PAYMENT APPLICATIONS AND CHANGING TRENDS OF BANKING

Abstract

E-payment can be defined as the collection of tools or methods by which transfer of funds or money takes place between the two parties, payer and the payee through all the electronic channels other than physical modes like cash & cheques. According to Hsiao-Cheng, Kuo-Hua and Pei-Jen (2002), there are four major categories of electronic payment systems: online credit card payment, electronic cash, electronic cheques and small payments. They further stressed that each of these systems has its own advantages and disadvantages. They further stressed that each type could be assessed through these four distinct qualities viz: Technological aspect, Economic aspect, Social aspect and Institutional and law aspects Digital payment systems are steadily becoming a promising mode of payment in today’s world because of its features like convenience, timeliness and efficiency. It is the payment system that has been majorly adopted by the developed countries & gradually being adopted by the developing countries with a view to simplify & ease payments in business transactions. These modes of payment have a great potential to make the economy of a country cashless which, in return can make the country a superpower. Amongst the fixed consumers, the young and educated are the early users of the digital payment apps. Consumers with college graduate degrees are evenly split between users and non-users, whereas the lower qualifications show lower usage rates.