Despite the increase in digital payments, some people are still not using it. If we look deeper, we can find that there are some myths or misconceptions that are holding them back. In case we can take them out of the cocoon of those misconceptions, they can also feel the ease of digital payments. This is our small attempt at debunking the digital payment myths with facts.

Busting Digital Payment Myths with Facts

Here are the 5 most popular myths related to digital payment that the users have to abandon. Have a look:

Myth #1 During Digital Payment, Sensitive Data Are Captured

Several non-users believe that digital payments are unsafe because, during online transactions, the sites/apps capture all their data (ID, Password, Card details, CVV, OTP) as soon as they enter for future misuse. As a result, it is better not to use digital payments to keep money safe.

Fact: The reality is different – without the permission of the user, nothing is captured on the website or app. Passwords cannot be stored in any way. Sites can store card details (card number, name, and expiry date) if the cardholder allows, but only after card tokenization. This is a rule and violators have to a huge penalty. Similarly, all types of data exchanges during the transaction go through end-to-end encryption for utmost safety. And digital payments go through multi-factor authentication, so the user has to enter a password or OTP to complete the payment. So, without user's authentication, there will be no debit.

Myth #2 Digital Payments are Exposed to Fraudsters

Due to the increasing fraudulent activities in the country, this myth is very popular. Some users believe that digital transactions are non-bank transactions involving external parties which makes these payments exposed to fraudsters. As a result, money instead of reaching the actual beneficiary, reaches fraudsters. Also, people believe that their data will go to wrong hands if they lose their laptop/mobile.

Fact: Users do not need to be at any bank to conduct a digital transaction - this is indeed true, but that does not mean that digital transactions don't involve banks. The banks, card network, payment gateway, etc. work closely and all play a crucial role during online payments. Fraudsters or even real recipients too cannot withdraw any amount unless the user allows it with authentication.

Even if a user loses the device, no one can access the data because the bank/UPI apps ask to log in with valid details to transact. So, the chances of misusing the device to steal money from the stolen device is ZERO.

Myth #3 Only a Strong and Unrecognizable Password Is Enough

Users often hold this misconception regarding the safety of digital payments – they pick a strong and unrecognizable password to secure digital transactions.

Fact: Users have to opt for multifactor authentication (MFA) or two-factor authentication along with a strong password to secure their transactions. It adds an extra layer of security to digital transactions by ensuring that the user authenticates the transaction in multiple ways - fingerprint, face recognition, password, pattern, OTP, etc. To shield digital transactions, go for a combination of a strong password and authentication.

Myth #4 Customers Prefer to Pay with Cash

This is a deep-rooted misconception in many merchants – they do not want to integrate payment solutions because they believe customers are more comfortable with conventional modes of payment.

Fact: The reality is that merchants find it risky to change how they collect payments till now (cash, cheque, manual card processing, etc). For customer preference, let the data speak!

Statista mentions that in 2024, 164 billion online transactionswere recorded in India. Not just that, the volume of UPI transactions was 131 billion. It indicates that customers are busy and they have embraced digital payments as it is fast and time-saving. They neither need to visit the bank and stand in the queue. For many of them, carrying cash is a problem. So, it is now a mainstream payment. That's why merchants need to offer it to buyers. Not offering online payment options may offend them which contributes to bad customer experience.

Myth #5 Digital Payment Is Solely For the Tech-Savvy Young Generation

People love to believe that getting started with digital payments is difficult. These are so techy and complex that only the young generation with core technical knowledge can use them.

Fact: In reality, digital payments are super easy and fast. User-friendliness is the key feature of digital payments. These solutions are inclusive of ages and backgrounds. From the rural belt of India, so many people are using it - the solutions are multi-lingual and user-friendly.

Getting started is equally easy for merchants - they can quickly onboard themselves in simple steps within a few minutes on their preferred payment solution.

Willing to accept online payments - Onboard yourself with PayG Payment Gateway today!

Abandon the Digital Payment Myths And Start Using It

Digital payment is a convenient, fast, and safe alternative to offline payments. It allows users to make payments anytime from any place (home, office, etc.) without being present in a bank. In India, government bodies and financial institutions are actively encouraging people to use digital payment solutions to cut their dependency on cash and banks.

Users, too have come forward and opted for digital payments for their day-to-day basis small-to-medium value payments, bills/EMI payments, and large-value bulk transfers. From bank balance to transaction history - they check online as the apps give full functionality to them. Altogether, it is no longer the time to sit back and believe the myths of digital payments; rather it is the time to come forward and get a first-hand experience to figure out the ease of it. After experiencing digital payment, they are likely to wonder why they haven't used these earlier and understand the myths they believed till now are just baseless.

So, just be cautious when making digital payments, transact within genuine websites/apps, refrain from using public networks, and never click on any unknown links.