CATEGORY - FEATURES & UPDATES

Payment: Definition, types, and trends

Features & updates - 14 Feb, 2024

Table of Contents

What is payment?

In simple terms, payment refers to the voluntary transfer of money or any valuable item (including digital forms) from one person (payer) to another (payee) in exchange for goods, services, or to fulfill a legal obligation.

Payments: From barter to bits

Imagine swapping eggs for milk or pottery for cloth. That’s how people bought and sold things before money. Cool, right? But it was sometimes challenging. That’s why we invented coins and bills. Then came debit cards, credit cards, and even online payments! Nowadays, things are moving super fast in India, thanks to digital payments.

Payments type available in India

Cash: Cash is still king for many stores, but it comes with risks. While it’s easy to use, it can be lost, stolen, or damaged. Small businesses often choose cash for lower fees, but larger ones may need extra security for larger transactions.

UPI: Send money instantly with just a phone number! No cash, no fuss.

Digital wallets: PhonePe, GPay, Paytm… they store your money on your phone so you can pay, recharge, and more, all with a tap.

Mobile Phones: Tap, pay, go! Your phone now replaces your wallet. Simply tap it at contactless terminals and your info is securely shared for quick payment. No more fumbling for cash - just a convenient and light way to pay.

Credit/debit cards: convenience for consumers, fees for businesses. While these cards offer easy payments, businesses accepting them face fees from both service providers and their banks. These fees can be fixed or a percentage of the transaction.

Mobile banking: Manage your bank account directly from your phone, even if you live far from a branch.

QR code payments: See those funny squares at stores? Scan them with your wallet app and pay in a flash.

Wire Transfers: Wire transfers and ACH payments offer secure, speedy ways to manage finances. Perfect for larger transactions, they get your money where it needs to be, fast.

Checks: Checks aren’t outdated! For secure payments, consider cashier’s or certified checks. These bank-guaranteed options ensure funds are available, offering peace of mind for both parties.

Payments features:

Faster: Funds are typically transferred immediately or within a single business day.
Secure: Ideal for high-value transactions or situations requiring a high level of security.
International: Can be used for international payments.
Fees: Typically come with fees, which can vary depending on the bank and amount transferred.

Why India loves digital:

Millions more people are using banks now, thanks to digital payments! This means more money in people’s pockets and a more robust economy. Plus, India loves smartphones, and digital prices are perfect for them. The government is also helping by making it easier and safer to pay with your phone.

The Future of payments:

Fingerprint and face payments: No more remembering passwords! Just use your face or finger to pay.
Blockchain or crypto: This super-secure technology could make international payments and banking more accessible for everyone.
Super apps: Imagine one app for everything – payments, messaging, even food delivery! These apps are coming soon.

Choosing the right way to pay online:

There are so many options! Here’s how to pick the best one:

Convenience: How easy is it to use? Can you access it wherever you are?
Security: Is it safe? Use two-factor authentication whenever possible.
Amount: Small things? Use your wallet app. Big things? A debit or credit card might be better.
Where You Shop: Make sure the store accepts your payment method.

How Easebuzz is helping businesses to thrive

Easebuzz is like a payment superhero for Indian businesses. They help companies of all sizes accept digital payments, from credit cards to UPIs.

Easebuzz payment solutions also offer the following products:

Payment Gateway: Instantly accept all major digital payments on your website, app, or social media.
Payment Links: Share a link and get paid instantly, even without a website.
Recurring Payments: Make it easy for people to pay monthly or yearly.
Invoicing and Tracking: Create professional invoices and see who paid you in real time.
QR code payments: Let customers pay with a quick scan.
Marketplace Payments: Manage payments for everyone who sells on your platform.

Benefits for businesses

More sales: Accepting all kinds of payments means more customers and significant business.
Faster payments: Get your money right away; no more waiting.
Lower costs: No more cash handling fees and accounting is easier.
Happy customers: Make it easy for people to pay you, and they’ll return for more.
Safe and secure: Easebuzz protects you from fraud.
Data insights: Learn how people pay you and make better business decisions.

Easebuzz: Made for India

Easebuzz speaks your language, literally! They have support in many Indian languages. They also work with popular Indian wallets and UPI apps. And they follow all the rules to keep your money safe.

More than just payments

Easebuzz can also help you manage inventory, track orders, and grow your business.

Conclusion

Easebuzz isn’t just a payment company; they’re your partner in success. So, if you’re a business owner in India, try Easebuzz and see how they can help you take your business to the next level in the exciting world of digital payments.

FAQ’s

What are some common ways to pay in India?

While traditional methods like cash and checks still exist, India has seen a significant rise in digital payments. Here are some popular options.

Digital Wallets: These mobile apps like PhonePe, Google Pay, Amazon Pay, and Paytm store your bank account information and facilitate instant payments through UPI (Unified Payments Interface).
Debit & Credit Cards: Widely accepted for online and offline transactions, offering convenience and rewards programs.
Net Banking: Transferring funds directly from your bank account to a merchant’s website using secure login credentials.
UPI QR Codes: Scannable codes displayed by merchants allow quick and contactless payments using UPI-linked apps.
BHIM: A government-backed app enabling UPI payments directly from your mobile, laptop, or desktop.

Are there any other payment methods used in India?

Yes, some less common options include:

IMPS (Immediate Payment Service): Transfers funds instantly between bank accounts, though charges may apply.
NEFT (National Electronic Funds Transfer): Transfers funds within India typically within 24 hours.
RTGS (Real-Time Gross Settlement): Transfers large amounts instantly, but incurs higher fees.
Mobile Wallets with Stored Value: These wallets function like prepaid cards, loaded with funds beforehand for making payments.

Why are digital payments becoming increasingly popular in India?

Several factors contribute to the rise of digital payments:

Convenience: Easy to use, accessible through smartphones, and often involve contactless transactions.
Security: UPI and other platforms offer secure authentication methods like PINs and biometric verification.
Government Initiatives: The Indian government actively promotes cashless transactions through campaigns and incentives.
Wider Acceptance: Merchants across various sectors are increasingly adopting digital payment options.

Why We Pay: Understanding the Purpose of Payment?

The “Purpose of Payment” section on checks and payment forms isn’t just a formality. It helps companies and organizations understand why you’re making a purchase. This information is crucial for their internal audits and record-keeping, ensuring everything aligns with their financial practices. So, next time you see this section, remember it plays a vital role in maintaining financial transparency.