India's retail industry is undergoing a technological revolution. Due to pandemic, customer’s shopping habits and purchasing preferences have changed considerably. As online shopping becomes more popular, digital payment methodology will be a driving force for shifting the taste of buyers, this reveals a formerly unexplored market for retailers.

As a result of the pandemic, Indian retailers are majorly spending in digital technologies such as artificial intelligence, contactless payments, and machine learning in order to recreate themselves for consumers at every point of interaction. At the second wave of pandemic digital payments for retails and e-commerce have increased by 260% wherein the big and small traders are both adopting the new payment methods.

Let’s look what is influencing retailer to adopt these new payment methods and how it is keeping them ahead of the game:

• Opportunity of Embracing the First-Time Users- Customers were using online shopping since long but during pandemic situation online shopping has increased to everyday needs, including food and apparel but one of the largest barriers of digital payments in India is people are unaware about the benefits or offers provided to them. Due to pandemic the behavioral shift in the people’s mind is observed and scenario changed as people are exploring the various digital payments and their advantages. For first-time buyers in India, the pandemic has accelerated the use of digital payments, and they are rapidly adopting the new mode of purchasing using their mobile phones. Digital payments are widely accepted and people are becoming more aware of the advantages of many platforms including e-commerce.
• Rising usage of Digital Cards:  Digital cards have become increasingly popular and in this pandemic the usage of digital cards has grown more, as they are simple contactless payment method to transmit and use. Surprisingly the usage of online purchasing led to rise in gift card demand among customers looking for other ways to pay digitally.
• Increased retail competition and innovation:  In this technological era, consumers must be feasible while serving their customer whether providing any new product or upgrading the existing product or features. Retailers should focus on connecting with the consumers and provide features as per their preferences, The key to develop loyalty in new-age shoppers will be to embrace shifting buyer behavior and persuade them to return by giving value.
• Understanding retail personalization using digital payments: With the changing customer behavior their expectation on digital payment options is also growing rapidly. There is a huge opportunity for agile brands to outperform their competitors and achieve greater success. Various digital payment features like e-wallets, buy now-pay later, QR codes etc., these solutions are altering the payments industry. These new emerging options can not only differentiate themselves from other competitors but it can also meet the customer needs.
• Launch of e-RUPI: Prime Minister Mr. Narendra Modi introduced e-RUPI a purpose-specific online payment service, via video link on August 2, 2021. e-RUPI is a digital payment method that is both cashless and contactless. It is an e-Voucher that is distributed to the beneficiaries' mobile phone by QR code or SMS string. Users of this smooth one-time payment method will be able to reclaim the voucher at the provider without the need for a card, online wallets app, or online banking access.
• Growth of Digital Payment in India: The COVID-19 pandemic has boosted the expansion and uptake of online transactions in India, despite the fact that the country's digital payments business has grown rapidly in recent years following demonetization in 2016. Users have turned to online banking and some other electronic payment methods to get essential goods, grocery, retail, health products, education, and other services. But at the other hand, one of the primary elements driving the payment systems firm's growth in the country is the development of enhanced technologies such as blockchain technology, cryptocurrencies, cloud- based payments, and other payment option Artificial Intelligence (AI), Machine Learning (ML) and IoT are already making progress in the country.
• UPI Adoption: Ever since the launch in 2016, Unified Payments Interface (UPI) has witnessed massive popularity, which has been boosted by the Covid-19 pandemic, In October 2019, it surpassed 1 billion transactions for the very first time it. The following billion deals were completed in less than a year. October 2020, UPI handled over 2 billion transactions. Thereafter, the jump from 2 billion to 3 billion transactions per month took only ten months, demonstrating UPI's enormous popularity as a medium for retail electronic payments among users. During 2016-17 and 2020-21, UPI accounted for 10% of total retail transactions (with the exception of real-time gross clearance) and grew at a CAGR of 400%. UPI had barely 2% of total retail transactions until several years ago. Interoperability, an open forum, convenience of usage, and no merchant discount are all factors that have contributed to UPI's phenomenal success.

Retailers are able to drastically transform and streamline the traditional retail experience thanks to digital payments. The wonderful aspect is that this transformation is already taking place. The new goal for retailers investing in new-age digital payment technologies is to replace their traditional retail payments methods with digital payments in order to achieve growth.