The COVID-19 pandemic has changed the shape of the payments ecosystem, with digital payments becoming the most sought-after mode among the youth. Digital has killed all the age boundaries of banking. Hence, the rising segment in the digital payments space after millennials is teenagers.
According to an online survey, a total of 35% of teens learned about finances from social media and 34% from websites and online articles. The survey added that watching content is what 66% of teens do most on social platforms, and social media uplifts 90% of their financial decisions.
Teenagers prefer digital payments to other modes due to ease in making payments, reward and bonus incentives offered by various portals such as banks’ net banking portals and Unified Payment Interface (UPI) portals. Well, digital payments are dominating the payment space
Though supported by parents, teens take charge of explaining and handling the technicalities. Teenagers have turned towards contactless payments even in smaller cities, where cash is predominant.
With 84% of India’s teens are turning towards online shopping, the top three things that are being purchased are food, clothes, and gadgets. Moreover, with teens or “digital natives” setting the course for digital payments, financial institutions are eyeing new prospects to develop products and services for the youth.
Fyp has come up with digital payment and financial literacy platform to appeal to young India. Fyp allows teens to do online transactions without setting up bank accounts or asking parents for OTPs.
Here’s what you need to know about why online payment is better than cash.
Why Digital Payments are better than cash?
Digital Payments Are Fast
One of the most obvious advantages of digital payments is how quick they are, especially for major purchases. Imagine you are at the billing counter and you have to count cash to pay. Isn’t paying digitally through UPI or card much easier and faster?? This will also save your time, Think🤔
Also, if you need to transfer money to someone, the digital way is the fastest. It could be UPI or a bank transfer, depending on your choice. But digital payments are way better than cash and there is no doubt about it.
You can see even the small grocery stores have QR codes and are accepting digital payments. In the last few years, digital payments have made a space for itself and have been adopted as most users resort to paying.
Paying online is more convenient for people
The second most important reason to choose digital payments over cash is sheer convenience. Imagine you are at a mall, standing in a queue to clear your bill. What will be easy for you? Counting cash and waiting for change or just paying digitally in seconds. Well, you have the answer already😀
People now look for convenience and cash is surely a hassle to carry. It can be misplaced or even stolen and that is not what you want, Right!! From the smallest payment like groceries to the bigger ones like home appliances, digital payments are used and accepted almost everywhere.
Digital payments are typically more secure
Another important reason why digital payment is better than cash is security. The difficulty with walking around with large amount of money is that you’ll likely never get it back if it’s stolen or lost. In addition, if anyone knows you frequently carry cash, you become a target for robbers.
While it’s certainly possible for online payments to be targeted by cybercriminals who attempt to steal money, if you are aware and take care of the precautions that are mentioned by financial institutions, the chances are less. You just need to be careful with the crucial banking details and not share them with anyone.
Covid has played it’s role
We can’t forget the time when we all were locked up in our house and cash was a big “NO” to avoid the outspread of covid. People who were not even aware of digital payments started using them. The penetration of digital payments increased as every payment had to be done online be it groceries or shopping for clothes.
Savings through Digital Payments
Well, we have covered all the basic points but we can’t stress enough on this one. Many fintech companies are offering digital payment solutions and give lucrative offers/cashback to users on payments. Who doesn’t likes extra savings??
You can save a considerable amount of money through digital payments and even win rewards like an iPhone. Isn’t it cool??
As you can see, there are many reasons why digital payment is better than cash, not just for consumers but even businesses as well. It is always easy to keep records of digital receipts rather than counting cash.
At Fyp, we are on a mission to bank the unbanked i.e. Teenagers. We want teenagers to have exposure to digital payments and become smart with money.
Now you think, what you want to choose? Cash or Digital Payments?
If you want to know more about Fyp or have any doubts, please write to us at firstname.lastname@example.org
Fyp is a Neo Banking platform for teens and kids, empowering them with financial literacy and ease of secured financial transactions. With Fyp App & Fyp Visa Card, teenagers below 18 years can make online and offline payments without setting up a Bank Account. We have more than 1 million users, and we continue to grow at a breakneck speed.