Technology

Explained In Detail: How COVID Impacted Online Payment System in India

Since the beginning of the pandemic, many businesses have been shut and it has taken the world to a financial stop. Either huge or small-scale business owners were finding a way out of this pit hole. After a long halt around the world when every business was rethinking its measure to survive in the global market, several opportunities exploded. Every other business adapted to the new normal and implemented many measures to meet the customers’ needs. Many were left behind the market but many grabbed the opportunity and grew their business.

Especially in India, which is the hub of the unorganized sector, there are an uncountable number of business owners who were pushed aside by the mega giants of the global market. The primary reason was the online paying facility. With time almost every service provider in India thought of minimizing the contact with the customer. The online payment system bloomed in India and reached every corner within a short period. Now, every business person either huge or small thinks of incorporating popular payment gateways such as Paytm, Phonepe, Google Pay, and many more.

How COVID Impacted Online Payment System in India?

Although COVID proved to be a major blow to the economy in India and Online payment systems witnessed a 30% decline in Lockdown periods. But, soon when there were eased measures online payment systems bloomed. Various payment gateway options were available for both customers and merchants.

Let’s see how COVID impacted online payments in India:

●  Increased Digital Payments

No need to say that in recent years India has been aiming to achieve digital payment to every corner of the country. Nowadays, even small vegetable vendors are carrying scan portals for the ease of customers. Online payment gateways have found a way to flourish in the Indian market because of the immense number of users. Paytm, Google Pay, and Phonepe have dominated the country and regardless of knowledge, everyone in the country knows about these companies. A survey found that nearly 35% of people have used these apps for paying online more than ever. This has benefitted these online payment systems a lot and they have earned the trust of common people.isaimini

●     International Reach

The online payment systems which were started in India are now blooming around the world also. These payment gateways have established a name and facilitated the people to pay anyone from any part of the world. These online paying systems earn more when a person is trying to pay overseas for any service. The tax and surcharge are more for overseas purchases hence, these payment gateways are benefited from this. This way these companies have got an opportunity to reach every part of the world.

●     Hassle-free payment for all

The scenario has changed when it comes to huge transactions. There was a time when people used to spend a significant amount of time counting the money and there was also a chance of mistake. With the introduction of these payment gateway platforms, merchants and customers both can experience the magic of hassle-free payments. There is no chance of a mistake even when you make a transfer of large payments. Reduced mistakes and hassle in the transaction have given these platforms immense popularity. People are more likely to pay online because there are many rewards attached to it.

●     Security

There was a time when people would get anxious about carrying money physically with them but these online payment systems provide a secure way to transfer money to merchants and customers. The payment gateway platforms have also introduced many security measures for the advantage of their customers. This has helped these platforms to improve day by day and provide the customer with a more problem-free experience.

●     Increased Fraud

There is no doubt that this flourishing market has benefitted online payment systems but cyber fraud poses a major concern for both customers and merchants. Many hackers and third parties make fraud calls and messages to innocent customers and try to trick money in the name of these established payment gateway platforms. Although various measures have been taken by these platforms such as advisory messages all the time, security OTP verification, and many more still the forgery continues. The merchants also face the same problem and many times these online payment systems lose a good amount of users. COVID has pushed online forgery to a new extent and it should be avoided by proper methods.

COVID has forced these online payment systems in India to excel and outwit their competitors. This has led to the emergence of an era where a user can get the product within hours at their doorstep without any contact. If you too are looking to add an online payment gateway for your business, you can check out Cashfree.

Contactless, hassle-free, better customer experience, fast transactions, and many more are some of the features of payment gateways in India. Indians are using online payment systems more than ever that in turn increases the cash flow in the market. This cash flow also boosts up the country’s economy and aims for digital India.

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