Digital transactions become preferred mode of payments

Aurangabad, June 1:

Use of digital payment apps among citizens has seen a two-fold rise in the past few months. Amidst Covid-19, payments through BHIM app, PhonePay and Google Pay followed by debit cards and credit cards, have become a preferred mode of payments to citizens. Bankers said that a large shift towards digital payments is because people are now more aware of digital transactions.

With the imposition of the second lockdown, digital payment saw an increase. However, the UPI and IMPS transactions touched an all-time high since people preferred to use digital mode. According to a senior official of State Bank of India Rajesh Kumar the share of alternative channels in the total transactions for SBI increased to 70 per cent since last year, mostly which are transactions till Rs 5,000 and below. We are seeing a lot of growth in the bank’s technology platform and other digital payment apps. This is because it is more convenient to use than cash. It is much safer and can be done with just a click. Similarly, many people still avoid handling cash and visiting ATMs in fear of covid," he added. Similarly, during the lockdown, traders changed their approach and started accepting online payments. Even small businesses have started using online payment apps like Google Pay, Phone Pay, BHIM and Paytm to make cashless transactions a priority. For this, banks are also helping traders from time to time to prioritize online transactions. Banks have also reduced charges on digital transactions.