Online Payments are increasingly becoming popular and have experienced tremendous growth in the past couple of years. The ease in making payments, quick access, and many offers has made it more convincing and attractive. People all over the world are moving towards digital payment from plastic money to the extent where hot cash seems to have lost its value these days. It all started with Net Banking and VPA which was used in abundance in the initial years of payments but with the emergence of Unified Payments Interface (UPI); the ball game has completely changed course. UPI is the most preferred form of application where money is transferred immediately from one account to another. applications such as G-pay, Paytm, etc. have outperformed the E-wallet system and other modes of payment. The main objective of digital payments is to reduce the costs and risks of handling cash. 

Advantages of Online Payments (UPI):

1) Instant Transaction:

Funds are transferred immediately to bank accounts making the transaction simple and much more convenient than other modes of payment. In the case of NEFT and other bank transactions, minimal charges are taken in the form of commission which makes it comparatively disadvantageous

2) Time and cost-effective:

Unlike other transactions, there is no need for waiting for registration and other formalities. All payments can be done with a click of a button and all you need is a mobile phone in a working condition 

Disadvantages of UPI:

1) Internet Requirement: Not all people in our country have access to the internet or smartphones. Even if they do it makes it hard for older people to understand how digital payment works and its formalities and procedures

2) Transaction Limit: The biggest limitation of the UPI is that majority of the banks do not allow a transfer of more than 1 lakh. This is possible in other modes and there is no specified limit for the transaction

There are many risks associated with using UPI apps and digital payment platforms while involving third-party service providers. Recently Rs 25 crore was moved out from a bank in Maharashtra due to a bug in the UPI Applications that was procured from a vendor. Considering these risks there is a need for the proper regulation of transactions done online. There are also high chances of cyber-attacks; people may try to fool the users using dummy apps. This is due to the weak cyberinfrastructure in our country

Future of Digital Payments:

With the exponential growth in the use of the Internet; more digital consumers have started penetrating the market. There would be a possibility of even a cashless economy in the future. As of now a lot of the population is still alien to the digital world; But there  is definitely a promising future  for online users.

About Us

We speak the language of Technology & Internet. We understand how the law interacts with Technology & Internet. Cyber Crime Chambers is a boutique firm specializing in internet laws and digital forensic evidence.


B.A., B.L., (Hons) IPDP., (London)
Pgd IPR., Pgd Cyber Law., Msc., (IT)
Advocate, Madras High Court

Karthikeyan, is a renowned cyber law expert, who is also the Managing Partner of Law Office of Karthikeyan, a reputed law firm based in Chennai.

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