Timeline of India’s Digital Payment System Revolution
India has experienced a significant digital revolution over the last few years, particularly in the realm of digital payment systems. Here’s a timeline of some of the key events and developments in this space:
2014:
The government launches the “Digital India” campaign, which seeks to increase the use of India’s digital technology in various aspects of life, including payments.
2016:
The demonetization of certain high-value currency notes leads to a surge in digital payments as people are forced to seek alternative payment methods.
2016:
The Unified Payments Interface (UPI) is launched by NPCI, enabling instant bank-to-bank transfers via mobile devices.
2017:
The government launches the BHIM (Bharat Interface for Money) app, which allows users to make UPI payments via a simple mobile app.
2017:
Google launches its Tez payment app (later renamed Google Pay), which quickly gains popularity in India.
2018:
WhatsApp launches a beta version of its payment service in India, which allows users to send and receive money via the popular messaging app.
2019:
Walmart-owned PhonePe becomes the first non-bank UPI payment app to reach 1 billion transactions in India.
2019:
The government launches the National Electronic Toll Collection (NETC) program, which enables cashless toll payments on all national highways in India.
2020:
UPI transactions in India cross the 1 billion mark for the first time in a single month.
2020:
The Reserve Bank of India (RBI) allows the use of video-based customer identification for opening bank accounts, which boosts the adoption of digital banking in India.
2021:
UPI transactions in India cross the 2 billion mark in a single month.
2021:
The RBI introduces new guidelines for digital payment providers, aimed at ensuring the safety and security of digital transactions.
India’s digital payment system revolution has been rapid and transformative, with the introduction of innovative payment technologies and government policies driving the widespread adoption of digital payments across the country.
According to a report from Boston Consulting Group and PhonePe, India’s digital payments market is expected to grow over three times its current size, from $3 trillion to $10 trillion, by 2026.
Benefits of digital payment systems
Convenience: Digital payments allow users to make transactions quickly and easily, without the need for physical cash or checks.
Safety and Security: Digital payments are often more secure than traditional payment methods, as they use encryption and other security measures to protect against fraud and theft.
Cost-Effective: Digital payments can often be less expensive than traditional payment methods, as they eliminate the need for paper checks and physical cash handling.
Increased Transparency: Digital payment systems often provide users with detailed records of their transactions, making it easier to track spending and manage finances.
Financial Inclusion: Digital payments can be particularly beneficial for people who are without access to traditional banking services. as they provide an easy and accessible way to make transactions without relying on traditional banking services.
Environmental Benefits: Digital payments can help to reduce the use of paper and other resources associated with traditional payment methods, making them more environmentally sustainable.
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