Abstract
Digital economy refers to an economy that is based on digital computing technologies. Dr. DhirajSaha The digital economy is also sometimes called the Internet Economy or Web Economy. Digital Payment is a way of making payment through digital modes like debit card, credit cards, prepaid cards, RuPay Debit Cards, UPI Apps like BHIM, AEPS-Aadhaar enabled digital payment mode with the help of PoS (Point of sale) machines, USSD banking or *99# Banking, e-wallets etc. After demonetization there was huge push for digital payments. On September 18, the world's largest internet company, Google, launched digital payments app Tez in India. Tez is yet another payments platform that joins a long list of cashless payment platforms — from BHIM to Aadhaar Pay — offered since demonetization on 8th September 2016. India's largest wallet player, Paytm, claims around 260 million users and MobiKwik, 60 million. While India's largest bank, State Bank of India has 195 million customers, Paytm claims around 7 million daily transactions and MobiKwik about 3 million. There are enough apps and platforms that help pay digitally — UPI, BHIM, Aadhaar Pay, Paytm, MobiKwik, HDFC Pay Zapp, SBI Buddy, PayU, Tez, besides credit cards and debit cards, but people still seem more comfortable reaching for cash than an app. On October 4, 2017, RBI announced the interoperability of e-wallets of private firms which will be allowed with six months to those compliant with KYC norms. Interoperability helps users of one app to transact with users of a different app. This facility is currently functional under the state-owned Unified Payment Interface (UPI), available only to banks and those e- wallets build on the UPI platform. Recently held 23rd GST Council meeting on 10th November 2017 at Guwahati, announced the provision of incentives for payments that are settled electronically. One97 Communications, the holding company has started Paytm on August 2010. In 2016, the business was split into three parts. One97 retained businesses like mobile content, games and insurance. The wallet moved to Paytm Payments Bank, e-commerce and retail to Paytm E-Commerce. Paytm targets to reach 500 million users from the existing 250 million users in the next two year, from 5 million to 10 million merchants by March 2018 covering 600 districts.
Keywords: Digital Economy, Digital Payments, e-Wallets, interoperability, Paytm.
Reference
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