With the ongoing pandemic and the fear of the virus all around, cashless transactions have become a more convenient and popular choice. We are soon heading towards a future where there would be no cash, and you could take a loan from an instant personal loan app instead of visiting a bank.
Let us see some of the popular cashless payment methods:
Cheque Payment: The traditional method
Payment through cheque is one of the oldest cashless payment methods and is known to everyone. You first issue a cheque of a specific amount to someone else. Then the cheque gets deposited in the respective bank. The bank then processes the payment through a clearinghouse. Finally, this entire transaction gets recorded with proof of the payment done.
A Demand Draft
A Demand draft is the safest option to receive payment from anyone. In addition, since the banker signs it, a DD will never default. The only disadvantage with a cheque and DD is that you need to visit a bank to deposit them, and the clearance of a cheque or DD takes longer than the other payment methods.
Online transfer through NEFT or RTGS
Another simple method of cashless transactions is online transfer through NEFT or RTGS. It is much faster than a cheque or DD payment. Moreover, the payment is made anywhere with an internet and online banking facility.
Use of Banking Cards
These include debit, credit, and prepaid cards. What’s great about using these banking cards is that they have two-factor authentication. So your payment is secure through a PIN and an OTP. Among banking cards, Visa and MasterCards are the most popular.
The cards have the advantage of easily connecting with PoS (Point of Sale) machines, ATMs, shops, wallets, online transactions, and e-commerce websites. In addition, you can set transaction limits based on the card type, and International banking cards are of use across the globe for different currencies.
Mobile Wallet Application: The easiest of them all
Google Pay, Samsung Pay, or Apple Pay, you definitely would have heard of at least one of these. They are used to either send, receive or store money or check your credit score, all just by linking the application to your bank account.
You can send money using an email address, phone number, unique ID or scan a QR code using the application. Here your data is encrypted, and your information is secure. It is also the fastest payment method.
UPI Apps: Transactions on your smartphone
UPI is a versatile instalment framework that permits you to send or receive money using a virtual payment address without entering bank information.
Gift Cards
Gift cards are from a merchant or a bank. These gift cards have a fixed cash amount to buy any item from a specific vendor.
There are several benefits of going cashless, namely faster service, The ability to track your spending, which helps you discipline your budget. In addition, you can easily block your credit card or mobile if and when the need arises. Moreover, many discounts, specials, coupons, and no-cost EMI are available for online purchases.