What's the Most Used Indian Payment Methods in 2023

The Indian government's historical efforts to establish a financially independent populace and an IT-driven economy have resulted in the development of novel payment systems. To the point that by FY23, digital payments in the Indian digital arena will have reached $1 trillion.

India is moving in the direction of a "faceless, paperless, and cashless" society led by FinTech. These alternatives to paper-based money transfers are reshaping the payment infrastructure in the country. 

So, which service would be best for your company if you needed to accept payments? Intense 'destructive invention' in the realm of digital payment methods has shown several fascinating tendencies that might inform your decision-making regarding the payment methods that will most likely benefit your organization.

Popular Indian Payment Options

At the moment, new players in India's payment method ecosystem are making established companies rethink their strategies. Therefore, new payment revenues are expected to hit 13% annually, according to industry forecasts.

Credit and Debit Card

Credit and debit card-based digital payments are widely used across India. Customers can get versatile, Omni-banking vendor assistance from companies like VISA, Mastercard, American Express, and RuPay, which Indians commonly use for playing casinos online or placing bets to play Aviator and other video games too.

These credit card processing services also offer 2-factor authentications with PIN and OTP verification, as well as high-quality services that are PCI DSS-compliant. You, the customer, can now pay safely and quickly for your online and in-store transactions. Customers might benefit greatly from the lack of transaction fees and other enticing offers. Limiting the amount that can be transferred at once helps them keep track of their monthly EMI and utility payments. 

Cash

Despite the demonetization in India, cash transactions continue to be widely used. As the oldest and most genuine form of currency among the unbanked people, it would be inaccurate to state that paper finance has fully vanished from the Indian economy. Cash is the most common payment method when a business or seller does not have access to electronic payment systems.

People who don't have the technological literacy to use things like QR code readers, mobile wallets, or online banking are also more likely to pay with cash. 

Due to the slump caused by the epidemic, cash has made a strong comeback. However, public sentiment in favor of additional contactless options was bolstered by the COVID-19 outbreak.

Digital or Mobile Wallet

Popular alternatives to the conventional mobile wallet that allow users to deposit funds into their virtual wallets include Paytm, PhonePe, MobiKwik, etc. They can add funds to their mobile wallets to pay for other services. You can get a cashback bonus on purchases made using Google Pay of up to 1,000 INR.

Recharge your phone for more than INR 99 and save money using Paytm. Coupons are available to all customers, and new users receive cash back when they sign up with PhonePe. AmazonPay is a handy mobile wallet that integrates with the online store. It also provides several other services, such as banking credit cards with cashback, many ways to pay for utilities, etc. 

Using a QR code to make a purchase or send money to another person is a premium function offered by some mobile wallets. Payment transactions can earn you cash back or entry into a lottery.

COD

Cash on delivery (COD) has been growing in popularity due to recent expansions in eCommerce businesses between 2015 and 2020.

Many online stores, like Amazon, now accept COD payments from customers for a small or even free fee. Companies can now reach customers in tier-2 and tier-4 cities thanks to the rising popularity of cash-on-delivery. New data shows that cash on delivery is still popular in rural India. As a result, Non-Cash Payment Methods have yet to achieve the same level of invasive market dominance seen in India's larger cities.

Mobile Contactless Payments

In India, shops use stationary, portable, and online point-of-sale terminals to process customer transactions.

Several companies in India's payment gateway industry enable safe, contactless payments via mobile wallets and QR codes. The widespread adoption of micro ATMs as contactless payment demonstrates their superiority. Have faith because they all work well with numerous financial institutions. 

However, a smartphone with payment acceptance capabilities is required for mobile contactless payments. One-touch payments at frequently visited retail locations and the consolidation of FinTech services across all channels are two examples of the added benefits driving this payment pattern.

Direct Debit 

Direct debit solutions are digital or real-world replacements for your traditional bank debit card. In addition to seamless integration with your bank, they also provide highly secure, multi-factor, authenticated direct debiting from your bank account.

You can use direct debit to pay at point-of-sale terminals, make purchases with QR codes, send money to other people via digital payment networks that work across apps, and so on.

Since it is easier to transact and document without physical contact, direct debit has grown in popularity as a cashless payment mechanism during COVID times.

Direct debit is convenient for merchants since they are spared the hassle of dealing with and securing cash. It's a quick way to avoid inspecting your funds for authenticity and save time at the bank. There are nominal fees associated with using a debit card. In addition, retailers need access to point-of-sale (POS) terminals that support many types of electronic payment, including debit and credit card transactions.    

Bank/Wire Transfers

Depending on their bank, businesses can now make secure online payments utilizing UPI payment systems that are PCI-DSS certified. Protecting against blunders in payment and banking information is just one perk offered by some payment apps. 

UPI 

With the advent of the Unified Payment Interface, or UPI, cashless transactions are quickly becoming the standard in India, ushering in a more prosperous and technologically advanced future. 

With merely a payment address, money can be transferred instantly from one account to another, eliminating the need for time-consuming and laborious third-party transaction processors. The best part about UPI is that most popular payment gateway providers now incorporate UPI functionality into their sites, making it unnecessary for the end user to switch between sites to use the service. 

The Above Photo is by Mika Baumeister on Unsplash