Introduction
Digital mode of payment has recently experienced a surge. It has become a trend now under the leadership of our Hon’ble PM that almost every generation of this country has started trusting the online mode of operation for a lot of things including digital payments.
The need of the hour of our economy is flexible payment and repayment options and that is why EMIs are so much preferred these days. Let us dig deeper into this subject.
Payment Gateways
The payment gateways coordinate between all these stages and keep each party up-to-date with the progress of the transaction at the moment instantly. Payment gateways act as a middleman that works between a customer and a merchant and ensures that the transaction is carried out promptly and securely.
What is a payment gateway?
It is a medium through which all the parties involved in the online transaction like:
- Merchant- an online business operation running any kind of business that may offer goods or services.
- Customer- this is you, the cardholder who wants to avail of these services or goods provided by the merchant.
- Issuing Bank- the band of the customer that is used for such a transaction, payment could be done through either net banking or cards (Debit or Credit)
- Acquiring Bank- the band at the receiver’s end, the bank that maintains a merchant’s account.
There are a lot of fintech companies that are into this line and if you’re confused regarding which one to opt for, consider Sharat Chandra Onion Credit to give you the best advice and guidance.
eNach or eMandate
Both of these provide the same result just the implementation is different. How?
eNach is an electronic process used by banks, government bodies, or other financial institutions to provide automated payment solutions or services. This is a process that takes permission electronically from the account holder to debit a certain amount automatically when due.
Whereas, the mandate is a process that is done partially manually. The permission here is taken on a written form, signed physically by the account holder for double security and caution. It takes up to 7-14 business days for this method to get implemented. The result is the same.
Other payment options
There are other repayment options as well. There are services that aid in the timely repayment of loans like the newly launched PayTM loan payment option or for repayment of credit card dues- CRED. The earlier mentioned methods were typically web pages whereas these are mobile applications.
Conclusion
The latest repayment methods that are mobile applications have a very promising future as most humans are always stuck to their mobiles and do everything from it. Hence, to be able to perform the functions of banks through one’s mobile phone sounds extremely refreshing and lucrative. Companies like PayTM and CRED already have a good reputation and are widely trusted by customers. These applications will soon overtake the operation of payment gateways and leave them redundant as is predicted by Sharat Chandra Onion Credit.
