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A hypothecation loan is a standard option for borrowing money against a valuable asset available in your possession. Backed by collateral, this secured loan allows you to acquire a high-value sum at a comparatively lower interest rate than unsecured loans.

With this option, you do not have to hand over the deeds or the rights of the pledged collateral. Knowing the meaning of hypothecation in banking and its applicability allows you to decide whether it is the right option. Read on to know the definition of hypothecation, its benefits and drawbacks and more. 

What is Hypothecation?

Hypothecation is a type of loan where lenders offer you financial assistance against any asset without taking ownership. In simple terms, you can continue using the asset during the loan tenure without restriction. However, if you can’t pay your loan, lenders have the right to seize it. 

In most cases, you pledge the product you are taking a loan for. This way, financial institutions protect themselves against the risk of losing money. Once the loan is completely paid, you can reclaim the asset. The most common example is that of a home loan mortgage, where the property acts as collateral.

Types of Assets Eligible for Hypothecation

To better understand the meaning of hypothecation in banking, you should know the different types of loans it includes.

• Property Loan

Assume you’ve taken a loan to build a house, which you then plan to give it for rent. In this case, the property or the building remains collateral, but the bank or financial institution has no right over the generated rental income. 

• Car Loan 

When you get a hypothecation for a car loan, the bank offers you a complete loan amount for the vehicle’s value. The bank may take possession of the documents temporarily during the loan tenure. Meanwhile, you can continue using the vehicle for your daily commute or travelling. 

• Home Loan

This is another example of a hypothecation loan where you continue residing in your home pledged as collateral. This type of loan favours the borrower, as they do not have to pay EMI and rent at the same time. This makes timely loan repayment easier. 

• Business Loan for Inventory 

Hypothecation is also a great option to buy business inventory and equipment when you cannot pay in a lump sum. Using this option, you can buy raw materials, heavy-load machinery, everyday use equipment and other products needed for your business. This helps you continue the work and generate income to repay your loan comfortably. 

Also Read :  Unsecured Loans Versus Secured Loans

Advantages of Hypothecation

Here are some benefits offered by this unique banking facility to meet your financial requirements:

• You can easily obtain a large loan amount as lenders have a lower risk due to the collateral present 
• The risk of extending this loan is lower compared to an unsecured loan, so you can enjoy lower interest rates, making it a pocket-friendly option
• Since there is no requirement to make a title change or ownership transfer, it has a faster processing time
• You can continue using the pledged collateral, so it does not affect your everyday lifestyle

Risks of Hypothecation

Here are some precautions you should maintain when opting for this type of loan: 

• This loan has a higher risk of losing collateral as the bank can rightfully seize your asset and auction it if you default
• In case the lander cannot recover the entire loan amount after auctioning the asset, you may face legal action
• Due to the nature of these loans, they have a longer tenure, which can add to your financial liability 
• You cannot sell your own property or vehicle to arrange for cash 
• Defaulting on such a loan can negatively impact your credit score 
  
  Calculate your Credit Score

While a hypothecation loan has its pros and cons, not everyone has assets available that can be pledged to get a sizeable loan amount. If your collateral does not give you sufficient funds to meet your financial requirements, then the risk is higher compared to the reward. In such a case, an unsecured personal loan is ideal. 

The Fibe Online Personal Loan is one option you can consider to get financing up to ₹5 lakhs for 

your planned and unplanned expenses. Its pocket-friendly interest rate and flexible tenure of up to 36 months make it an affordable loan option. 

Furthermore, the minimum documentation and easy-to-meet eligibility criteria help you avail of a quick loan for any financial emergency. Download our Personal Loan App from Google App Store or Apple Play Store, or visit our website for a hassle-free online application process. 

FAQs on Hypothecation

What is an example of hypothecation?

Home loans, vehicle loans, and loans to buy inventory are some of the most common examples of hypothecation.

What are hypothecation charges?

When you buy the car on loan, it is bank property until you’ve repaid the complete loan amount. Therefore, the bank’s name is on the RC. If you want to remove the bank’s name, you must pay an additional fee to the RTO and the bank’s NOC. This fee is called the hypothecation charge.

Using a digital wallet has made it simple to transfer funds and make online payments to a majority of merchants. These wallets are simply an extension tool to store funds, so you can make payments without carrying your physical card everywhere. 

This not only increases your security but also makes one-tap payment easy. Since everyone carries their phone with them at all times, it eliminates the need to carry your wallet. Therefore, knowing all the features and benefits of a digital e-wallet is important. 

Read on to know what is an e-wallet, its types, benefits, limitations, and more.

Working of E-Wallets 

Knowing its working process is one way to understand the meaning of an e-wallet. As per the definition, these are applications or software-based systems that facilitate payment, fund transfers, bill payments, online booking, etc.  

To use these apps, you need to connect your debit card, bank account or credit card with the app. Mobile wallets replace physical wallets as you no longer need to carry your card to pay the bill, as you can make payments digitally. The funds get deducted from your card or bank account.

Also Read: RBI Has Made e-Wallet Safer For Users

Types of E-Wallets

Not all mobile wallets give you free rein to make payments. If you don’t know how and where to use your mobile wallet, you may find it difficult to make payments on the app. Here are all the types of e-wallets that you need to be aware of. 

Open Wallet

This type of wallet allows you to spend your money on in-app purchases and payments outside the app. Most mobile apps of banks are open wallets. You can also use this type of wallet to execute any type of transaction.

Closed Wallet

This type of digital wallet only allows you to make in-app purchases or online merchant payments. You cannot use it to send money from one account to another. One such app available in India is Amazon Pay. 

Semi-Closed Wallet

This type of wallet has limited restrictions, as you can make payments at select merchants and locations. Paytm is an example of a semi-closed wallet.

Also Read: Top online UPI payment apps in India 2024

Choosing the Best Wallet

Here are some factors to consider when choosing from the wide range of digital e-wallets. 

Benefits

• Lowers the risk of credit card and debit card information misuse
• Helpful in emergencies or to make payments if you forgot your wallet at home  
• All payments are tokenised to improve tracking
• These apps keep a record of your past payments, which can be useful in budget management 
• You can get exciting deals and offers on the app to save money on every payment
• It is a great option to make last-minute bill payments quickly to avoid penalties  
• You don’t need to maintain a minimum balance or pay additional charges 

Drawbacks

• They may have limited access or acceptability at select merchant outlets
• If your mobile gets stolen, then the miscreant can access your bank account and credit card unless you have password protection
• You need a strong internet connection to access it, which is not ideal for emergencies

Choosing from any of the digital wallet options is not a very hard decision, as they all have the best security measures in place. While you can link most bank accounts with electronic wallets, your credit card must be UPI-compliant for linking. 

One option you can choose is the Fibe Axis Bank Credit Card, India’s first UPI-enabled numberless metal credit card.  When using a digital wallet for UPI payments, you can earn up to 3% cashback with every purchase. That’s not all. It comes with a plethora of other perks. 

This includes complimentary airport lounge access at domestic airports and a 1% fuel surcharge waiver on transactions of up to ₹5,000. It is also a lifetime free credit card, so you can save more money without having to pay annual and joining fees. So, download the Fibe App to get this card right now!

FAQs on Digital Wallet

How do I open a digital wallet?

To open an e-wallet account, download your chosen app from the Google Play Store or App Store and register with your credentials. With OTP verification, your registration is complete. Then, the next step is to link it to your bank account, for which you will get the instructions on the app. Once done, you can load money into it and pay for any purchase. 

Is Paytm a digital wallet?

Yes, it is a secure and reliable digital wallet with an easy-to-use interface. 

Is PayPal a Digital Wallet?

Yes, PayPal is a digital e-wallet as you can use it to initiate online payments from your bank account or credit card. 

Do I need a digital wallet?

Having a mobile wallet is not necessary if you don’t want to. However, you can opt for this tool for a better payment experience. 

If you’re planning to purchase a property, knowing about the difference between mortgage and collateral is extremely important. You must’ve heard both of these words in the same sentences often. They’re correlated in terms of purchasing a property but are quite different from each other in terms of meaning and purpose. 

When you get a property, you can get it on a mortgage, where the property itself serves as collateral. Know how mortgage and collateral work and how they differ.

An Overview of Mortgage

A mortgage refers to a type of loan that you get to purchase homes or other types of real estate. It works in the following way:

• A mortgage loan allows you to purchase real estate without paying the full price of the property in a lump sum.
• You need to repay the loan amount as well as the interest across a specific number of years until you fully own the property.
• Most mortgages are amortised, which means your regular payment remains constant while the proportions of principal and interest vary with each payment.
• You can get a mortgage on your house for an extended duration, which typically ranges up to 30 years.
• In a mortgage, the property for which you are getting the loan serves as collateral for the loan itself.

Also Read: Complete Guide on Mortgage Loan

An Overview of Collateral

Collateral is an asset that you can pledge as security to get a loan. Here’s how it works:

• Loans for which you provide collateral are secured loans.
• In case you don’t repay the borrowed amount, the lender can seize the asset and recover the amount.
• Typically, the value of the collateral is enough to cover the lender’s loss in case you fail to repay the amount.
• You can pledge various assets as collateral, such as property, vehicles, investments, gold, etc.
• In terms of a mortgage, the property for which you borrow the funds serves as the collateral.

Difference Between Mortgage and Collateral

As mentioned above, you’ll typically often hear the words ‘collateral’ and ‘mortgage’ together, especially when getting a property. Here is the primary difference between the two:

• You can use a mortgage to finance the purchase of a home or any other property and repay the dues in instalments over an extended period.
• On the contrary, collateral is an asset that you need to pledge when applying for a secured loan.

Also Read: Secured Loans Vs Unsecured Loans

How Mortgage – Collateral Works

In simple terms, the mortgage represents the debt and the collateral is the security against that debt. Here are some points to note when discussing the features of collateral vs mortgage:

• When getting a mortgage, you need to pledge collateral, which is usually the property you’re getting the loan for.
• You need to repay the borrowed amount in instalments, including the principal amount and the interest amount over a predetermined duration
• If you repay the mortgage of the property successfully within the pre-decided tenure, you get full ownership of the estate.
• Whereas, if you fail to repay the loan within the repayment period, the lender can legally seize your property to recover the amount.

With this information in hand, you may have better clarity about collateral vs mortgage. If you need funds for purchasing property or another requirement, apply for Personal Loan from Fibe. You can benefit from an instant fund disbursal and address your needs easily. 

Since we use an alternate scoring mechanism to check your creditworthiness, you can get funds affordably even if you have a lower CIBIL score. Install the Fibe App to get the funds, or apply via the website today.

FAQs on the Difference Between Mortgage and Collateral

Are all mortgages collateral-based?

Yes, almost all mortgages are supported with collateral. The property for which you’re getting the loan is the collateral in most cases. This is one of the most significant features you need to know when comparing collateral vs mortgage.

Does the collateral act as a security for the mortgage?

Yes. A collateral is the security that you need to pledge when you take a secured loan. In the case of a mortgage, the property for which you’re borrowing funds acts as collateral.

What is the difference between a pledge, collateral and a mortgage?

If you’re seeking a loan to finance the purchase of your home, you must be hearing these words often. Here’s how they differ: 

• A pledge is a legal arrangement where you offer collateral to the lender as security to get a loan.
• Collateral is an asset that you pledge to a lender as security to avail of a loan.
• A mortgage is a specific type of loan that you opt for to purchase real estate, wherein the property you pledge serves as collateral

Got questions about borrowing vs. lending? It’s easy to mix them up, but understanding the difference is key to handling money wisely—whether it’s for personal finance or running a business. Borrowing means getting money with the promise to repay, while lending means giving someone money with the expectation of getting it back.  

Read on to know how each one works and why they’re so important in the financial world. 

Lending Money Meaning 

It is the opposite of borrowing, where a financial institution provides you with funds in exchange for a guarantee provided for repayment. In other words, the meaning of lending money is providing someone with funds instead of earning interest.  

Understanding What is Borrowing 

It is a practice where you obtain funds for temporary use with the intent to repay it with interest. The meaning of borrowing money is receiving funds at a pre-defined interest rate. 

Example of Lending and Borrowing 

To understand the difference between borrowing and lending, check out how these concepts work.  

• A borrower can request funds from an institutional lender, which can be a bank or a non-banking financial company (NBFC).  

• The lender will assess certain parameters like your creditworthiness, income, etc., to determine whether to approve your request.  

• If they extend an approval, you will receive the loan amount in your bank account.  

• The terms of the agreement of the loan will mention the tenure during which you will have to repay the loan.  

• The repayment amount will constitute both the principal amount and interest charges.  

• The repayment agreement will also contain a pre-defined rate at which the interest charges will be calculated.  

Apply for ₹5 Lakh Loan 

Difference Between Lending and borrowing 

Though both involve the transfer of money or assets, these concepts represent opposite ends of a financial transaction. Check out the table provided below to learn about the difference between lend and borrow.  

Basis	Borrowing	Lending
Meaning	It is when a deficit entity takes funds from a surplus entity on terms agreed upon mutually	It is the practice of providing money by a surplus entity to a deficit entity based on a mutual understanding
Purpose	The purpose of borrowing funds depends on the borrower’s financial requirements and objectives	Banks and other financial institutions lend money to earn interest
Flow of Capital	Capital flow from the money deficit entity to the surplus entity	Money flow from the resource surplus institute to the deficit entity
Parties Involved	Both borrowers and lenders are part of the transaction	Lenders and borrowers take part in the transaction
Terms of Transaction	In the case of borrowers with strong financials, the terms of loans are agreed upon by both parties mutually	While the terms are agreed upon mutually, the lending institutions generally dictate them
Interest Charges	Since they receive money, borrowing entities are typically at lower risk	Lenders are generally at higher risk, as borrowers can default on repaying the loan amount
Risk Exposure	The borrowers have to pay interest based on the rates pre-determined at the time of sanctioning the loan	The lenders receive interest payments along with the principal amount
Examples	A bank named XYZ provides ₹10 lakhs to an individual ABC, where the latter is a borrower	In the same example, the bank named XYZ is the lender

Now you may have understood the difference between lend and borrow on capital flow. This knowledge allows you to approach financial decisions with greater confidence. If you find yourself in need of surplus funds, explore Fibe’s Instant Personal Loan offered at competitive rates. Download the Fibe Personal Loan App or register on the application to get a loan with a flexible repayment option and minimal documentation.  

FAQs on the Difference Between Borrowing and Lending 

What is the difference between the lending rate and the borrowing rate?  

The former is the rate at which banks and other financial institutions provide you with funds and charge interest. The borrowing rate determines the interest along with the principal amount you will have to pay as a borrower.  

Is borrowing the opposite of lending?  

Yes, both these terms are opposite of each other.  

Do banks borrow or lend?  

Financial institutions generally perform both functions. While banks lend money to retail borrowers, they also borrow money from the central bank as a macroeconomic measure to control inflation. 

Having one of India’s best online payment apps on your smartphone can make it easy for you to make payments online. With this app, you can easily connect all your bank accounts or credit cards and make effortless payments. 

If you carry your cards everywhere, there is a high risk of theft or loss. This is why it’s ideal to link your cards with the app and keep them safely at home. This way, you can easily access your savings account, current account or credit card funds with zero risk. 

Top Wallet Apps in India

Here are some of the top e-wallet apps available in India that you can choose from and the process to link them. 

• Apple Pay

If you have an iPhone, you can use Apple Pay to send and receive money by linking it with your cards. It is one of the best e-wallet apps because it has Apple’s top-notch security measures. You can even make payments with the Apple Watch. 

• Amazon Pay

This is a closed-type wallet where you can add money and make online payments while shopping on Amazon. This app makes paying bills, buying insurance, gift cards, vouchers, and tickets easy. 

• Google Pay

If you’re looking for a safe digital wallet, opting for GPay may be the right choice. This app also offers several opportunities to earn cashback and discounts, with all your payments being secure and tokenised.

• MobiKwik

This is among India’s most popular names on the best online payment apps. Since 2009, it has been trusted by over 140 million registered users. To use this app, you need to link your bank account with the app, and you start spending your money.

However, if you want to access a digital wallet without linking a bank account in India, use the Pocket UPI feature. Scanning the QR code lets you make UPI payments directly from the MobiKwik wallet.

• Paytm

It is India’s most popular payment app and many other banking and financial services. With this app, you can easily save money, which can help make instant purchases, especially during emergencies. Some payments can earn you cashback and rewards when made from a wallet. 

• PhonePe

This free-to-use wallet lets you make all financial transactions securely and quickly. You can link all your bank accounts and credit cards without limit and transfer funds to your wallet with UPI.

• WhatsApp Pay

Since the merger with Meta, you can use the WhatsApp online payment app to send and receive money over chat. Once you have linked your bank account, you can transfer funds to your friends and family in just a few clicks.

Also Read: RBI Has Made e-Wallet Safer For Users.

Payment Wallets in India Issued by Banks 

Below are the few payment wallets in India issued by banks:

Bank	Application Name
Axis Bank	BHIM Axis Pay
HDFC Bank	HDFC PayZapp
Punjab National Bank	PNB ONE
ICICI Bank	ICICI Pockets
IDBI Bank	Go Mobile+ App
State Bank of India	Yono (SBI)
Yes Bank	Yes Pay

Also Read: What is Digital Rupee

Linking Cards with a Mobile Wallet

Here are the steps to link a bank account with any payment wallets in India.  

• Step 1: Launch the mobile app
• Step 2: Go to the profile 
• Step 3: Click on the ‘Bank Account’ or ‘Link Bank Account’ option
• Step 4: Find your issuer from the list of banks
• Step 5: Enter your card details 

Once you have linked your bank account or credit card with these apps, you can use either option to load your mobile wallet. If you wish to use your digital wallet without a bank account in India, you must link it with a credit card. 

However, not all credit cards can be linked with a mobile app if UPI is enabled. The Fibe Axis Bank Credit Card is one such card that allows you to make UPI-based online payments without any extra charges. 

As India’s first numberless metal credit card, it gives you up to 3% cashback on all online and offline payments. It also comes with a 1% fuel surcharge waiver and a wide range of offers and discounts for additional savings. Download the Fibe App to apply for this lifetime-free credit card now. 

E-Wallets Advantages

E-wallets provide many advantages that make them the obvious choice for several users. Here are five key benefits:

1. Convenience: The prime convenience is that it allows you to transact or make any payment anywhere and anytime. With just a few taps on your smartphone, you’ve cleared bills, transferred money, or done online shopping without needing cash or cards.
2. Security: E-wallets provide state-of-the-art encryption methods in addition to biometric authentication features. Their tokenisation ability helps you keep your financial information private from fraudsters, and your cards will never be lost again.
3. Speed: E-wallet transactions are usually faster than any other transaction method. Payments are instant, eliminating the long waits before the transactions are completed. This speed is useful mainly for merchants and consumers needing speedy and efficient payment options.
4. Rewards and Cashback: Most e-wallets provide very high benefits regarding rewards, cashback, and transaction discounts. Therefore, on the whole, the availability of these digital wallets becomes a standard mode of saving and earning bonuses on purchases.
5. Track Spending: To bring you closer to a digital record of all your transactions, e-wallets would help you easily track all your expenses and manage your budget. Trace your transaction history and control how much you spend on financial matters.

FAQs on Wallet Apps in India

Is wallet better than UPI?

The wallet acts as an intermediary between bank accounts where you can store funds and use them anytime, but UPI initiates a direct bank-to-bank transfer. You can use either option as per your preference. 

Is GPay a mobile wallet?

Yes, Google Pay is one of the best apps for wallets, which you can use to make online payments. 

Is PhonePe wallet safe?

Yes, PhonePe is a safe app with robust security measures.   

Which is the safest online wallet?

Finding the best online payment apps in India is not a difficult task. You should visit and download the app from the Google Play Store or App Store. Check the reviews and assess the security features before you choose an app.

Ever paid for something with just a tap on your phone or by scanning a QR code? That’s digital payments (or electronic payments) in action. Digital payments are transactions made electronically using devices like smartphones, computers or cards instead of physical cash or cheques. The digital payment meaning is simple. It is the secure transfer of money from one account to another through online or electronic modes.

Instead of handing over cash, the money moves digitally between banks or payment systems. It is quick, convenient and easy for you to track. Today, common methods include UPI, mobile wallets, cards, bank transfers and QR codes.

Why Choose Digital Payments?

With digital payments, you do not have to worry about carrying notes or looking for change. Just your phone or card is enough to get things done in seconds.

They are secure and every payment leaves a clear record, so you always know where your money went. You can pay anytime, from almost anywhere. And in many cases, you also get rewards or cashback along the way.

How Does Digital Payment Work?

Here’s how digital payments work:

Step 1: You start the payment using your app, card or QR code.

Step 2: The request is sent securely to your bank to check if everything is in order.

Step 3: Your bank verifies the details and approves the transaction.

Step 4: The money is digitally transferred to the receiver’s bank.

Step 5: Both you and the receiver get a confirmation message.

All of this happens within seconds, which is why digital payments feel almost instant.

Types of Digital Payments

There’s not just one digital payment method. There are many. Here are the main types available in India and how they fit into your everyday life:

1. Unified Payments Interface (UPI)

If you have ever scanned a QR code at a store or sent money to a friend in seconds, you have used UPI. Introduced by the National Payments Corporation of India (NPCI) in 2016, UPI lets you transfer money directly from your bank account using a mobile app. You do not need to enter your bank details every time. A simple UPI ID or QR scan is enough and the payment is completed within seconds.

2. Credit, Debit and Prepaid Cards

Cards are one of the most familiar ways to pay digitally. When you use a debit card, the money is deducted directly from your bank account. A credit card allows you to spend within a set limit and repay later. Prepaid cards work slightly differently. You load money onto them first and then use them like regular cards. Whether you swipe, tap or pay online, you are making a digital payment.

Also Read: Difference Between Credit Card & Debit Card

3. Mobile and Internet Banking

Have you ever transferred rent through net banking or paid a bill through your bank’s app? That is mobile or internet banking. It allows you to move money using services like NEFT, RTGS or IMPS. You can also check your balance, download statements and manage your account without visiting a branch. Everything happens online, at your convenience.

Also Read: IMPS vs NEFT

4. Mobile Wallets

Mobile wallets store money digitally on your phone. You can use them to pay for shopping, recharge your phone or send money to someone instantly. These wallets are usually linked to your bank account, debit card or credit card. It makes payments quick, especially for smaller daily transactions.

5. Point of Sale and E-commerce Payments

When you tap your card at a store counter, the payment is processed through a Point of Sale machine. When you shop online, a secure payment gateway handles your card or UPI payment. Both are digital systems working behind the scenes to make your transaction smooth and secure.

6. Bharat Bill Payment System (BBPS)

BBPS is a platform introduced by the RBI and managed by NPCI. It allows you to pay utility bills like electricity, gas, DTH and postpaid mobile from one place. Instead of visiting multiple websites, you can complete your payments through authorised channels in a simple and standardised way.

7. Aadhaar Enabled Payment System (AEPS)

AEPS allows you to perform certain banking transactions using your Aadhaar number. You can transfer funds or make payments at micro ATMs or PoS terminals using Aadhaar authentication. It is especially useful in areas where traditional banking access may be limited.

8. Unstructured Supplementary Service Data (USSD)

Do not have internet access? You can still carry out basic banking transactions. By dialling *99# on your mobile phone, you can check your balance, transfer funds or request a mini statement. It works even without data, making digital payments accessible to more people.

Digital Payment Examples

There are many ways people use digital payments in daily life. Some common examples include:

• Digital cards such as credit, debit or prepaid cards can be stored in your mobile wallet and used for online or offline payments.
• Mobile payment apps such as Google Pay, PhonePe and PayPal allow you to send or receive money instantly using your smartphone.
• Bank transfers allow you to move money directly from one account to another through digital channels.
• Contactless payments let you tap your card or phone on a machine to complete the transaction using secure technology.
• Biometric payments use fingerprint or face recognition to approve transactions securely.
• FASTag is another example where toll payments are made automatically using RFID technology while your vehicle is in motion.

What are the Fees Involved in Digital Payments?

Digital payments are usually affordable, but they are not always completely free. The actual cost depends on the payment method and who bears the charges.

Fee Type	What It Means
Platform or service fee	Payment providers may charge a fixed fee or a percentage per transaction for enabling digital payment services
Card processing fee (MDR)	For card payments, merchants may pay a percentage of the transaction value as a processing charge
GST on service fees	GST is typically applied only on the service or processing fee charged, not on the total payment amount
UPI and RuPay charges	Many UPI and RuPay debit card transactions currently do not attract MDR for merchants due to policy decisions
International transaction fee	Cross-border payments may involve currency conversion charges or additional processing costs
Chargeback or dispute fee	If a customer disputes a card payment, the merchant may incur an administrative or handling charge

Benefits of Digital Payments

Here are some of the pros of digital payments banking:

• Enables you to make transactions within a few seconds from any device
• Uses encryption and authentication to enhance security and prevent fraud
• Provides records of transactions for better transparency and financial management
• Minimises the risk of physical theft by handling transactions digitally
• Provides discounts and cashback on transactions, which helps enhance savings
• Typically involves lower transaction fees compared to traditional banking

If you prefer electronic payments, consider getting the Fibe Axis Bank Credit Card. With this card, you can make various payments or purchases with just a single tap. You can also link this card to all UPI platforms and apps for quick and easy payments. 

In addition to a seamless payment experience, you enjoy a wide range of features and benefits. These include cashback on transactions, discounts on shopping, complimentary airport lounge access and more. Download the Fibe App or apply for the card through the website without any hassles.

FAQs on Digital Payments

How many digital payment methods are there?

There are various ways of digital payments banking, such as:  

• Unified Payments Interface (UPI)
• Credit, Debit and Prepaid Cards
• Mobile and Internet Banking
• Mobile Wallets
• Point of Sale (PoS) and E-Commerce
• Bharat Bill Payment System (BBPS)
• Aadhaar-enabled Payment System (AEPS)
• Unstructured Supplementary Service Data (USSD)

What is payment type and payment method?

You can make payments in mainly 2 types:

• Online
• Offline

The payment mode or method can be the option you choose under each type, such as:

• Unified Payments Interface (UPI)
• Credit, Debit and Prepaid Cards
• Mobile and Internet Banking
• Mobile Wallets
• Aadhaar-enabled Payment System (AEPS)
• Unstructured Supplementary Service Data (USSD)

Which is the first digital payment app in India?

Launched in July 2004, Oxigen Wallet is the first electronic payment app or e-wallet in India.