It may not be possible to operate a GPS on the highway or make a UPI payment at a small shop located far away in the hills, so the importance of offline payment is not lost. Offline digital payment is what we are talking about here.
Also Read: How Card Tokenization Will Affect You?
Offline voice solutions do not depend on the availability of internet or smartphone. The user can make a call to the IVR number in an offline mode and proceed with the selection of financial transaction after confirming their UPI details along with PIN on the call itself. Apart from facilitating any financial transfers, the simple and secure payment tool allows users to pay their utility bills, check balance, recharge DTH and pre-paid mobile network service or FASTag using just their voice.
By 2020, smartphone penetration in India will reach 54 percent. More than 400 million rural mobile phone users still use feature or basic phones without an Internet connection, representing a significant market share. In a country as diverse as India, the language changes at every kilometer. Hence pursuing a digital transaction in a region where Hindi or English is not a common language can be difficult.
Also read: Digital loans; RBI norms are in force
From a tech perspective, all digital transactions are done through an app or application. Like any interface, such applications are affected by bugs and server problems. It also puts forward the possibility of fraud that can occur with QR codes.
A smartphone camera can scan and decode a QR code, a square barcode, to enable quick access to a website, trigger the download of an application, and direct money to a target receiver. QR codes are frequently used by businesses to provide convenient contactless access. But unfortunately, tech experts themselves say that it is subject to huge risks.
For today’s digital payment systems to work, connectivity, hardware and digital knowledge are all essential. Mobile apps cannot be used seamlessly on non-smart feature phones or in areas with poor internet connectivity.
Possibility of offline payments
An offline payment system does not depend on internet connectivity, a smartphone, an app, or even a server.
A simple call, even from a remote part of the country, initiates a financial transaction for the user. These offline payments also work in local languages.The potential of offline payments in India is huge. Its acceptance is huge among a large number of people who don’t have network, big smartphones or technology.