We, as human beings have transitioned from barter systems to transacting in cash, and now, after several years of technological advancements, we are able to send money within a couple of clicks on our smartphones. Who should we thank for making our lives this hassle-free?
Well, financial technology also known as fintech innovations has helped us a great deal with our day to day transactions. They have immensely impacted the Indian business ecosystem. Let’s take a glance at these.
Earlier, we were required to insert cards in a machine and enter our pin in order to clear a transaction unit. Now, NFC (Near Field Communication) cards arrived in the market and made smaller transactions at food courts and shopping malls convenient as it took less time. These cards just need to be brought near a POS machine and the amount to be paid automatically gets deducted. While we’re in a situation where physical contact needs to be limited, NFC cards help abundantly to reduce the contact between customers.
First used by the automotive industry in Japan in 1994, a QR (Quick Response) code is the biggest revolution in the field of digital payment. Today, everybody from an established clothing brand to a local street food vendor uses it to settle their everyday transactions.
A QR code can be easily scanned and is very secure. It leads to a seamless experience when making payments.
As a precaution against the novel coronavirus, restaurants across cities have replaced their physical food menu with a QR code enabled digital menu. It helps the customer avoid any unnecessary contact with a physical menu card.
In the middle of a global pandemic, video KYC has helped banking institutions continue to build their customer base without getting them physically waiting in queues at a bank.
This method has allowed the digital enrolment of customers in banks. Traditionally, people had to go to a bank to start an account, now it can be processed online. All the necessary details like pictures of documents, photographs, etc are sent digitally to the bank by the customers.
Multiple banks are using this method to enroll customers. This process is only going to get more popular as it’s the need of the hour.
A method developed in India, AePS (Aadhaar-enabled Payment System) uses biometric details to function. A customer can do everything from depositing cash to getting a mini statement with the help of this government brought initiative.
This process will work with the customer’s Aadhaar number. It will help lesser educated people, especially poor labourers and migrant workers. This will function across all banks and the transactions won’t be limited to some particular banks. It is one of the safest and most user-friendly methods available.
Availability of instant settlements 24/7
The instant settlement method has hugely improved the way the Indian payment ecosystem functions. In India, NEFT (National Electronics Fund Transfer), IMPS (Immediate Payment Service) and UPI (Unified Payments Service) is the most commonly used way to get instant settlements.
This has helped people transfer funds whenever they want to, directly from their bank account to the other person’s, without the need of a prepaid wallet. This ensures timely payments among vendors and has led to improved cash flow.
And the settlements have gotten faster, it has helped build a more secure and happier relationship between business partners who send the money on time without the excuse of waiting for a suitable time.
So, with this, we saw the top 5 fintech innovations that have massively impacted the Indian business ecosystem. And for the better, can you imagine carrying all that cash if we didn’t have the convenience of QR code enabled digital payment methods? We at slice could never! Thanks to the ever-growing technology that has made our lives comfortable and continues to surprise us with more innovative systems.