Credit/Debit Card, Net Banking, UPI, Cash etc are all our daily companions when it comes to transferring money. To Pay our Educational fees or Entertainment or Donation we use either of them. To be frank we tend to deliberately use cash more often than any other. Our young generation is focused on digital methods like UPI, Cards or Net Banking; which indeed is the most recommended option under private or commercial usage.
The word Best in the title is being defined the best in
- Long Term
- and most important of all Security.
Analysing one by one:-
When estimating the best we have analysed these payment methods thoroughly in practical scenarios in different parts of India. Thanks to all our participants for providing their encouraging statistics.
The most widely cashless payment method ever used all around the web and retail stores is credit/debit card. A small plastic/metallic card always kept in our wallets is the first and best companion after cash. Losing or destroying card charges you a minimum net for replacement with your money being safe in your bank account.
|Remark||Quite Convenient to use||Requires ATM, PoS etc. for transactions||Average to High in Urban areas. Zero to Low in Rural Areas||Satisfactorily reliable||Fairly good||Yes, around 5-15 years or more||High. OTP or PIN based|
Overall Average: 3.60
Samsung Pay is a new player in the Indian Market. You just need to import your card details in the software and it becomes a proxy of it adding extra layer of security. It works offline pretty well. A history of transactions made through the app is always ready for you.
You must have heard of payment gateways like VISA, Mastercard etc. Like them India has its own localised payment system named RuPay. It offers nation based transactions at no or a very minimal price. Rewards and prices aren’t exempted. Jan Dhan Yojna account holders under Indian bank gets Rupay Debit Card by default.
|Remark||Fairly Convenient||Requires NFC/MST enabled ATM, PoS etc. for transactions||Low in Urban areas.||Moderately Reliable||Good||Yes||High. (+Optional PIN based)|
Overall Average: 3.61
A Banking Service started to replicate bank facilities to end user became a very widely used payment option very soon. During its birth, people only had a ATM card to transact cash out of ATMs and no other method of online transfers. It came as boon to people. Though facing early instability issues, people used it and promoted these services. Bank thereafter tried their level best to sort all of the issues. By late 2017, we are being offered with very advanced facilities like in other international banks.
Payments through Net Banking is theoretically faster than cards(if auto-fill isn’t used). You just need to enter your login details and authorize it followed by 2nd factor verification. Cards will be faster if auto-fill in practice as you will be jumping directly to last step.
|Remark||Moderately Convenient||Restricted to online usage only||Average to High in Urban areas. Negligible in Rural Areas||Very Reliable.||Good.||Yes||High. OTP or PIN based|
Overall Average: 3.51
UPI(Unified Payment Interface):
Launched in 2016, it was no less than a revolution in India at minimum. Launched 1st with BHIM app by NPCI, it’s the most user friendly easy to use payment method. Equipped with cashback referral offers people started using it at an exponential rates every month. The late demonetization effect promoted its usage even further.
UPI is payment system similar to emails. You make an UPI ID linked to your bank account(any UPI enabled bank). Through that like in email you send text based files, here you will send money.
|Remark||Extremely Convenient||Retailer, Online and Merchant use||Average to High usage in Urban Areas||Very Reliable||Great Performance most of the time||New gen. easy payment system.||Very High. PIN based.|
Overall Average: 4.40
Most should not be needing any introduction or specification about cash. A simplest offline physical form of currency, acts as the mainframe payment option at most retailers and merchant stores in India. The only drastic change in its form was after demonetization on November 8, 2016.
|Remark||Very Convenient||Nationwide Acceptance||Nationwide Usage||Depends on usage||Swift.||Very less lifespan||No Security|
Overall Average: 3.15
Indian Payment Methods Score Analysis 2017-18 by CInformatics Community
|Payment Methods||Convenience||Feasibility||Usage||Reliability||Performance||Long Term||Security||Overall Rating|