FinTech companies are innovating and introducing many ‘alternate’ payment options.
Technology can sometimes be overwhelming, but when it comes to payments and transactions, it proves to be a great boon. FinTech companies are innovating and introducing many ‘alternate’ payment options to cash and cards that are user-friendly, safe and convenient.
Be it sending money across the country or the person sitting opposite you; be it transactions in lakhs or a few hundreds, the need to visit banks has almost become negligible. Here is a quick compilation of the latest in alternate payments that one can explore.
Aadhaar Enabled Payments: Once your bank account has been linked with Aadhaar card, you can start making Aadhaar enabled payments, provided the merchant is equipped to accept Aadhaar enabled payments. To receive payment, the merchant will enter your Aadhaar number, amount and ask for authentication using your fingerprint scan. On approval, the amount will get debited from your account and credited to the merchant’s bank account.
Bharat QR Code: A really swift way of making payments, consumers can scan the QR code using smartphones. All one has to do is download the bank app of his/her account and generate a virtual card to start scanning.
Micro ATMS: These are your miniature ATMs. They look like a normal Point-of-Sale (POS) machine and can be used to withdraw cash using a debit card. Merchants who would like to increase their footfalls can offer this as an additional feature.
UPI: Unified Payments Interface is a mode of digital payment using smartphones. You can download the UPI app, register the bank account, create an ID and generate an MPIN which will authenticate all your transactions. To send or receive money, all you need to do is input the other person’s UPI Id.
Net banking/ Mobile banking: Simply put, this is your virtual bank. All you have to do is register with the e-banking facility of the bank. Using the user id and password, one can make instant transfers using IMPS, NEFT & RTGS platforms.
M-wallets: These are payment platforms offered by banks & non-banks. As the name suggests, it is a digital wallet in your smartphone. You can simply download the app, register using mobile number and link it with the bank account. You can then recharge the account and make payments or shop through the mobile wallet app.
SMS Based Payments: Merchants can accept payments from remote locations by simply sending a SMS with the payment link to their customers. Having registered with a company providing this facility, merchants can send a link with details of the payment and customers can pay using net banking, UPI m-wallets, and also through credit and debit cards.
Author Deepak Bhutra is CEO of India Transact Services Limited. Views expressed in this article are his own.