Cashless payments in India have been around for a while now. When they were introduced almost a decade back, not many people adapted to the digitisation of payments. Cash was convenient for several reasons and access to technology and online banking was limited.
All this changed for good when India went through demonetisation in late 2016. The announcement was unprecedented and people had to turn to digital payments overnight. It was a moment that significantly pushed the masses toward a cashless economy.
Digital payments increased from 1459.02 crore in FY 2017-18 to 4371.18 crore in FY 2020-21 due to sustained efforts towards digitization.
Today, as more and more people subscribe to the digitised economy and cashless payments become the norm, it is important that businesses make them an integral part of their systems too.
This article explores the rise of cashless payment and its several benefits for merchants and startups.
Reasons for the rise of cashless payment
Digitisation of commerce
You must have noticed how any payment page of an online store lists Cash on Delivery right at the bottom after all other payment modes have been added. COD is not a preferred mode of payment anymore, for both merchants and customers.
With advanced user experiences, superior technology and logistic solutions selling through digital platforms has become a seamless process. Additionally with swift and secure payment gateway integrations available, enabling cashless payment for their customers is also fairly simple.
Many businesses do not have a physical store at all, hence cashless payment is a part of their overall digital approach to processes. Digitisation of commerce has also done away with a lot of paperwork and data recording hassles for merchants.
Mobile wallets
The estimated value of mobile wallet transactions in 2020 across India was 36.5 trillion rupees. This is expected to more than triple by 2024.
This data indicates how crucial it is for merchants to integrate the mobile wallet payment source on their transaction page. Mobile wallets are popular because, unlike credit/debit cards or net banking, users need not remember the CVV’s and passwords while using them – the task is much simpler.
Mobile wallets are very similar to physical wallets – users can store cash and card details there, easily make payments and transfer the wallet money from and to the bank when needed.
Paytm Wallet has been the most popular mobile wallet amongst users since its launch. Consumers are widely using it not just for e-commerce but also utility bills, recharges and other bookings.
Covid-19 consequences
The effect of the pandemic on cashless payments can’t be overlooked. The fear had been so high that many buyers did not even want to exchange cash for reasons of safety. Merchants started increasingly offering contactless deliveries too.
Offline stores were consistently shut and as a result online purchases took off like never before. Consumers also cultivated a habit for online payments that is likely to continue even after total normalcy resumes.
This period further empowered the digital payment ecosystem in terms of being accessible to everyone with better security and more features.
Benefits of cashless payments
As more and more users switch to cashless payments, it helps businesses make the payment processes more efficient, reduce operational expenses and improve the customer experience.
Here are some cashless payment benefits.
Offers/Gains: It is almost impossible to find a store that does not offer a coupon or discount. If not directly, there are multiple cashbacks, rewards and points that can be collected based on the mode of payment. It is an added incentive for buyers to stick to cashless payments.
Risks: When compared to a physical wallet, it is easy to block or disable digital payments in case the phone is stolen and data misused. So it’s not really a problem to add a large sum of money to a mobile wallet which is actually helpful in instances of travel and shopping.
Tracking: Since every spend is recorded either in the payment history, inbox or on messages, tracking payments becomes absolutely simple. Apart from checking on the spending and budgeting, this is particularly helpful during tax filing.
Convenience: Lastly, even if your customer is not tech-savvy, cashless payments aren’t a challenge. The process is self-explanatory and far more convenient and secure than using cash for payments. Cashless payments let customers transact whenever and wherever they want.
How Paytm enables cashless payments
Paytm’s in-store and online payments empower merchants to help their customers reap all the above-mentioned benefits of cashless payments. Here is a summary of the various modes of cashless payment that can be used by businesses while collecting money from their buyers.
Paytm Payment Gateway
Paytm Payment Gateway helps businesses accept payments from their customers online. It facilitates transactions by communicating with multiple channels including the bank accounts of the merchant and customer, website/app, card network, etc. to successfully transfer the payment.
Accept payments through multiple sources: You can let your customers choose their preferred payment method from a range of options that include the Paytm wallet, credit/debit cards and net banking.
Enjoy highest transaction success rates: Paytm Payment Gateway’s direct integration with the top six banks 15 bank gateways ensures faster transaction time without any dependency on mobile networks.
Get instant settlements: Paytm Payment Gateway transfers the amount to your bank on the next day of the transaction without any exception. However, you can also explore other options such as same-day settlements and batch settlements depending on your business needs.
Track insights on dashboard: An interactive dashboard allows you to track and analyse your sales, conversions and several other insights that help in business decisions. You can also use it to generate invoices, issue refunds, create payment links, and much more.
Offer secure payments: Paytm Payment Gateway is Payment Card Industry Data Security Standards (PCI-DSS) compliant, offering complete protection against potential fraud or data theft. Additionally, a team of cyber experts works with the latest technology to monitor transactions and ensure that they are safe and secure.
Paytm Payment Links
Paytm Payment Links are useful for businesses that are yet to build their website or apps. Merchants can facilitate online transactions and accept payments remotely by generating the payment link and sharing it with their customers through SMS, email, WhatsApp, chatbots, etc.
Enable instant transactions: You can create a payment link in under a minute and share it with the customer with the help of a merchant dashboard. The customer can subsequently access the link and choose the preferred payment source to instantly complete the payment.
Create multiple links: You can also generate multiple payment links to share with your vendors or customers at once. Paytm Payment Links support international payments as well.
Offer an alternate solution: Paytm Payment Links can also be used in scenarios where a customer is unable to make a payment on the website and needs an alternate method to process payment. It is also useful during home deliveries where the buyer may be short of cash and prefer a cashless payment method.
Paytm Soundbox
Paytm Soundbox is a device that enables payments at your offline store not just through a QR scanner but also an audio alert to indicate the receipt of money.
Simplify payment management: Soundbox helps you manage payment at the cash counter more efficiently, especially during peak hours. You need not manually verify payment from every customer since the device automatically announces it once the payment is completed.
Track payments: You can keep a track of the transactions even while managing other tasks at the store as the Soundbox alerts you after each successful payment. A time-saver for you as well as your customers.
Get instant alerts: Keep a tab on your cashless payments in real-time with audio confirmations and eliminate any chance of payments being evaded or being cheated by a buyer. This is especially useful if your store has large footfalls.
Paytm QR Code
Paytm QR code is a scan and use device to conduct a cashless transaction offline.
Paytm Dynamic QR code can be scanned for payments in stores, on invoices and delivery receipts, kiosks, as well as websites and apps.
Enable secure payments: Your customers do not need to share card/bank details while scanning QR codes, and hence they are relatively simpler. Moreover, since the payment information is encrypted the process is completely secure.
Ensure quick payments: Transactions can be completed within seconds by scanning the code. Paytm QR accepts several payment modes including RuPay cards, Paytm wallet and UPI apps. Once the payment is completed an update is instantly shared with you as well as the customer.
No additional infrastructure: No matter what the size of your store is, a QR code can be set up on your payment counter without the need for any infrastructure. It is also an economical option for cashless payments.
Paytm All-in-one POS Solution
The All-in-one POS is a payment & billing device for secure & seamless payment experience with several payment modes. The device comes with a multi-card reader magnetic strip, bluetooth and wifi among other features.
Offer multiple payment methods: Accept cashless payments at your store through several modes including Paytm Wallet, UPI based apps, debit and credit cards.
Customised solutions: Track sales performance at SKU level and manage inventory on the device. Paytm POS can be also customised for multiple businesses including retail, restaurants and ticketing.
Inbuilt scanner & printer: Paytm POS comes with an inbuilt printer and scanner to enable faster checkouts with scan, pay and invoicing in a single device.
Conclusion
There is no denying that cashless payments are slowly replacing cash transactions. As digital penetration increases and customers adapt to its ease, businesses need to take suitable steps to enable swift cashless payments.
Paytm’s multiple offerings are ideal options for startups of all sizes and scales to ensure a seamless customer experience for their buyers while making payments on the website, app or the physical store.
