INTEGRATIONOF PAYMENT SYSTEMS WITH THE ECONOMY:The integration of thepayment system into the various facets of the economy can be facilitated andaccelerated using supportive/integrating technology. Supportive technology isthe binder technology that assists in the implementation of a paralleltechnology by providing solution to parent problem. 1.
TOLLPAYMENTOne of the increasinglypopular payment methods at toll gates in India and a lot of developed nationsis ETC or Electronic Toll Collection.This technology allows the user to fit a Radio Frequency Identification deviceon the windscreen on the car and it helps in fast and near nonstop movement ofvehicles near such toll plazas. An online account is linked to the RFID numberwhich is recharged regularly using net banking/mobile banking and the amountappropriate to the vehicle is deducted online. The technology is revolutionaryin terms of decongesting crowded toll plazas and decreasing the level ofpollution. Moreover, it reduces the need of monitoring and can help improve thesafety on roads. The Government of Indiain 2016-17 launched the FASTagprogram to initiate the transition from cash to an ETC system.Currently the technology is being used in 240+ toll plazas across NationalHighways and although the program/feature is voluntary, the GoI is looking atmaking it compulsory for all the vehicles. This advancement in toll paymenttechnology has helped boost the Government’s digital India vision.
Earlier thedrivers had to pay using cash but with this technology, the ease of payment,the convenience have significantly improved. Paymentcan be done via the following media:· Net Banking (ICICI, SBI etc)· Mobile Banking· Online Payment Banks (PayTm)Thisinitiative is a part of the Digital India program of the Central Government andwe can expect the Government to beef up and replicate this at a much fasterpace. The highlight of this technology isn’t just the ease of payment but alsothe positive impact on the traffic system of India, that is bound to ease up. LATEST TECHNOLOGY:Despitetaking a stride towards an electronic toll collection system, India is stillbehind countries like US which had started it back in 1989. US currently hasmoved to a much advanced AET system (All Electronic Tolling) which employs anE-Z Transponder that works on the similar payment principles as that of theETC. The AET requires the vehicle owner to link the device to an online accountwhich must be funded with enough money for toll plaza collections. The bestthing about the new technology is the fact that the vehicles don’t need to stopor decrease their speed for toll collection.
The overhead electronic mount,on-road sensor and high resolution cameras allow automatic deduction of amountfrom the account based on the number of axles of the vehicle (higher axlesvehicles i.e. buses/trucks pay more).
In case a vehicle owner doesn’t get theTransponder, the camera takes pictures of the license plate and sends thebill/notice to the address associated with the number. The unmanned booths arethe next big thing in the toll payments and can be immensely helpful for acountry like India, which battles from immense traffic issues in its cities. Thepayment technology remains the same in case of AET:· Online payment using internet banking· Mobile banking 2. BILLPAYMENTThecurrent payment system in India is abreast with the latest technology anddevelopments. Worldwide, the developed economies have been integrated withmobile banking, internet banking and debt/credit cards. Developed nations inEurope and the US have an increasing population of Contactless cards. Suchcards are already in use in India and are gaining popularity.
Thelist of current methods of non cash payment systems in India are:· Point of sales· Credit/Debit cards· Contactless cards· Wallets(Oxigen,Paytm)· UPIs(BHIM)· Net Banking· Mobile Banking Apps· Payment Banks including IPPBTheIndian payment situation is bound to see improvement with the rise of PaymentBanks like Paytm, Airtel and the GoI’s own IPPB. With ease of payment andincreasing convenience, users are more likely to switch to non-cash mediumfacilitated by mobile banking services and UPIs like BHIM. Apartfrom Payment Banks, UPIs are also a powerful instrument in this endeavour asthey offer a common platform for multiple bank accounts. With most of theservices including stores, restaurants and government services allowingonline/mobile payments, citizens are slowly transitioning towards it.
3. UNORGANIZEDSECTOR AND AGRICULTURETheinformal sectors are slowly capturing the attention of technocrats as they areworking towards finding indigenous solutions to India’s problems. Multiplepilot projects are being developed to provide ease to the nation’s farmers andworkers. Forexample, project like LOOP have been implemented in belts of Bihar which allowthe farmers to find vendors online.
These apps help the aggregators and thefarmers locate the vendors, the market, scope of sales and finally, help themtrack the sales. Currently, the aggregators collect the produce and come backwith the earned money, saving the time and effort of the farmers. With a bit ofmore intervention and integration, payment can be done online reducingexploitation of farmers and thus increasing the prosperity of the people.