Ever since India started its Digital India Movement, Indians’ adoption of digital payments has gone up steadily. Cashless transaction has been embraced across the board all the way down to chaiwalas with whom you can complete your payment using your phone, without fumbling for change in your wallet.
PayTM and PhonePe, that function using UPI are widely popular for daily transaction. There are many more options available in India beyond these.
A payment method is a way that you use to transact money as payment for a product or service. Cash, credit card, debit card, cheques, UPI etc. are various payment methods that are common in India.
Let’s look at an almost exhaustive list of payment methods you can use in India.
UPI – Unified Payments interface is a revolutionary system that has enabled Indians to access multiple bank accounts within a single interface. Users can seamlessly transfer money to businesses and other users using an app. All you need is an active bank account with a participating bank and you’ll be able to create a UPI id for yourself.
Just like an email, a UPI id allows people to send money directly to you, into your bank account. With 0 transaction fees, UPI is the most accessible payment method available for Indian smartphone users.
Popular UPI Apps In India
Digital Wallet, sometimes referred to as ‘e-wallet’ is a virtual account in which you can keep money to transact from. You could transfer money from your bank account to your digital wallet, which you can use as a payment method.
Why use a digital wallet, when you have UPI? Digital wallets operators such as PayTM, Amazon, Airtel etc. offer exclusive discounts for transactions using their digital wallets. You could avail those exclusive benefits by using such digital wallets.
Popular Digital Wallets in India
Internet banking, or Net Banking as known popularly is an electronic system that allows you to access your bank account and other banking services online.
Within Net Banking, there are a few ways that you can transact money.
Mobile banking is net banking, accessed through your bank’s mobile app on your Android or iOS device.
It is essentially the same thing as net banking, but it allows for some personalised features.
Cash is still a dominant payment used in India. As the use of digital payment methods are becoming more and more prevalent, Indians are getting more and more comfortable with not carrying cash.
AEPS – Aadhaar Enabled Payment System is a way Indians with Aadhaar card can do transactions. If your Aadhar card is registered with your bank account, you can start using this service.
How to use AEPS?
All you need to use AEPS is your Aadhaar card number. You’ll have to quote this number and initiate the transaction. As simple as that.
All banks in India offer debit cards when you open an account with them. You will be able to access funds in your account using this debit card. Withdrawing of funds can be done through either the same bank’s ATM or other ATMs.
When you can demonstrate that you have continuous income, the same bank will be interested in offering you a credit card too. Credit cards can also be obtained by opening a Fixed Deposit and pledging the same.
A prepaid card is an instrument that can be used just like a credit card or debit card. The only difference is that a prepaid card needs to be ‘recharged’ or loaded with money before hand.
It is not connected to your bank in any way and it provides an easy way to manage expenses especially for dependents in a family.
Banking instruments such as a cheque or DD is still very much widely used in India. They have their own benefits and use cases. Having said that, even businesses are slowly embracing digital payments for all their operations.
We are working towards bringing as much flexibility as we can in your Hubble experience. Currently we allow deposit and withdrawals through UPI.
Net banking and Digital Wallet payments are being worked on at the moment and we plan to release them any time soon.