10. Save Time & Money
One of the main benefits of going cashless is that it can save the elderly a lot of time and money as well. The various payment options available ensure that seniors can make faster payments.
Elders can also save money by opting for digital platforms that do not charge any transaction fees. Not only will this be helpful in saving money , but it can also prove to be beneficial for their overall budget.
So, these were some of the main reasons why seniors must go cashless and embrace the era of digitization.
Although it may be somewhat difficult for the elderly to fully understand the concept of digital transactions, they can ask for guidance from their close ones or they can attend various tech sessions with the Evergreen Club.
9. Budget Discipline
Going cashless is one of the best ways for seniors to understand their spending habits, as they can use different apps to track and analyse their transaction patterns as well.
This will help them to understand their expenses and will also allow them to plan their budget in a much better way. Developing a budgeting discipline also plays a key role in achieving financial independence.
8. Track Your Spending
The first step towards financial independence is to maintain a regular weekly/monthly budget. This is even more important for seniors who depend on their pension and other life savings.
Digital payments allow the elderly to stay on top of their overall spending with easy-to-access bank statements and records of all transactions. This will also allow the elderly to develop the habit of
7. Physical Distancing
One of the main benefits of digital payments is that it promotes safe and contactless transactions. With the Covid-19 crisis still looming over our heads, avoiding physical contact is of utmost importance.
Elders are known to be at a higher risk during this crisis. Opting for digital payments is, therefore, one of the best ways for seniors to stay safe during the Covid-19 pandemic.
6. Convenience During Travel
Gone are the days when we had to carry large amounts of cash during any outstation travel. Today, retailers all over the country have understood the importance of going cashless and have started accepting digital payments.
Thus, elders can now easily travel to and from other cities in India, without having to worry about finding an ATM or running out of cash.
5. Offers & Discounts
In order to promote digital payments, banks as well as other financial institutions regularly offer different types of offers and discounts for their customers.
Elders can benefit from these offers and can even receive regular cashbacks, rewards and discount vouchers for their digital payments. Moreover, some banks and digital wallets provide special rewards and offers for their senior customers as well.
4. Different Options
Right from debit cards and credit cards to digital wallets like Google Pay and PhonePe, seniors can now choose from a wide range of options for their preferred mode of digital payment.
This gives the elderly an opportunity to conduct financial transactions without the fear of falling short of liquid cash. Also, one of the main reasons why seniors must go cashless is the…
3. Seamless Transactions
Since digital payments have been around for quite sometime now, the process has become easier than ever, especially for seniors. Showrooms, malls and even small shops have now started accepting digital payments.
The whole transaction process has also become seamless, as buyers can now make payments using their mobile banking apps or other digital wallets.
2. More Convenient
Standing in long ATM queues just to withdraw a small amount of cash is hardly an exciting activity for anyone. However, most seniors have to face this scenario every time they step out to buy something.
Digital payments, on the other hand, offer increased convenience for the elderly as it allows them to easily conduct financial transactions without having to worry about whether they have adequate cash in their wallet.
1. Increased Security
Carrying cash at all times can be a risky decision. This is why senior citizens are common targets of small thefts or robberies. One of the main advantages of digital payments is that they are much more secure than regular cash transactions, as they require proper verification and authentication.
Banks and other digital payment platforms also provide added security for digital tansactions in the form of OTPs and cross-verification, which can help in preventing fraudulent transactions.
Different Digital Payment Methods
There have been various different digital payment methods in India. Some have gained prominence just recently, whereas some have been there for more than a decade now.
The Unified Payment Interface (UPI)
A unified payment interface, or UPI, is a payment system that combines various bank accounts into one application, and money can be transferred easily. Through UPI, money transfers can take place with just a few clicks. One of the features of UPI[1] is that you can pay directly from your bank account to another person’s bank account without the need to type in card details. This method of payment has become one of the most common ways of digital payment among people. What it took credit cards decades to achieve in India, UPI took only 2 years.
Mobile Wallets
A mobile wallet is a place where a person can store money in digital form. People may choose to add money from their linked bank account to the mobile wallet and use the money to make payments, etc. Many banks have launched their own wallets, and many private players have established mobile wallet services for customers. Some of them are Paytm, PhonePe, MobiKwik, etc.
Internet banking
Internet banking can be used through a bank's website. All you need is a stable internet connection to make payments or transfer money. Today, many Indian banks offer the services of internet banking. Every payment gateway in India provides a virtual banking option to its customers. NEFT, RTGS, or IMPS are a few of the standard methods through which transactions can be done via internet banking.
Mobile Banking
Another option for digital payment is mobile banking. It is the manner of conducting transactions and banking activities through mobile devices. Various banks provide access to mobile banking apps, which can be accessed from mobile phones. Mobile banking services can be categorised into access to account information, transactions, investments etc. Mobile banking is known for its convenience, speed, and seamless experience. Consumers can access mobile banking from anywhere and at any time.
Banking cards
Transactions through banking cards have been one of those methods of digital payments that have been prevalent for a long time. Indians use banking cards such as debit cards, credit cards, or prepaid cards as an alternative option to cash payment. People prefer to use these cards as they are secure, convenient, and can be easily carried wherever you go. Today, there are various apps that have been launched to manage card transactions, such as Cred, etc.
Unstructured Supplementary Service Data
Unstructured Supplementary Service Data, or USSD, is a method through which transactions can be made even without an internet connection. Customers may avail this option by dialling *99#, which is a common number across all telecom service providers, and transacting via an interactive menu shown on their mobile screen. Some of the key services offered under this method of digital payment include interbank account to account fund transfer, balance enquiry, mini statement, and various other banking services. Today, many leading banks offer the *99# service. It is a unique interoperable service for consumers that brings diverse ecosystem partners like banks and telecom service providers together.
The Aadhaar Enabled Payment System
AEPS is a payment system that is based on the unique identification number of the aadhaar card. It allows Aadhaar cardholders to make financial transactions seamlessly through Aadhaar-based authentication. This digital payment method was introduced to ensure financial inclusion and to empower all segments of society by making financial and banking services available to all segments of society.Through this method, one can easily transfer funds, make payments, deposit cash, withdraw money, know the account balance, etc. In order to use this feature, your bank account should be linked with your aadhaar.
Micro ATMs
Micro ATMs are devices that deliver banking services to customers. Business correspondents, who may be local store owners, can facilitate a Micro ATM to perform instant transactions. Through this device, one can transfer money from your aadhaar linked bank account by finger authentication.
Some of the major services that can be accessed from this micro ATM include withdrawal, deposit, money transfer, and balance inquiry. The fundamental requirement to access these features is to link your bank account with Aadhaar.
PoS Terminals
Another method for digital payment is through point-of-sale terminals. It is the location or segment where the sale takes place. You may have noticed it in the malls and stores. The common type of POS machine is used for debit or credit cards. Customers can just swipe their cards at such a machine and enter the PIN.
Now, modern POS digital payment methods have also been introduced, which include a contactless reader of the POS machine, wherein without the need for a PIN, one can easily debit an amount upto 2000 rupees by auto authenticating it.
Prepaid cards
These sorts of cards are issued by banks, which is different from a debit card. In the case of debit cards, you can use them numerous times, but the same cannot be said for prepaid cards. In order to get a prepaid card, you need to have a KYC complied account. Some common use cases for these cards include corporate gifts, rewards, etc.
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