E-Payment System – The Unsung Hero Of E-India

In the next five years, digital payments will be a game-changer for the domestic e-commerce market. Cash on delivery tends to be the key form of payment for current e-commerce players, but those who pay online are better as they stick to the e-payment system. In a cashless world, electronic money is one way to work. Digital wallets or e-wallets seem to be the future of finance, along with credit and debit cards.

The electronic payment system provides greater processing speed and conveniences compared with credit and debit cards.


Over the last decade, the payment sector has undergone a seismic transformation. Notable advances and programs have changed the way India transacts.

Firstly, the government’s move toward digital payments through initiatives such as FASTags, the implementation of interoperability on E-wallets, or inventions by FinTech players such as all-in-one merchant QR code, and UPI QR-based cash withdrawals on ATMs; digital India has a very promising future.

The electronic payment system is a fast and easy way to pay online. You can provide multiple payment options to your customer including credit card, mobile wallet, etc. One of the advantages of E-payments with E-wallets is the fact that customers without a bank account can pay online.

Between delivery and payment, there is no waiting period. Payments take place in real-time without any waiting. Many middleman charges face elimination and consumers can enjoy heavy discounts. Money in digital wallets is secured, layers of firewall protect digital money. This is now more reliable than having cash in pocket.

In the battle against corruption and organized crime, cashless innovations i.e. electronic money can be a big advantage.

Worldwide, there are 1.4 billion people who have to deal with income of less than ₹100 per day. At the same time, robbery, corruption, bribery, fraud, and tax evasion systematically snatch rocks from developed countries.

Linking everything to an end-to-end e-payment system a cashless world, money flows will be transparent.

Any amounts that would appear outside of that context could be identified and investigated immediately. This will narrow the scope for law enforcement and forensic accountants, making secret money easier to track and recoup.

Electronic payment prevents the terrorist arena from being financed because illegal activities cannot be financed through an online platform.

With tightly protected networks, enabling any cybercrime to take on a toll on society is almost impossible and thus prevents money laundering from impacting the entire economy.

Cash isn’t the king anymore. Indeed, more cash-intensive economies continue to slowly develop and lack of major financial advantages.


E-money has been a game-changer since its introduction in 1997.

Electronic money was the great factor that allowed the historical bank dominated payments industry to expand into non-financial services companies.

For the first time, companies need not seek financial approval. This will encourage the technology industry to enter the arena, bringing in the best developments ever to date.

Without that, no Paytm nor E-wallet Systems such as Google TEZ, nor PhonePe would have existed.

Such businesses have powered the creativity of the industry with e-money, pushing the banks to do likewise.

Though the E-payment system is yet to fully overtake India’s financial transactions, they are found their way into the Indian psyche since demonetization.

This change became apparent in some of the data showing a substantial rise in the country’s acceptance locations from 1.2 million in December 2015 to over 5 million by the end of 2018, nearly three times growth in less than 3 years.

As of September 2018, E-payment transactions through E-wallets and digital cards numbers have risen dramatically from 44 million respectively to 990 million, reflecting a preference for cashless transactions, according to RBI.

FDI and private-sector tech companies are collaborating to bring in the innovation in the electronic money system. With this, the emerging e-payment sector has been receiving investment in huge funds.

Indian government officials made social security pension payments by digital smart cards. These are majorly known as Digital wallets or E-wallets instead of manual cash, bribe demands were reduced by 47%, and the incidence of ghost recipients dropped by 1.1%.

India has already saved $2 billion from its fuel subsidy scheme. This is the biggest cash transfer system in the world, by directly paying cooking gas customers into their bank accounts.

Fastlane, FASTags, NCMC, and QR code – these are all important digital initiatives that seek to accomplish one target, promote travel, and deliver end-user secure and seamless electronic payment system expertise.

NHAI chairman reports state that 86.2 crores are the highest toll collections ever in January 2020; 50 crores of which are in association to FASTags.

RBI is considering creating a sovereign digital currency in the country and will release it accordingly.

Though recent government measures, such as the removal of MDR on RUPAY cards and the BHIM UPI platform, are expected to increase customer acceptance points and bring more people into the digital India sphere.


The overall transaction volume of digital payments in 2019, according to Statista, amounts to US$ 64,787 million, in India.

Customers now don’t need to provide their card information for digital payment (epos link), as merchants can accept bulk payments, split payments with just one click (WhatsApp link). And it’s all possible because E-payment system tools are used.