After a year of struggles on all fronts, it’s safe to say that companies around the world found tremendous relief in only one thing – a digital shift. Digital transformation, especially the boom in payments industry, was essential to enable businesses, individuals and entire economies to cope with the enormous challenges posed by the COVID-19. Even after the pandemic is over, digital acceleration will not follow suit- it is here to stay.
Payment technology has played a crucial role in on-demand services, and this trend will continue the case with the digital transformation over the next year. Moreover, the free, real-time use of new and diverse payment methods is appealing for both merchant and consumer response options while challenging the industry ecosystem’s traditional payment value chain. As a result, the payments industry will pave the way for innovation.
The e-commerce sector, which is inherently more digital by nature, is increasingly adopting the business models to meet new consumer demands. To stay relevant in the future, physical retailers will have to respond to the pace of change and consider the new expectations and needs of their customers.
Digital transformation was essential to enable businesses, individuals and entire economies to cope with the enormous challenges posed by the COVID-19 pandemic.
Challenges and Opportunities Will Lead to Innovation in Payments Industry
Businesses are expected to deliver a better customer experience while balancing data security and fraud prevention across all channels. This is one of the biggest challenges they face, and traders need the right tools to find the right balance.
Diversified Financial Services With Fintech
India’s fintech revolution has ushered in a new era of banking for the more than 63 million corporations who had been on the fringes of financial services for most, if not all, of the time.
Whether it’s creating a standard connection between institutional banks and small businesses for access to financial services, or enabling quick disbursement of packaged loans at moderate interest rates, fintech and digital payments sector is powering various parties necessary for the economy.
Identifying and catering to new audiences to micro-startups that specialize in particular financial services, there are numerous opportunities for fintech startups in India.
The UPI Momentum
The Unified Payments Interface (UPI) has broken records in the past year, and this momentum is expected to continue into 2021. Not to many people’s surprise, UPI is extending beyond the urban level and starting to enter the rural Indian space too. The boom in e-commerce will facilitate the penetration of UPIs, even in rural areas due to its ease of use and interoperability.