Contactless payment is set to come to be more preferred in the New Year with the RBI deciding to enhance the limit ‘tap-and-go’ function to Rs 5000. However, when it comes to contactless payment selections like credit card, UPI and mobile banking apps, there is nonetheless a query amongst customers as to which is the greatest amongst these. Experts say that all these selections have their personal merits and demerits. However, UPI could be mentioned to be the greatest of the 3 for creating contactless payment even though purchasing.
According to Rajesh Desai, CEO and Director, Lyra Network India, creating payments by means of credit card can be tedious when compared with payment by means of UPI or mobile wallets (mobile banking apps). Both, swiping the card at the counter or getting into card particulars even though creating on the internet transaction is time-consuming. Also, most of the on the internet platforms have an choice to spend utilizing UPI or mobile wallets.
“Payment via mobile apps seems to be faster and secure. Though mobile payments eliminate the need for merchants to purchase expensive POS, lack of interoperability puts them at disadvantage,” Desai told FE Online.
Desai says that UPI is the greatest amongst the 3 for creating payments. “UPI payments, however, happen directly from one bank account to another. UPI payment is easier, faster, and secure. Instead of installing different applications, UPI brings multiple bank accounts on one platform. There is no need to add a beneficiary for transactions. In contrast with a credit card, there are no transaction charges on UPI payments which makes it the best among all three,” he mentioned.
Anand Kumar Bajaj, Founder, MD and CEO, PayNearby, says that all the 3 contactless payment selections have some advantages. He says that UPI debits a bank account and is not out there on credit cards. Bank application has quite a few other goods which they attempt to cross-sell these days and there are only 60 million credit cards in the nation as opposed to 860 million debits cards in India.
Bajaj says that UPI has an edge becoming in a position to serve the debit card base. The user encounter of every single of them is distinct. UPI is an straightforward Person2Person (P2P) as properly as Person2Merchant (P2M) payment on the smartphone exactly where the consumer is essential to do practically all actions. Mobile Banking app is the bank’s app with which most customers avail bulk of advantages with no going to the bank branch or an ATM.
“A very large number of banks have enabled UPI as well as Bharat QR code on their mobile banking app. Then there are big 5 now i.e. Google Pay, Amazon Pay, PhonePe, PayTM and this month onwards WhatsApp Pay. All these players have leveraged UPI to provide better user experience through their mobile apps and in the process have also provided the much-needed boost to micropayments, be it P2P or P2M. Finally, Credit Cards are till recently physical cards but tokenisation has also enabled them on NFC mobile and is progressively being made available on Bharat QR code,” Bajaj mentioned.