A Detailed Analysis of Selected Digital Payment Systems in India

Abstract

The world is getting digitalized in all its aspects ; so is India. The payment systems in India have also been digitalized and their use is steadily on the rise. Digital payment systems are going to drive the growth story in the financial sector. We, in this explanatory research paper, attempted to perform a detailed analysis of selected digital payment systems from the universe of digital payments systems available in India. We concluded that the digital payments in India are increasing at a rapid pace, however, cash still remains a preferred mode of payment and transactions. Transaction failures, systems delays, and lack of proper infrastructure were identified as the prime hurdles being faced by the industry. We suggested going hyper local in order to improve the awareness of digital payments from grassroot levels and launch an aggressive campaign for adopting digital payments by drawing parallels to the Swachh Bharat campaign, make some changes in payment systems, and digitize the government-to-government (G2G) and government-to-person payments (G2P) to save on various costs.