Until 2009, we had minimal options. The businesses had to set up a payment gateway solution via their banks to process credit/debit cards/Internet banking payment transactions or ask their customers to pay via NEFT/RTGS from their bank account. Since then, digital wallets, IMPS, and UPI payment instruments have exploded nationwide.
Payment aggregators like RazorPay, Cashfree, etc, came into existence to simplify business payment acceptance. These aggregators provide multiple payment methods so customers can pay using their preferred mode. The payment aggregators also handle settlements, refunds, chargebacks, and regulatory compliances. Instore payment aggregators like Pine Labs have started accepting all digital payment options in their Point Of Sale (POS) solutions. A convenient and interoperable QR code payment solution called Bharat QR using UPI was also launched by NPCI, which addresses the peer-to-peer payment experience for in-store customers.
Meanwhile, NPCI also launched the Bharat Bill Payment System(BBPS), a convenient solution for billers nationwide, such as Electricity Boards, Educational Institutions, Loan Providers, etc., to accept their bill payments conveniently. BBPS is widely available on fintech apps such as Google Pay, PhonePe, etc., for consumers who prefer a self-service bill payment experience and Business Correspondent (BC) Networks for consumers who prefer an assisted payment experience.
For recurring payments, eNACH and UPI AutoPay usage is on the rise. These solutions work well for upwardly mobile customers. Yet to see significant traction from tier-2/tier-3 locations.
In the financial inclusion segment, Aadhaar Pay was launched with limited success. However, given the rising adoption of smartphones in this segment & the proliferation of BC networks with touch points in the nook and corner of the country, UPI and BBPS will continue to dominate payment acceptance until CBDCs take off.