Over the last decade, the payment market has undergone a seismic transformation. Notable technologies and programs have modified the way India transacts. When India was hit both by a big bank failure and a nationwide lockdown in March, bankers rushed to stuff cash machines with notes, fearing runs from rattled depositors. The market for cash has in turn been fairly diminished. Operation hummed along with the Unified Payment Interface (UPI), a network of online payments on its way to being the financial lifeline of the world.
Three major banks or shadow banks have imploded over the last two years. The extreme economic uncertainty triggered by COVID-19 would only render the risk of poor loans heavier for borrowers. UPI has flourished against the dark backdrop. Google wrote to the Federal Reserve in November asking it to back a parallel plan for America. In December, the Bank for International Settlements reported that India’s digital financial system has the "potential to change both developing and developed economies"
E.g. the government's move toward secure mobile payments system by measures such as FASTags, the implementation of interoperability on wallets, cash recyclers, or developments by FinTech players such as RFID-based fueling devices, all-in-one retailer QR code, and UPI QR payment- The next big thing based cash withdrawals on ATMs; digital India has a quite exciting future.
- INVISIBLE PAYMENTS
Invisible payments allow customers to make payments when they avail of services without any manual and overt interference. Consumers are charged with their prior consent for the services they use under the defined cap set by them or for using different services.
"Payment has two legs-authentication and authorization," Gopal explained. India is a compulsory second-factor authentication (2FA) whereas the US is a 1FA. Payments in 2FA nations have some frictions largely legislated to ensure more security, transaction security, to reduce fraud. How do we remain 2FA compliant while maintaining frictionless payments or transparent payments?
Lots of innovation happening ... RBI has released guidelines on tokenization ... Recurring UPI mandates is the next big thing we’re all looking forward to ... "Mathur added.
Although some claim payment should still be completely invisible. Naveen Surya, president of India's FinTech Convergence Council & Payments Council, said, "It depends on how you define invisibility. Items can become very easy and open in the future but it is extremely doubtful that anything intangible can.
- TAP-AND-GO PAYMENT:
Tap-and-go payments are also referred to as contactless cards and are often faster and more convenient than dipping a card. Contactless credit and debit cards, along with a contactless chip and RFID antenna, use a mix of EMV chips.
"Tap-and-pay is a good trend (card/phone)" Moghe said. In that way, India is going forward 15-20 percent of our transactions are contactless.
The purpose of tap-and-go transactions was to end the time-consuming process of pin code and authorization, and eventually speed up payments. Use has steadily grown.
Tap-and-go payment is rampant in many countries — Singapore and South Korea —. NPCI has also initiated a tap-and-go payment pilot project in several cities in India.
- BIOMETRIC AUTHENTICATION:
By using biometric technology, the need to remember a password or PIN to access our devices has been conveniently eliminated. Being able to use biometric security to allow Google Pay or Apple Pay has made the purchase process trouble-free. Biometric authentication has many advantages such as ease, safety, accuracy, and speed.
Harshil Mathur, CEO, RazorPay said, "There's going to be a time when the PIN will also go away and biometrics, voice, and other criteria will be used to determine the customer's identity and it will happen smoothly. There has always been plenty of creativity. RBI has issued guidance on tokenization; the next big thing we are all looking forward to is recurring mandates on UPI.
- FACE RECOGNITION:
Most of the payment systems have been weaved around Mobile till now. Yet face-recognition payment technology is built without cell phones to enable payments. The payment method has already been introduced by China.
Customers need to stand in front of the camera-equipped POS rig. The camera captures the customer's image and transfers payment.
This mode of transfer of payment is very quick and cost-effective payment solutions without any hurdles.
Aadhaar has already incorporated the cardholders' face and iris, this can be a great advantage as and when Indian Payment companies begin to accept face recognition payments.
- VOICE PAYMENTS:
Following Alexa’s success, financial institutions and Fin Techs are making voice payment the next big thing. Many financial institutions already use voice technology to serve the customers through bots when lending. The same goes for exchanging the payments.
- Voice Payments are being handled by Amazon Pay, Google Pay, and Apple Pay.
- Speech payments are known as the most smooth, unshakeable, and next big thing in payments.
CONCLUSION:
Online awareness and the proposed opportunities will encourage people to use online payment systems. As more and more people adopt digital payment methods, greater accountability and taxation will be introduced, thereby boosting economic growth and creating a transparent economy.