Online or through other digital channels, digital payments are exchanges of money that don’t involve a physical exchange of currency. This shows that electronic ways of exchanging money are used by both the payer and the payee.
The government of India has been putting into practise a number of measures to encourage and promote digital payments. As part of the “Digital India” initiative, the government seeks to create a “digitally empowered” economy that is “Faceless, Paperless, and Cashless.” Digital payments can take many different forms.
ADVANTAGES OF DIGITAL PAYMENT
Wider Reach: By using an internet platform, digital marketing helps increase product and service recognition and connect with a large international client base. With the use of this tactic, even startups may compete with established businesses in the traditional market.
Brand Development: It’s important to build the product or service’s brand through a marketing campaign so that consumers will view it as a reliable and reputable name. Through numerous direct marketing initiatives and personalized strategies, digital marketing supports in brand development. Customers are more engaged due to this technique, and they get to understand the brand’s value and Uniqueness. Customers develop a positive opinion of the brand as a result of this.
Personalization: The digital marketing approach is most successful when it allows for customer interaction and feedback. Building brand loyalty and reputation involves getting the audience and the product that fits their needs closer to each other. By developing personalized content for customers, digital marketing provides a platform for personalized marketing. The goal is to give consumers the impression that the company is attending to their specific needs.
Accessibility: Marketing strategies using digital platforms give both consumers and sellers the chance to get simple access with the flexibility of time and place. Potential clients receive information about the services and the availability of the product range along with a virtual store experience. Customers can provide suggestions and feedback that help businesses plan their marketing efforts in a way that better meets customer needs.
Greater engagement: Digital marketing enables the brand to increase recognition among consumers and raise brand awareness. The brand can attract customers’ attention and establish credibility by using an effective promotional plan that makes use of blogs, social media content, and promotional offers.
Increased sales:The number of people making cash payments is falling as online banking and shopping become more popular. More than two-thirds of consumers carry less than $50 per day, thus electronic alternatives are gradually taking over as the preferred payment method, according to Bank rate. As a result, accepting electronic payments gives businesses a competitive edge over those who solely take traditional payment methods by allowing them to sell to customers who prefer to do so.
DISADVANTAGES OF DIGITAL MARKETING:
Skill Requirement: In order to properly execute marketing activities, it is necessary to amass the necessary knowledge and competence on the digital platform. In order to react fast to any changes, it is crucial to keep up with the latest tools, platforms, and techniques given the constant improvements in technology.
Time-consuming: Planning and carrying out several duties related to internet advertising optimization and producing appropriate content for promotions can take a lot of time. To guarantee a return on investment, it’s also crucial to regularly monitor the results and adjust strategy.
High competition: To reach a larger global audience through digital marketing, you must also develop the skills necessary to compete internationally. Establishing the brand against more rivals and grabbing attention among the numerous digital channels running real-time campaigns might be difficult.
Complaints and feedback: Digital platforms enable anyone to offer comments or complaints about your goods or services, which can then be seen by your audience on social media platforms and review sites. If you don’t have a strong foundation through brand loyalty and effective customer service, any unfavourable review could have a detrimental effect on a segment of your consumer base. Maintaining the reputation of the brand while effectively handling criticisms is difficult.
Conflicting transactions:To report an unauthorized use of your company’s electronic funds to your bank, online payment processor, or credit card provider, you would need to identify the strange charge. However, it may be challenging to succeed in the claim and get a refund if there is insufficient information available about the person who completed the transaction.
An increase in business expenses:E-payment systems raise the requirement for security measures to prevent unwanted access to sensitive financial data kept on a company’s computer systems. Businesses utilizing internal e-payment systems must spend more money on the acquisition, setup, and maintenance of advanced payment-security solutions.