What’s in Payments ?
Though we cannot deny importance of money in today’s world, a very less % of people are financially literate & eager to learn!
Payment industry in India is growing more than ever before and it’s very crucial to understand the systems involved in the overall process of the way we pay. This would give a lot of free hand to spend where we can, and take a hand back where we should.
Also, that product person in me never really allows me to read, consume or share anything w/o actually knowing the, ‘Why’, ‘How’ & ‘What’ of anything :p. Soo, before we deep dive, here we have a little of it!
WHY ? : Why to understand ‘Payments’ ?
Individual Level: Payments as a eco-system is very different of what it means to us, and even if not the whole processing, we could avoid a lot of major and minor frauds by just knowing of what is correct & what is not!
Organisational Level: Knowing the correct norms for a transactional activity will always help the organisation grow at a correct direction, both legally and financially.
For all of us, basically,
- To make informed financial decisions. When you understand how payment systems work, you can make better decisions about how to manage your money. For example, you can choose the payment method that best suits your needs and budget.
- To protect yourself from fraud. By understanding how payment systems work, you can be more aware of the risks of fraud and take steps to protect yourself. For example, you can be careful about sharing your personal information online and only use secure websites.
- To stay up-to-date with the latest trends. The payment industry is constantly evolving, so it’s important to stay up-to-date with the latest trends. This will help you make sure you’re using the most secure and convenient payment methods available.
- To be a more informed consumer. When you understand how payment systems work, you can be a more informed consumer. This means you can make better decisions about where to shop and what to buy.
HOW ? : How have we grown till date ?
The payment industry in India has grown significantly since 2005. In 2005, the total value of payments made in India was estimated to be around US$100 billion. By 2021, this figure had grown to over US$5 trillion. This growth has been driven by a number of factors, including:
- The rise of e-commerce and online shopping
- The increasing penetration of smartphones and internet access
- The government’s push for digitalization
- The growing popularity of digital wallets and mobile payments
WHAT ? : What are the factors influencing the growth in Payments eco-system?
- The rise of contactless payments: Contactless payments are becoming increasingly popular in India, as they offer a convenient and secure way to pay for goods and services.
- The growth of mobile payments: Mobile payments are also growing in popularity in India, as more and more people have access to smartphones.
- The increasing adoption of digital wallets: Digital wallets are becoming increasingly popular in India, as they offer a convenient and secure way to store and manage money.
- The growth of e-commerce: E-commerce is growing rapidly in India, and this is driving the demand for digital payments.
The growth of the payment industry in India is a positive development for the Indian economy. It is helping to make it easier for people to make payments, and it is also helping to promote financial inclusion.
Here we go ahead acknowledging the fact that even if not a deep dive, we should all be financially literate, reading on the trends and understanding how it’s going to be beneficial to us.
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