India’s economic progress is largely dependent on villages and towns due to the agriculture sector. It is important not only to consider them but also empower them with digital payments and cashless banking. Rural areas in India with the convenience of mobile money can help bring better business and transparency.
Advantages of digital payment in rural areas of India
Rural economy heavily relies on cash transactions. One of the biggest reasons for that is the absence of banks in their villages. They have either travel to the next town or nearest cities for bank transactions. Digital payments with the help of Fintech companies or mobile banking eliminates the need to go to a bank and banking can be done anytime anywhere.
Banking at door step
With the help of banking services provided by Fintech companies, it is possible to set up bank accounts without having to actually visit a bank branch which may be located in remote rural areas. It is also possible to withdraw cash, transfer money and pay utility bills. Digital payment has never been so easy.
Rural Business Boom
Being hassle free, it is easy to use and once the rural population begins to get comfortable with this cashless transactions and digital banking, more merchants or shop owners can become associates. Better reach and more convenience would automatically give a boost to all kinds of rural businesses. Once that happens, there would be a more secure flow of funds.
Better access to Economical Facilities
Many people in rural areas have to struggle to get their pension and wages paid or to avail benefits of schemes they are eligible for. With digital banking, it is easy to approach things and get paid sooner.
It is not feasible for people in rural areas to make long trips to make investments or pay utility bills or withdraw money from ATMs to pay wages to their staff. However, having a mini or micro ATM in rural areas would be a boon and the entire sector could witness exponential growth. Whether it is to make online bill payments or to lend and borrow money, if it is all possible with digital banking.
Being a trusted solution that is known for its strict quality standards, the identity proof is aadhar card enabled or through fingerprint which make using this system extremely convenient.
Fintechs are Playing an Important Role in Digital Payment Space
Fintech firms such as Fastpay Payments in association with the Government are trying their level best to empower rural businesses digitally and financially post demonetization. Novel solutions that specially cater to the needs of the rural business community are being implemented. Aadhaar Enabled Payment System (AePS) and mATM at retail points to help users carry out transactions, thereby eliminating the requirement to visit the physical branches of a bank.
There is also the provision to make offline-to-online transactions, which is particularly useful for rural businesses that lack direct digital access.