As the catastrophic human costs of the COVID-19 are coming into light, taking care of our family, finances and future has become imperative. The coronavirus related lockdown has taken the entrepreneurial world by surprize. The temporary shutdown of services has caused disruption in logistics, over-stocked supplier inventories, over-due vendor payments thereby causing strain on the finances of many enterprises. To manage cash flows in a sustainable way, entrepreneurs have resorted to accepting digital payment methods. Adopting these online methods of payments also aims to create a digitally empowered economy that is ‘faceless, paperless and cashless’. Some of the reliable digital payment options are:-
- Banking cards- Cards are the most widely used payment method which come with benefits such as security of payments and convenience. Some of the reputed card payment systems are Visa, Rupay and Mastercard among others. Internet and mobile banking using cards are beneficial to businesses; transferring funds via RTGS or IMPS, opening new fixed deposits or closing an account, all can be done using this method.
- UPI- It is an interoperable payment system through which any customer holding any bank account can send/receive money through a UPI based app like the BHIM. The service allows a user to link more than one bank account on a UPI app on a 24×7 basis on all 365 days a year. These features make it very endearing to entrepreneurs.
- Mobile wallets- This is a virtual wallet system is used widely too. It uses ‘near field communication’ NFC to transmit information from a mobile device to a payments reader. Not only is it secure, but also very fast. This method stores bank and card information in an encoded format to allow secure payments. One can add money to the e-wallet and use it to make payments when needed.
- PayPal- This app allows you to make payments using a variety of methods including PayPal Cash, a bank account, PayPal Credit, debit or credits cards and reward balance. This option also enables acceptance of money from almost anyone with an email address! It is fast becoming the most well-known and opted for program for digital payments in India.
- Square – If you have clients, it can be an endeavour to receive payments, when relying on paperwork, cheques or taking credit card numbers over the phone. Using Square, can make the task easier. Square is designed to help businesses accept credit card payments and to help consumers transition to a cashless lifestyle. It is fast becoming one of the leading players in the emerging world of mobile payments.
Where these formats of payment systems are proving resilient and reliable and continue to enjoy a high level of trust from general public, it is important to be alert towards online fraudulent activities too. Following guidelines being broadcast by banks, looking for message alerts for each transaction and not sharing one’s OTP or Pin number will ensure s