Things One Must know about Payment Apps

Banking CIO Outlook | Friday, November 30, 2018

From the barter exchange system to settling financial transactions by cash or checks and the latest, digital payments, the mode of payment has traversed a long path. An apparent effect of digitization, an increasing number of users have eased into the proliferation of mobile apps as new ones are launched nearly every single day. To make things easier and inevitably better, developers constantly work on the upgrade or refurbishment of existing applications.

Payment apps range from mobile commerce apps, cryptocurrency apps, digital wallets, and peer-to-peer (P2P) payment platforms. P2P payment apps are all the rage now as everyone and not just millennials and Gen X is using these mobile services for anything from utilities to rent and much more.

Mobile Banking Services

With the ability to transact right from a smartphone, there is no longer the need to spend excruciatingly long queue times at bank branches for common transactions. At just the touch of a button, mobile banking apps offer a variety of internet banking options such as fund transfers, account statements, dues settlements, credit card EMI conversions, savings deposits and loan applications.

To make life even easier, there are additional functions of mobile banking apps that include recharge options, bills payments, reminders for monthly or annual payments, and life insurance purchase options. For frequent users, the availability of offers on shopping, flight discounts, and debit/credit card upgrades keep popping up on the app, making it even more alluring.

Unified Payments

To facilitate the instant transfer of funds between two banks, there is now a digital payment system called the unified payment interface (UPI) that links multiple bank accounts. The system offers seamless payments without the need to wait for the addition of a beneficiary account. With popular third-party apps like Tez (now Google Pay) and PhonePe, and banks providing UPI-based apps, options are aplenty.

Mobile Wallets

Taking into account obvious security concerns, people are often jittery about linking their plastic payment cards on merchant websites. For such issues, the solution is mobile wallets like Paytm, Mobikwik, and Freecharge. A virtual platform for storing money, a mobile wallet offers cashless transactions online for shopping, payment of bills, booking movie tickets, and more. For an even better user experience, most of these apps have added the option of fund transfer through UPI. 

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