E-payment solutions are financial exchange without the use of cash and cheque. It is also called an online payment system. It established a strong relationship between customer and bank. It accomplishes the business’s economic requirements. It also provides free and eases to an individual in paying taxes (fee, licenses, and funds) and assist in keeping a record of business communications. Some of the key examples of E-payment solutions are online order placing, online reservation, online ticket booking, and online reservation.
The modes of E-payment solutions include electronic mode, payment cards mode, electronic wallet, E-cash, smart card, peer to peer mode, internet cash and check free mode etc. Payment card mode is defined by debit card, credit card, and charge card: it provides fraud protection.
According to study, “E-Payment Solutions Market in India 2011” some of the major companies that are currently working in the E-Payment solution market in India are Transecute Solutions Pvt. Ltd., Tech Process Ltd., ICICI Merchant Services Pvt. Ltd., Time SoftMoney Ltd., Avenues India Pvt. Ltd., and Bill Desk Ltd.
Some benefits of E-payments includes saving time & money, ease of use, improving security, transparency, reducing paperwork, enhancing customer convenience, better than offline payment system, reliable service and easily understood & readily adopted etc. Some disadvantages are lack of anonymity, restrictions, the necessity of internet and risk of hacking etc. Some security requirements are included privacy, non-repudiation, authentication, integrity, and safety etc.
Some companies facilitating the E payment system in India are Mobikwik, Itz Cash, Paytm, Oxigen Wallet, Axis Bank Lime, ICICI Pockets, Airtel Money, Jio Money, SBI Buddy, mRupee, HDFC PayZapp, Vodafone M-Pesa. Moreover, some payment gateways are provided by DirecPay, MobiKwik, Cashfree, and 2Checkout, EBS, PayPal India, Instamojo, RajorPay, PayU India and CCAvenue.
In India, RBI initiated various programs or regulations to encourage E-payment solution such as Payments and Settlement System Act. Indian banks offered many channels for adopting electronic mode, for instance, ATM, mobile, internet and drop boxes etc. National Electronic Fund Transfer (NEFT) and Electronic Clearing Service are some technological advancements in the country.
The market of E-Payment solution is mainly driven by increasing internet penetration and PC users. Growing in E-commerce, soaring adoption of mobile devices & reduction in their prices, ease of transaction, saving cost on printing notes, growing youth, saving cost on printing notes are increasing significantly which led to the growth of the market. Apart from the advantages some of the challenges include lack of awareness, secure payment concern, and low service quality etc. In addition, some new trends are E-payments become the preferred mode of payment, the growth of prepaid cards, the emergence of mobile wallet, increasing use by government and mobiles to emerging as an important channel for payment etc.
Nowadays, many foreign companies are showing interest in launching easier and faster payment solutions in the country. This led to the shifting of many foreign bank offices are shifted there. In upcoming years, it is estimated that the E-payment solution market will be grown increasingly due to the popularity of different modes of payments, rising in electrification and increasing consumer spending.
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Ankur Gupta, Head Marketing & Communications