Revolution in digital payments


Glitzy and showy smartphones are no more the heart of India. Instagram and Snapchat are the true heart of the nation, which are connected by enduring, evergreen and reliable feature phones.

Feature phones can last with a single charge for many days, are reasonably priced so that they can purchase them without availing to EMI or any financial burden. Hence, it is no surprise that the next wave of mobile payments in India will focus on the market segment which is loyal to feature phones.

The emergence of voice-based technology will revolutionize the mobile payment system in India. The voice-based assistants, Siri and Alexa, will drive the digital payment system in the nation.

The aim of public and private stakeholders is financial inclusion for the rural segment. The customer segment, where the smartphone dominates, have access to various payment alternatives like AEPS, Solar ATM and SMS. Thus, voice-based technology would help all stakeholders to achieve their agenda.

UPI, AEPS, and Fastag have strengthened the mobile payments process.

Now, the National Payment Corporation of India (NPCI) is testing voice-based systems to enhance the payment system through smartphones, especially in places where internet connectivity is an issue.

Companies like Tong Tag have enabled contactless payments with the help of encrypted sound waves. Paytm has introduced Sound Box for digital transactions. A payment credit is heard loud to all the parties, taking the digital payment system to a three-step authentication process (payment is confirmed even after receiving SMS).

The emergence of voice-based technology will burgeon online payments. Further, internet-based feature phones such as the Jio phone will set the reach of digital payments to the smartphone segment.

The feature phone will be a constant support to the smartphone. The loyal-user base is showing no signs of dwindling. People are moving back to feature phones due to digital detox or creating a safe environment for their children, to reduce binge-watching and online games.

The voice-based technology will further pave the way to financial inclusion and enhancement of existing security standards. The existing players need to design API Stack, keeping in mind the digital inequality in India. Also, safety and ease should not be compromised with the emergence of high-tech solutions.

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