digital payments for students and learners

digital payments

1. DIGITAL PAYMENTS

2. Introduction to Digital Payments: The
Future of Transactions
•Definition: Digital payments are
electronic transfers of money
between parties
•Examples:
•Mobile wallets (e.g., Apple Pay,
Google Pay)
•Online bank transfers
•Contactless card payments
•Key feature: No physical cash
involved
•Facilitated by various
technologies and platforms

3. Types of Digital Payment Methods
1.Mobile Payments:
1.Smartphone apps for transactions
2.Examples: Venmo, Cash App, PayPal
2.Online Banking:
1.Direct transfers between bank
accounts
2.Bill payments through bank websites
3.Contactless Payments:
1.Near Field Communication (NFC)
technology
2.Tap-to-pay cards and devices
4.Cryptocurrency:
1.Digital or virtual currencies like
Bitcoin
2.Blockchain-based transactions

4. Benefits of Digital Payments
1.Convenience:
1.Pay anytime, anywhere
2.No need to carry cash
2.Speed:
1.Instant transactions
2.Quick fund transfers
3.Security:
1.Encrypted transactions
2.Reduced risk of theft
4.Record Keeping:
1.Easy tracking of expenses
2.Digital receipts and transaction
history

5. Challenges and Considerations
1.Security Concerns:
1.Risk of hacking or fraud
2.Importance of strong passwords and
authentication
2.Technology Dependence:
1.Reliance on internet connectivity
2.Need for compatible devices
3.Privacy:
1.Data collection by payment providers
2.Importance of reading terms and
conditions
4.Accessibility:
1.Potential exclusion of those without
digital access
2.Need for digital literacy

6. The Future of Digital Payments
•Continued growth and
innovation in the field
•Integration with emerging
technologies:
•Artificial Intelligence
•Internet of Things (IoT)
•Potential for increased
financial inclusion globally
•Importance of staying
informed about new
developments

7. Credit Cards and Debit Cards:
Understanding Financial Tools
•Introduction to Payment
Cards
•Definition: Plastic cards used
for financial transactions
•Two main types: Credit cards
and debit cards
•Both offer convenience and
security for purchases
•Important to understand the
differences and proper usage

8. •What is a Credit Card?
•A card that allows you to
borrow money from a bank
•Spend up to a predetermined
credit limit
•Pay back the borrowed
amount later
•Interest is charged on unpaid
balances
•Example: Buying a item with a
credit card means borrowing
from the bank

9. •What is a Debit Card?
•A card linked directly to your
checking account
•Allows you to spend money you
already have
•Transactions deduct money
from your account immediately
•No borrowing involved
•Example: Buying a item with a
debit card removes from your
bank account

10. •Key Differences: Credit vs.
Debit
1.Source of funds:
1.Credit: Borrowed money
2.Debit: Your own money
2.Spending limit:
1.Credit: Pre-approved credit
limit
2.Debit: Amount in your bank
account
3.Payment timing:
1.Credit: Pay later (usually
monthly)
2.Debit: Immediate payment

11. •Advantages of Credit Cards
•Build credit history
•Fraud protection and purchase
insurance
•Rewards programs (cashback,
points, miles)
•Useful for large purchases or
emergencies
•Interest-free grace period (if
paid in full)

12. •Advantages of Debit Cards
•No risk of debt or interest charges
•Helps with budgeting (can't
overspend)
•Widely accepted for purchases
and ATM withdrawals
•No annual fees in most cases
•Teaches responsible spending
habits

13. •Responsible Use of Credit
Cards
•Pay the full balance each month
to avoid interest
•Stay below 30% of your credit
limit
•Make payments on time
•Review statements for
unauthorized charges
•Understand the terms and
conditions (interest rates, fees)

14. •Responsible Use of Debit Cards
•Keep track of your account balance
•Be aware of overdraft fees
•Use secure ATMs and protect your
PIN
•Report lost or stolen cards
immediately
•Set up alerts for large transactions

15. •Choosing Between Credit
and Debit
•Consider your financial
situation and goals
•Credit cards are better for:
•Building credit
•Large purchases
•Online shopping (better fraud
protection)
•Debit cards are better for:
•Everyday expenses
•Avoiding debt
•Cash withdrawals

16. •Conclusion: Making
Informed Choices
•Both credit and debit cards
have their place in personal
finance
•Understand the features and
risks of each
•Use the right card for the right
situation
•Practice responsible financial
habits
•Seek advice from trusted
adults or financial advisors
when needed

17. •Introduction to UPI
•UPI stands for Unified Payments
Interface
•Launched in 2016 by the National
Payments Corporation of India
(NPCI)
•Real-time payment system that
enables instant money transfers
•Operates 24/7, 365 days a year
•Facilitates both Person-to-Person
(P2P) and Person-to-Merchant
(P2M) transactions

18. •Key Features of UPI
•Instant fund transfer
•Single mobile application for
multiple bank accounts
•Uses Virtual Payment Address
(VPA) instead of bank details
•Supports QR code-based payments
•Two-factor authentication for
enhanced security
•Interoperable across different banks
and platforms

19. •How UPI Works
1.User registers for UPI and
creates a Virtual Payment
Address (VPA)
2.Links bank account(s) to the
UPI app
3.To send money, user enters
recipient's VPA or scans QR
code
4.Enters UPI PIN to authenticate
the transaction
5.Funds are instantly transferred
from sender's account to
recipient's account

20. •Advantages of UPI
•Fast and convenient transactions
•Reduced dependency on cash
•Lower transaction costs
•Enhanced security with encryption
and two-factor authentication
•Promotes financial inclusion
•Supports small businesses and
digital economy growth

21. •UPI Transaction Types
1.Send Money: Transfer funds to
another person
2.Request Money: Ask for payment
from someone
3.Pay to Merchant: Make payments
for goods and services
4.Pay by QR Code: Scan and pay
using QR codes
5.Check Balance: View account
balance without logging into bank
app

22. •UPI Apps and Platforms
•BHIM (Bharat Interface for Money)
•Google Pay
•PhonePe
•Paytm
•Amazon Pay
•WhatsApp Pay
•Many bank-specific UPI apps

23. •Introduction to Digital
Payments
•Digital payments refer to
transactions made using digital
or electronic modes
•Part of the broader fintech
revolution
•Aims to create a cashless
economy
•Includes various methods
beyond UPI

24. •Types of Digital Payments
1.Mobile wallets (e.g., Paytm,
MobiKwik)
2.Internet banking
3.Credit and debit cards
4.Contactless payments (NFC
technology)
5.QR code-based payments
6.Aadhaar Enabled Payment
System (AEPS)
7.Unstructured Supplementary
Service Data (USSD)

25. •Mobile Wallets
•Digital versions of physical
wallets
•Store money and card
information securely
•Can be used for online and
offline transactions
•Examples: Paytm, Google
Pay, PhonePe
•Often integrate with UPI for
added convenience

26. •Internet Banking
•Allows users to conduct
financial transactions online
•Services include fund
transfers, bill payments, and
account management
•Accessible through bank
websites or mobile apps
•Requires strong
authentication measures
•Convenient for both personal
and business banking

27. •Contactless Payments
•Uses Near Field
Communication (NFC)
technology
•Allows payments by tapping
or waving card/device near a
terminal
•Supported by many
credit/debit cards and mobile
payment apps
•Faster than traditional card
payments
•Gaining popularity due to
hygiene concerns in post-
COVID era

28. •QR Code-Based Payments
•Quick Response (QR) codes
contain payment information
•Users scan the code using
smartphone camera or UPI
app
•Popular for small businesses
and street vendors
•Eliminates need for point-of-
sale terminals
•Integrated with many UPI and
digital wallet apps

29. •Aadhaar Enabled Payment
System (AEPS)
•Allows Aadhaar-linked bank
account holders to make
transactions
•Uses Aadhaar number and
biometric authentication
•Facilitates fund transfers,
cash withdrawals, and
balance inquiries
•Particularly useful in rural
areas with limited banking
infrastructure
•Promotes financial inclusion
for underbanked populations

30. •Unstructured
Supplementary Service
Data (USSD)
•Mobile banking service that
works without internet
•Accessible on basic feature
phones
•Uses dial codes like *99# to
access banking services
•Enables fund transfers,
balance inquiries, and mini
statements
•Important for digital financial
inclusion in areas with poor
internet connectivity

31. •Benefits of Digital Payments
•Convenience and speed of
transactions
•Reduced risk of theft compared
to carrying cash
•Better record-keeping and
expense tracking
•Promotes financial inclusion
•Reduces shadow economy and
increases tax compliance
•Environmentally friendly
(reduces paper use)

32. •Challenges in Digital
Payments
•Cybersecurity concerns and
fraud risks
•Digital divide and technology
adoption issues
•Need for robust internet
infrastructure
•Privacy concerns related to
data collection
•Potential for system outages
or technical glitches
•Educating users about safe
digital payment practices

33. •Future of Digital Payments in
India
•Continued growth and
innovation in UPI and other
digital payment methods
•Integration of Artificial
Intelligence and Machine
Learning for fraud detection
•Expansion of blockchain-based
payment solutions
•Increased focus on financial
literacy and digital payment
education
•Development of Central Bank
Digital Currency (CBDC) by RBI
•Greater emphasis on data
protection and user privacy

34. •Conclusion
•UPI and digital payments are
transforming India's financial
landscape
•Offer numerous benefits for
individuals, businesses, and the
economy
•Continuous innovation and
improvement in security
measures
•Government initiatives
promoting digital transactions
•Importance of staying informed
about safe digital payment
practices
•The future of finance is
increasingly digital and mobile-
first

35. THANK YOU