All you need to know about Cashless Payments
First, it was demonetisation, and now it is the pandemic – these two catalysts have entirely changed the way we conduct our financial transactions. With digital payment systems gaining momentum, India is gradually transitioning into a cashless economy. From buying groceries to paying utility bills, cashless payment is soon becoming the most preferred payment option for many. If you are still on the fence about ways and reasons to go cashless, this article is for you.
There is no dearth of alternative payment methods available today, from credit or debit cards; to electronic payment apps; to mobile wallets to cryptocurrencies. The most popular types of cashless payments include the following:
All it takes is one swipe of your credit or debit card to shop for your favourite items offline. You can use these cards for online shopping as well. Banks issue cards with enhanced safety features like embedded chips and OTPs for authentication, making card transactions safe.
Mobile banking gives you the freedom to access your bank accounts 24/7. Bank apps allow you to check your account balance, transfer funds, pay utility bills, etc. Furthermore, your account information is not stored on your device. This makes mobile banking safe and secure to transact.
A mobile wallet is a novel way to carry your cash digitally. All you have to do is to link your debit or credit card to your mobile wallet application. Once that is done, you can transfer money to your mobile wallet to make any transactions. So, instead of carrying cash or cards, you can just bring your phone to shop both online and offline.
Unified Payment Interface (UPI) is a popular mode of digital transaction. It is quick, secure, and hassle-free. With a single click authentication, you can make easy transfers via UPI with the virtual payment address of your beneficiary.
There are many positive reasons to move cashless. Here are the best ones:
As long as you carry your credit/debit card or mobile phone, you can have instant access to all your cash holdings. It saves the hassle of carrying hard cash everywhere.
Several bank cards and mobile wallets provide cashback offers and discounts on digital transactions. Also, you can take advantage of reward points and loyalty benefits to redeem your purchases. Opting for cashless payments lets you save on railway tickets, highway tolls, buy insurance products at discounted prices.
With cash transactions, you must maintain endless ledgers and may fund it cumbersome to track payments. With digital payments, all transactions are recorded on the applicable payment modes, helping you to keep a tab on your expenses.
There is a popular adage ‘Cash is king’. But with India’s move towards a cashless economy and small businesses to retail giants opting to move cashless, it is only a matter of time that a cashless revolution will dethrone king cash.
Happy shopping with the DBS Bank debit card! Download the app to open savings account instantly and get your debit card!
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.