6 ways you can benefit from digital payments through mobile banking

Digital payments through digital cards help in getting reward point for making every purchase either through swiping them at POS terminals or doing an online purchase. Moreover, doing transacting through financial apps also provide you cashback offers for up to 10-15% which is, however, capped to an amount certain limit. You can avail such benefits while e-shopping, especially during festive seasons.

Payment of Utility Bills

The various apps have now become a one-stop shop for paying up the bill. One can easily pay their mobile bill, electricity bill, or any other utility bill using their smartphone.

For customers, digital payment systems provide greater convenience, as they are available all time, with little or no costs attached. Today, utility bills or fund transfers can be done on the go in a few seconds,” said Radhika Binani, Chief Products Officer, Paisabazaar.com.

Availing discounts coupons

Making payments through these apps helps you in getting several discount coupons which in turn increases your purchasing power, as you can buy more stuffs for yourself by availing discount coupons. This is happening because most of the transactions are getting transparent these days. “Together, these digital payments app are definitely game changers, since they address the core issues that the one faces, viz. revenue leakages on cash, the cost of financial inclusion and low digital literacy, by leveraging the main strengths of the country viz. mobile penetration, flourishing private enterprise and foreign investments,” Ritesh Raj Saxena, Head of Savings and Digital, IndusInd Bank said.

 24x7 availability of banking services

Using these financial apps like BHIM, UPI, wallets, etc., you can easily do transaction anytime and from anywhere. Availing not only financial services but also, nonfinancial services has become convenient using your smartphones.

Products such as *99#, IMPS, UPI and Bharat QR have made banking transactions accessible 24*7, not only for the urban banked but also for the semi-urban and rural banked. For the bank as well as for citizens the way forward is digital,” says AJ Vidyasagar, President Retail – Lakshmi Vilas Bank.

Maintains payments history record

One of the best benefits which an individual gets is the track of the transactional record. Even doing small transactions at a merchant will get recorded and can be used for the referential purpose in future, if needed. This will also align your household expenses on monthly basis.

Adhil Shetty, CEO, BankBazaar.com said that apart from the convenience, it offers to the customers, financial institutions, and the regulators, the change in favour of digital processes brings several benefits. “The primary benefit is the enhanced transparency and accountability when it comes to financial transactions,” he said.

 Reduction in payment cost

These payment apps have also proved to be a valuable extension to self-service banking and are a boon to customers as well as banks. Therefore, with India taking giant strides towards a less-cash economy, the digital payment system is also reducing various costs. Many banks have now started reducing their transactional charges while doing small payment transfer digitally.

“Faceless, Paperless, and Cashless” - The digital payments mechanism is a flagship program of the Government with a vision to transform India into a digitally empowered society. With this individuals can envisage the bright digital future of the country which can benefit them the most.

However, there is still a lag in spreading financial awareness in remote areas which once get sorted out will benefit masses on large scale.