Though convenient, e-payment has not really caught the fancy of Indians. Why is it so? Read on to find out.
E-payment has become a rage worldwide due to ease of payment, convenience, and security it offers. You can be located anywhere in the world and send money to any part of the world by using e-payment systems like Paypal and eGold. You can also receive money from any part of the world within 24 hours.
In spite of the popularity of e-payment systems, the concept didn’t quite catch on in India. So even though Indian banks offer many e-payment facilities like Electronic Funds Transfer (EFT), ATM/Debit card, Internet banking, and Real Time Gross Settlement System (RTGS), you still find Indians standing in queue to pay their utility bills and taxes, withdraw cash, inquire bank balance, and use cash while shopping. Why does this still happen when India claims to be the leader in the IT field?
Reasons for failure of e-payment systems in India
Poor infrastructure: In order to make e-payment successful, the infrastructure used should be reliable. If the bank’s website is down, whenever I want to make a payment, I wouldn’t be interested in using it. Similarly each time I want to withdraw the money from an ATM, it should be operational. I won’t use it if there are frequent network problems.
Security: Security also becomes a major issue in case of making payments. It is very important that your payment reaches the intended payee. There have been instances when the banks have credited payments to the wrong accounts. Hearing these kinds of stories makes people worry about the security of transactions. Banks have started adopting security measures in order to provide safety to the e-payment transactions but fear still lingers on in the minds of the people.
Poor penetration of PCs and Internet: Though the number of PC and Internet users in the country is growing, they form a miniscule part of the entire Indian population. Besides, these users are limited to educated urban youth. But there are many who don’t have access to these facilities and don’t know the basic PC and Internet operations.
Unless the government, banks, and the IT industry take steps to work in tandem, it is difficult in the near future for e-payment systems to become popular in India.
Have you tried to make an e-payment transaction in India? Did it go through correctly? How does Indian e-payment system differ from the one in the country you live in?
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