Arthshastra Indian Journal of Economics & Research

Open Access Open Access  Restricted Access Subscription Access

A Detailed Analysis of Selected Digital Payment Systems in India


Affiliations
1 BBA, Chartered Financial Analyst (CFA), USA (Pursuing), Shri Chimanbhai Patel Institute of Professional Training, Chimanbhai Patel Institute Campus, Opp. Karnavati Club, Next To Shapath IV, S.G. Highway, Ahmedabad - 380 015, Gujarat, India
2 BBA, UPSC Aspirant, Faculty of Business Administration (Formerly Known as N.R. Institute of Business Administration), GLS University Campus, Off. C.G. Road, Near National Handloom, Ahmedabad - 380 006, Gujarat, India

   Subscribe/Renew Journal


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 grassischolar_main 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.

Keywords

Digital Payments, Demonetisation, Retail Payments, Payment and Settlement Systems.

JEL Classification : E42, G2, G53, L5.

Paper Submission Date : October 7, 2020 ; Paper Sent Back for Revision : December 7, 2020 ; Paper Acceptance Date : February 10, 2021.

User
Subscription Login to verify subscription
Notifications
Font Size

  • Cathcart, W. (2020, August 1). Covid-19 underscores importance of tools that help alleviate poverty, build resilience. The Indian Express. https://indianexpress.com/article/opinion/columns/coronavirus-india-economy-poverty-digital-payment-bhim-upi-6533171/

  • India Brand Equity Foundation. (IBEF). (2018, September 5). India enchasing on digital payments. https://www.ibef.org/research/india-study/india-encashing-on-digital-payments

  • IBEF. (2019, January 4). Digital payment industry in India. https://www.ibef.org/blogs/digital-payment-industry-in-india

  • KPMG. (2019) Fintech in India - Powering mobile payments. https://assets.kpmg/content/dam/kpmg/in/pdf/2019/08/Fintech-in India%E2%80%93Poweringmobile payments.pdf

  • Mukherjee, P., Jain, A., & Mathur, K. (2019, December). Changing preferences: UPI's dominance over digital wallets in payments market. https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/point-of-view/pov-downloads/changing-preferences-upis-dominance-over-digital-wallets-in-the-payments-market.pdf

  • Razorpay. (2020, January 27). Digital payments in Delhi grew by 235% in 2019 - The era of rising fintech (4th edition). https://razorpay.com/blog/fintech-report-digital-payments-delhi/

  • Reserve Bank of India. (2019a.). Payment and settlement systems in India : Vision – 2019–2021. https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/PAYMENT1C3B80387C0F4B30A56665DD08783324.PDF

  • Reserve Bank of India. (2019b.). Report of high level committee on deepening digital payments. https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/CDDP03062019634B0EEF3F7144C3B65360B280E420AC.PDF

  • Reserve Bank of India. (2020). Assessment of the progress of digitisation from cash to electronic. https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=19417


Abstract Views: 527

PDF Views: 0




  • A Detailed Analysis of Selected Digital Payment Systems in India

Abstract Views: 527  |  PDF Views: 0

Authors

Shyam A. Kakkad
BBA, Chartered Financial Analyst (CFA), USA (Pursuing), Shri Chimanbhai Patel Institute of Professional Training, Chimanbhai Patel Institute Campus, Opp. Karnavati Club, Next To Shapath IV, S.G. Highway, Ahmedabad - 380 015, Gujarat, India
Harsh V. Jadhav
BBA, UPSC Aspirant, Faculty of Business Administration (Formerly Known as N.R. Institute of Business Administration), GLS University Campus, Off. C.G. Road, Near National Handloom, Ahmedabad - 380 006, Gujarat, 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 grassischolar_main 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.

Keywords


Digital Payments, Demonetisation, Retail Payments, Payment and Settlement Systems.

JEL Classification : E42, G2, G53, L5.

Paper Submission Date : October 7, 2020 ; Paper Sent Back for Revision : December 7, 2020 ; Paper Acceptance Date : February 10, 2021.


References





DOI: https://doi.org/10.17010/aijer%2F2021%2Fv10i1%2F155366