Online payments have taken over the Indian payment industry by storm. Even though cash transactions still hold immense importance in India, the rise of digital payments is not to be ignored.
Reports suggest that the digital payment volume in India grew from Rs 1,459 crore in FY 2017-18 to a whopping Rs 4,371 crore in FY 2020-21. What has accelerated digital payments is the Covid-19 pandemic.
This goes on to prove the capacity of digital payments to shape the Indian payment landscape. Advanced payment facilitators like online payment gateways and payment links are the future of digital payments in India. Hence, businesses need to stay updated with state-of-the-art technologies and streamline their payment processes with the customer’s demand.
The Indian market currently has a host of digital payment companies. With the digital payment volume set to cross 71% by 2025, a few trends are likely to shape the payment industry in India.
Here’s a look at the top 5 such trends.
- The Need For Security
Plenty of businesses have shifted to the digital payment sector through digital payment links. However, this has also increased the need for foolproof and robust security protocols within the digital payment industry. Consumers tend to select the payment methods that offer them the highest level of protection.
The looming threat of cyberattacks and data leaks has forced payment companies to strengthen their cybersecurity measures significantly. Most companies have done this by implementing Artificial Intelligence (AI) and Machine Learning (ML). As per a Tata Consultancy Services report from 2017, 44% of companies worldwide use Artificial Intelligence (AI) to detect and counter security threats. This number is only likely to rise even further as companies improve their cybersecurity with AI and ML.
Apart from integrating AI and ML, customer authentication is also making its way into the best payment gateways for India. This has resulted in the emerging trend of biometric authentication in 2021. Payment companies can now verify customer metrics with features like fingerprint identification, vein mapping, heartbeat analysis, and facial recognition. Biometric authentication can become one of the top ways to improve security measures for customers when they make digital payments.
Zaakpay is a leading payment gateway that allows customers to make secure transactions and limit the threat of hacking and cyber-attacks. With features like PCI DSS compliant systems and tokenized storage, businesses can offer a foolproof payment solution on their websites and apps.
- Innovation Through Contactless Payments
One of the after-effects of the Covid-19 pandemic is the increasing usage of contactless payments, leading to various innovations in the field. This has led to the rise of the best payment gateway for India. Using features like payment links and QR codes, customers can complete the transaction on their devices without touching anything in the stores.
- The Rise Of Mobile Point-Of-Sale
From a study undertaken by Global Market Insights, the mobile point-of-sale (mPOS) will have a compound annual growth rate or CAGR of around 18% in the next 6 to 7 years. This high rate of growth is primarily due to the usage of cloud-based payment linksand systems.
Through the mPOS system, businesses can seamlessly accept payments from the consumers on the go! Even for stores using such technology, the entire payment process becomes much more efficient and flexible.
- The Integration Of E-Commerce
It wasn’t very long ago that businesses and financial service providers were two different entities working together. However, that has begun to change with businesses incorporating the best payment gateways for Indiain their websites and apps. This unified approach can provide for a seamless customer experience and increase the real-time visibility of businesses.
- The New Age of B2B Payments
With the advent of digital payment systems, it is no surprise that the business-to-business payment or B2B payment is also catching up. Fast digital payment systems have shown the trend of B2B payments becoming more personalized and transparent. In addition, digital payments will also lead to the incorporation of services like invoicing and payment schedules in the future.
Overall, we should expect an increase in personalization and customization in the B2B and B2C payment arena through the assistance of digital payments.
Of course, there are other trends in the digital payments industry, like P2P payment trends and the decline of cash payments. Yet, in the next few years, more and more trends will emerge that will change the payment industry landscape. Therefore, when selecting a digital payment gateway and payment links provider, you must check how up-to-date the system is with the newer trends.