Electronic Payments: Transformation in Payment Style and its Growth in India

Abstract

In the present scenario, the way of performing financial transactions by the people is entirely transformed. Consumers briskly switch to cashless payment methods.          E-Payment is an innovative and digitalized payment service that refers to payment for financial transactions over the internet. It can be done through cards, with the use of mobile apps, at POS and through P2P transfers. E-modes are operated for different reasons for instance purchase of goods and payment of services, transfer of money, recharges, bill payments, ticket bookings etc. Today the way to shop and pay for it has undergone a complete change worldwide. Electronic transactions in India are increasing year after year and competing with other developed nations in terms of the number of transactions done through e-modes. In the growing and advanced ecosystem of digital transactions, the main drive to conduct this study is to analyze the usage trend of e-payment modes and the overall growth of e-payments during the period of study. The study is based on secondary data that is collected from different sources. The study reveals that demonetization and Covid-19 had a great impact on the usage of the e-payment modes and reported a CAGR of 56.31% in the country in terms of volume of e-payments over 5 years. The proportion of electronic transactions has increased sharply both in terms of volume and value of transactions. Debit and credit cards are always in use in the long run but UPI shows a great hike in its usage from its introduction. In a very short time span, UPI has created its place in the digital market.