As technology rapidly advances, it has ushered in new ways of completing financial transactions. Gone are the days when transactions were only possible through physical cash, bank transfers, or checks. With the advent of mobile-based payments, the way we pay for goods and services has changed drastically. Mobile-based payments refer to the use of mobile phones and other handheld devices to make payments for goods or services. This mode of payment has seen rapid growth globally, with over two billion people using mobile-based payments to make purchases.
Two billion people use mobile-based payments
According to data, over two billion people across the globe use mobile-based payment methods to make purchases. This represents a significant shift in the way people make transactions. The use of mobile-based payments has been driven primarily by the convenience they offer, with customers no longer having to carry large sums of cash or cards around.
UPI is a preferred mode of digital mobile-based payments in India
In India, UPI (Unified Payments Interface) is perhaps one of the most preferred modes of digital mobile-based payments. Launched in 2016, UPI is a real-time payment system that allows users to transfer money between banks instantly. The system has gained traction in India, with its popularity fueled by its simplicity, convenience, and speed.
Staggering statistics about UPI transactions in March 2023
In staggering statistics published by NPCI, it has come to light that in the month of March 2023, the UPI transaction volume was ₹14,10,443.01. This demonstrates the widespread adoption of UPI in India, with the system being used by businesses of all sizes and individual customers.
Payment Links and Their Use in Mobile-Based Payments
Payment links are URLs sent through SMS, which redirect the customer to the payments page to complete a purchase or make a transaction. Payment links are becoming increasingly popular as they allow businesses to avoid the expenses that come with maintaining a mobile app. Customers also find payment links convenient as they require no installation and can be easily accessed through their mobile phones.
Setu’s UPI-based payment collection solution
Setu, a fintech API infrastructure startup in India, provides a UPI-based payment collection solution for mobile payments. The solution is designed to increase the speed of transactions, lower costs, and ease the burden on businesses that would otherwise have to build mobile apps. Setu’s UPI-based payment collection solution has revolutionized mobile payments in India, with more businesses adopting this faster and cheaper means of collecting payments.
Cards have become a widely adopted payment method
Cards are one of the most widely adopted payment methods in the country. This mode of payment has gained traction mostly due to India’s push towards a cashless economy. Cards have been successful in capturing the middle and upper-class markets but have struggled to penetrate the lower-income groups due to high transaction fees and the lack of a physical bank account.
Bharat Bill Payment System is used for recurring payments
BBPS, an acronym for Bharat Bill Payment System, is an integrated mobile payment system designed especially for recurring payments like utility bills and mobile recharges. The system allows users to link their mobile numbers and bank accounts, making it easier to track and pay bills. The BBPS has simplified payments for Indian consumers, who no longer have to line up at offices to pay bills.
eRUPI is a unique mobile-based payment method
eRUPI is a special kind of mobile-based payment method that works like a voucher. It is a QR code or SMS-based payment system that allows users to pay for services using their mobile phones. Initially intended for government welfare schemes, the eRUPI voucher system has been more widely adopted in India due to its convenience and speed.
Pine Labs has been announced as a new payment aggregator
Pine Labs have received an in-principle authorization from the Reserve Bank of India (RBI) to operate as a Payment Aggregator. Payment aggregators are used to streamline the mobile payments process for businesses, allowing them to avoid the need to register with multiple banks.
Mobile-based payments have quickly become a way of life for many people and businesses. They offer convenience, speed, and cost advantages over traditional payment methods like cash or cards. With new solutions and technologies emerging daily, mobile-based payments will only continue to grow in importance as we move forward.