The digital payments landscape globally has evolved over the past few years. There are various methods and technologies used to transfer money or make payments electronically.
The landscape is driven by technological advancements and changes in consumer behaviour.
Here are some key trends and developments in the digital payments landscape globally:
Mobile payments: With smartphones, mobile payments have become increasingly popular. Mobile payment apps such as Apple Pay, Google Pay, and Samsung Pay allow users to make payments with their phones by simply tapping or scanning a payment terminal.
E-wallets: E-wallets or digital wallets allow users to store payment information and make payments online or in-store. Popular e-wallets include PayPal, Alipay, and WeChat Pay.
Cryptocurrencies: Cryptocurrencies such as Bitcoin and Ethereum have gained popularity as an alternative payment method. While they are not yet widely accepted, more businesses are beginning to accept cryptocurrencies as a form of payment.
Contactless payments: Contactless payments, which use near-field communication (NFC) technology to enable payments, have become increasingly popular during the COVID-19 pandemic as they offer a touch-free payment experience.
QR code payments: QR code payments, where users scan a QR code with their phone to make a payment, have gained popularity in Asia and are becoming more common in other regions as well.
Digital banking: Digital-only banks, also known as neobanks, are growing in popularity. These banks offer a range of banking services, including payments, through mobile apps and online platforms.
Open banking: Open banking allows third-party providers to access banking data and build applications and services that use this data. This can include payment initiation services that allow users to make payments directly from their bank account through third-party apps.
Overall, the digital payments landscape is constantly evolving, with new technologies and payment methods emerging all the time.
Digital payments were being used globally around the same time as in India, with various countries promoting cashless transactions and digital payments through the development of new payment technologies.
For example, in China, digital payments through mobile payment systems like Alipay and WeChat Pay had already become ubiquitous before India's launch of UPI in 2016. In the United States, payment technologies like Apple Pay and Google Wallet had also been introduced, although the adoption of digital payments in the US has been slower compared to other countries. In Europe, the use of digital payments was also gaining traction, with initiatives like the Single Euro Payments Area (SEPA) promoting cross-border electronic payments. Additionally, in countries like Sweden and Norway, cashless transactions had become so common that some businesses had stopped accepting cash altogether. Overall, the use of digital payments was on the rise globally in the years leading up to India's launch of UPI in 2016, with many countries looking to reduce cash usage and promote the benefits of digital transactions.
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