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The Role of Digital Payments in Online Shopping

Online shopping is surging with the support of digital payments, as they are faster, secure, can go cross borders, facilitate easy cancellations and refunds

By yogeshazrPublished about a month ago 3 min read

Online shopping has become very popular in the last few years and is still growing at a faster pace. There are portals that are getting a large user base like Flipkart, Amazon, Tatacliq, Jiomart, Meesho, etc. Apart from that lot of businesses are selling directly through their websites and social media platforms like Instagram and Facebook. Modern digital payment solutions act as the backbone for these online commerce transactions. Digital payment solutions are faster, safer, and accessible to everyone through mobile phones, laptops and tablets, even if you are in remote areas. Lets check in detail how digital payment is helping online commerce to grow.

How Digital Payments Differ from Traditional Payments

Traditional payment systems usually involve transactions using physical cash and cheques, and hence they are manually processed which can take too much time as well as are not much secure. These are labour-intensive methods and hence need too much manpower. On the other hand digital payment systems are quick, secure and efficient, and work 24X7. In a digital system, the payment process takes place in real time and it allows real-time tracking facility. Modern digital payment systems follow advanced security measures like PCI DSS compliance, tokenization, multi-factor authentications, etc, making them very secure. Thus, making digital payment systems ideal for online commerce platforms, wherever be the customer he can place an order through websites and transfer funds instantly. With digital payments even cancellations and refunds can be processed and settled quickly, thus providing a smooth online shopping experience.

Digital Payment methods

QR Code payments

payment with QR codes is one of the widely used methods, where customers need to scan the QR code using a mobile phone camera and initiate the payment process.

Payment links

Payments using payment links is a new technology and is becoming popular at a very rapid pace. Businesses need to generate a unique link and share it with the customer, and the customer on clicking the link will be taken to the payments page, where he can complete payments in few clicks.

Digital Wallets

Digital wallets like PayPal can securely store payment information and customers can conduct transactions safely and quickly.

Buy Now, Pay Later Services

But now pay later (BNPL), as the name depicts one can make the purchase now and can pay the amount next month. BNPL providers provide the option to settle the whole amount at once as well as convert it into an emi transaction.

Contactless Cards

Card payment is been used in the market from a long time. Debit cards as well as credit cards are very popular and are still widely used across the globe. Modern cards have the option to pay the amount by just tapping on the payment terminal. Also called as contactless cards and all the major cards like Visa, RuPay card, Master Card, etc, have this feature.

UPI Payments

Unified payment interface (UPI) is the payment technology that allows fund transfer from one account to the other in real-time through any UPI apps like Google pay, Paytm, Samsung pay, Phone Pay, etc using the UPI id. This process happens in real time and one can send amounts as small as 1 rupees without any transaction fee. As a result, UPI payments are widely used in India which includes small street vendors to large businesses.

Benefits of Digital Payments in Online Shopping


With digital payments, you can do online shopping from the vicinity of your house, and pay for the products at any time, need no more worry about bank transaction times and store hours. Payment transfers can be done instantly with a few taps on your mobile device, making it the most convenient way to make payments.


Digital payments are processed in real-time, it will take hardly a fraction of a second to complete the payment, and the payment confirmation messages and notifications are received instantly.

Simple Checkout Process

The digital payment process makes the checkout process smooth and simple, thus reducing the cart abandonment rate. Mobile wallets and apps can securely store the account and card information, hence system will automatically take the account and card information from the saved data making the whole checkout process quicker and simpler.

Easy Refunds and Returns

With digital payments, businesses can process and settle cancellations and refunds instantaneously, which can enhance the overall shopping experience.

Global Reach

With online shopping and digital payments, businesses can go global, wherever be the customer they can easily collect payments, allowing businesses to cater to a wider audience.

Enhanced Security

Modern digital payment methods are very secure, they employ technologies like Encryption, tokenization, multi-factor authentications, biometric verification, etc.

Real-Time Tracking

Digital payments allow real-time tracking as well as send instant notifications and messages about the payments, making the financial management process smoother.

Improved Cash Flow

Instant fund transfer and real-time tracking facility of digital payments improves the cash flow management.


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    YWritten by yogeshazr

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