All you need to know about the Rise of Payment gateways in India
The payment gateways in India have always been the cheapest and fastest mode of money exchange between the merchant and the client. Being the cheapest, it has been growing since it was introduced in the country. Payment gateways in India are constantly being popularised by the online business sectors.
With the introduction of the internet, everything has become internet-centric. The internet has made transactions easy with online payment modes. The more the online transaction is used, the more the growth of the payment gateways. The best payment gateway in India has always been the core aspect of the business. If we check the data provided by RBI, we will find that with the increase in smartphone usage, the mobile payment transaction has taken a leap, and so is the usage of payment gateways. According to RBI, there has been an increment of about $10 billion in 2018 with respect to mobile transactions.
There have been many circumstances that have led a country like India to get a hike in the online business world. Several government initiatives like Digital India, which boosted the trend of the payment gateway market in India. There was a massive effect when the demonetization struck the economy of India. People were forced to get into the world of online payments and transactions, which eventually hiked up the use of payment gateways.
E-payment is the new normal.
Understanding Payment Gateway
To understand the current hike of use in payment gateways, you need to understand the term “payment gateway”. Not only in India but also around the globe, payment gateway has the same definition though it can be used in different fields of business. The term payment gateway is used to refer to the online service integrated with e-platforms to initiate the transaction between the customer and the merchant.
As the online market in India keeps on growing, the payment gateway keeps getting popular since both complement each other.
The Indian government took a bold step to fight corruption and crime by demonetizing the 500 and 1000 rupee notes. These notes covered almost 86% of the country’s circulating cash. This forced the citizens to take the option of cashless payment since there was a huge crisis for cash on the initial publication of the process. This made a good profit for the online payment modes and helped the market for a payment gateway to growing even more.
Digital India: a government initiative
The initiative of Digital India by the Indian government has become an important part of society since it plays a crucial role in the market of payment gateway. This initiative helped in the growth of several other related sectors like AI, software industries, machinery. Since the demonetization, payment gateways have become more and more viable in the current business market. With the rise of e-commerce platforms, payment gateways also get a huge boost in their growth.
Covid-19: the new catalyst
The covid-19 is considered more like another demonetization-like catalyst in a country like India. India being a developing country, the pandemic hit like lightning. But this worked out as a catalyst in the field of the online world. Digital payment providers make a huge profit out of this. Due to the coronavirus spread out, most of the work (including payment) became online. This has triggered the rapid growth of the payment gateways.
About 75% of the grocery stores have shifted towards digital transactions through phones to keep the situation in check. This led to a huge growth of the payment gateway market in India.
India has a market of about Rs. 9.5 trillion with respect to the payment gateway, which is expected to have an increase in rate by 2.4 times depending on the value of transactions in the near future.
Digitalization is the future
With a tech-savvy consumer market, with the increasing smartphone and internet penetration, it can be said that the digital payment business is going to represent an endless field of opportunities in the future. Considering the effect of the pandemic, payment gateways are going to run the world of online platforms. Nevertheless, cards are the first choice for payment around the globe, but the use of mobile wallets is on the rise. This indicates the upcoming aspects of the role of payment gateway in the future. Looking at the benefits of payment gateways, the government of India is already on the move to come up with new reforms and policies to boost the digital market in favour of the consumer and the related business in order to adapt faster and incubate invocation. Following are some benefits of payment gateways that can be helpful in future.
- Automated payments
- Linking payment details
- faster and safer transactions
- Biometric authentication
To enjoy the benefits of the best payment gateways in India, digital payment industries will need to keep up with the pace of advancement, and the government of India is already in action to reform the digital market business with innovations.