The sight of hoards of cash being exchanged across the table after a business deal being finalized is a thing of the past. Gone are the days of bulging wallets and purses being stashed with currency notes and coins. All one needs today is an electronic device with a secure internet connection to disburse payments for their purchases or utility bills. The Internet of Things (IoT) which refers to augmenting the magnitude of internet based devices has completely transformed the way financial transactions are done across the globe. With the number of internet enabled devices set to increase exponentially from 10 billion today to 50 billion by 2020 the scope for internet-based payments is phenomenal. India has witnessed a meteoric rise in online payments in the recent years. As per IAMAI (Internet and Mobile Association in India) digital payment in 2014 was expected to account for about INR 120000 crores with a growth rate of 40%. In spite of the encouraging statistics, India still continues to be a cash intensive country with cash in circulation as high as 13% of GDP as compared to 3% for Sweden. Thus, there is a great opportunity and potential to develop India into a cashless economy.
With the advent of sophisticated technology, the internet based payment system has provided a fillip to the business world. It has paved the way for seamless and faster transactions among entities which has improved the work efficiency. Thus, unnecessary delays in operations due to slow processing of payments by traditional methods have been eliminated. The exodus of customers towards online shopping has compelled organizations to adopt a secure and reliable online payment platform. This has enhanced the performance of e-commerce companies with increased revenues, real time payments, decline in overdue payments and reduction in processing costs. All transactions being recorded online has resulted in greater transparency in the financial supply chain and improvement in compliance of statutory requirements. The online payment system has not only benefitted the private organizations but also has been rewarding for public organizations and the government.
The Government of India has recently announced various measures to promote cashless internet based payments such as reduction in transaction costs, tax concessions and benefits. This shall have far reaching effects for the Indian economy. A well planned online payment network will go a long way in tackling the peril of black money. It will enable the authorities to monitor illegal transactions and keep a check on tax evasion by business firms and individuals. This will foster the inflow of tax revenues in government coffers with increase in the tax payers’ base. This set up of online payment facilitates the ease of doing business in the country and streamlines the processes. The internet based payment system has empowered customers providing them the freedom to pay or transfer funds as per their convenience with no reliance on any executive or without visiting the banks. Thus, they can accomplish their task in a jiffy avoiding long queues which is a common spectacle today not only in metros like Mumbai but also in tier II and tier III cities across India. This helps in saving a lot of precious time and efforts. A major deterrent in using online payment options by customers in India has been the concern regarding the security of confidential information. This has been taken care of by the concerned organizations with secure software platforms and security standards being used. Thus the risk of loss or frauds has been eliminated.
To ensure that online payment option is available in every part of India it is necessary that bank accounts of individuals are synced to internet banking, debit and credit card facilities are provided and most importantly internet connection is available even in the remote areas of the country. This unlocks an array of opportunities in India that can be tapped in the coming years in the field of IT, banking, marketing, sales and operations. Thus, in going digital India requires a capable and proficient work force to unearth its true potential. In this regard the educational institutes and universities have a vital role to play. ITM University Online one of the leading Indian institutions in providing online MBA courses in various specializations designed such that the students garner the knowledge and skills required to meet the future requirements of the business world.