Online Payments: Facilitating Instant Recharge
Types of Electronic Payments
Did you know that in the period 2011-2015, electronic payment methods contributed $6.08 billion to the Indian economy? This figure, released by Moody Analytics, highlights the huge impact of online instruments on our everyday transactions. They not only provide convenience to the customer, they also help in the reduction of unreported cash transactions, while increasing the tax pool, and promoting financial stability and a healthy environment for business.
Online payments have become the favourite platform due to their fast speed, enabling speedy payments of gas, water or electricity bills, instant recharge of mobile phones, TV and internet connections, online shopping and other money transfers.
Modes of Online Payment
Prepaid Cards: These are cards where you can preload specific amount of cash to conduct various transactions. They can be loaded at the point of sale or online. A pin or signature is used to authenticate transactions. These are lucrative options for students, travelers and others for the huge discounts offered. They can also be specifically made for gifting or medical needs.
Net Banking: This is your online bank account. They can be initiated by registering with your bank for net banking through a valid phone number. From there on, with the help of a username, password and transaction code sent on your mobile, you can transfer money to different accounts through RTGS/NEFT methods, pay taxes or credit card bills, get an account summary and check your balance.
Debit/Credit Cards: A debit card is provided in conjunction with your bank account and can double up as your ATM card. For online transactions, they are easy to use and less prone to hacks due to the authentication method involving manual typing of the card number, CVV number and expiry date, as well as the OTP send to your mobile. Credit cards, on the other hand, allow you to draw credit and later pay the amount you owe with interest, if applicable. They are best for buying costly items and for short term money borrowing. Generally, merchants provide exciting discounts for using credit and debit cards for online bill payment, shopping or mobile recharge. You also get cash backs or free goodies.
Mobile Wallets: These help in managing your savings by keeping only a small amount in an account you frequently use for transactions. They are one of the quickest ways to pay and ensure secure payments due to the absence of a need to share sensitive bank details.
Electronic modes of payment seem well on their way to replace cash transactions. With greater regulatory norms they are gaining the public trust as well. So, which mode is your favorite?









