for websites to integrate secure and reliable payment gateways. Payment gateways help in completing transactions between merchants and consumers quickly and securely. Payments are made in a single click and all information is encrypted and tokenised.

PAYU PAYMENTS was launched in India in 2011 and we have seen an increasing number of online transactions.

In 2016, the Government of India and NPCI launched UPI - Unified Payment Interface and UPI was quickly accepted by the masses.The volume of UPI transactions has been increasing year on year.

Seeing the utility and transactional ease of UPI, it didn't take much time for payment gateways to integrate UPI in their systems as an additional payment option offered to their customers. It was during this period that payment gateways flourished. For example, PayU not only offers a transactional payment gateway that supports all payment options, but also offers a robust dashboard that merchants can use to track and manage transactions.

The choices are numerous!

Today, people who run businesses, both online and offline, have a wide range of payment solution providers to choose from. But with PayU, the choice is no longer difficult. Even if they don't have a website, they can collect payments with their customers via SMS, email or WhatsApp by sharing the PayU payment link.PayU offers an end-to-end solution from checkout to final settlement.

Learn how to accept payments online using the PayU payment link.

The Future of Payments

According to statistics, the digital market in India is expected to reach $1 trillion by 2025. With the popularity of e-commerce, the payments industry will see more innovations in the checkout process and in providing convenience to customers.

We may also see an increase in "invisible payments". Invisible payments include more secure and advanced payment systems, such as biometrics and cryptography, through which the customer does not have to pay in person, but does so automatically and therefore invisibly.

reach a verdict

With fintech evolving at an unimaginable pace, the financial sector in India still has a lot of potential. The number of digital transactions will increase as merchants and consumers discover the ease of digital payments. If you are an online business and looking to grow your business exponentially, integrate PayU - India's leading payment gateway. Know more.