Define Digital Payments (2024)

FAQs

What is meant by digital payment? ›

A digital payment, sometimes called an electronic payment, is the transfer of value from one payment account to another using a digital device or channel.

What is an example of a digital payment? Digital payments take a variety of different forms. Common examples include digital wallets, mobile payment apps, cryptocurrency, and tap and swipe payments carried out with physical credit or debit cards.

Moreover, digital payments do not require physical presence and enable customers to conduct remote transactions conveniently. Customers are more likely to opt for online payments when they can conduct transactions conveniently. Thus, more people can engage in e-commerce and transfer money electronically.

Digital payments include any method of transferring money or digital currency between two parties using digital payment technologies. This commonly includes several types of digital payments: Online electronic payment systems: Electronic bank transfers, eChecks, and wire transfers.

Digital payments contribute significantly to cost reduction for businesses. Traditional payment methods often incur hefty transaction fees, especially for cross-border transactions. In contrast, digital payments are generally more cost-effective, with lower transaction fees and reduced operational costs.

What is PayPal? PayPal is a online payment method that follows you wherever you go. Pay any way you want. Link your credit cards to your PayPal Digital wallet, and when you want to pay, simply log in with your username and password and pick which one you want to use.

One of the biggest drawbacks is the risk of theft or loss. Cash can be easily stolen or misplaced, while checks can be lost in the mail or stolen from a mailbox. In contrast, digital payments are more secure and can be easily tracked and monitored, reducing the risk of fraud or theft.

We asked U.S. consumers about "Biggest e-commerce payment brands" and found that "PayPal" takes the top spot, while "Skrill" is at the other end of the ranking. Find this and more survey data on most used online payments by brand in our Consumer Insights tool.

In India, popular digital payment options include UPI wallets such as Paytm and PhonePe, internet banking services, debit/credit cards, and AEPS.

How to make a digital payment? ›

Though digital wallets and mobile wallets are very similar, they aren't the same. Digital wallets are typically meant for online transactions, whereas mobile wallets are tied to a smartphone or wearable device. Both connect to bank accounts and credit cards for purchasing on the go.

For example, if a buyer pays via UPI on an e-commerce website or buys from his local grocer and pays him through UPI while purchasing at the store, both are digital payment transactions. There are various modes of digital payments, including UPI, NEFT, AEPS, mobile wallets, and PoS terminals.

Digital payments include credit cards, debit cards, e-check, and mobile wallets. By accepting these types of payments, you're giving your customers the payment options they prefer.

There are various types and modes of digital payments. Some of these include the use of debit/credit cards, internet banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI) service, Unstructured Supplementary Service Data (USSD), Bank prepaid cards, mobile banking, etc.