The document summarizes the evolution of payment systems in India from barter systems to modern digital payments. It traces the progression from barter exchange, to cash payments, cheque payments, online payments, and mobile payment applications. Each system is defined and the key advantages and disadvantages are outlined. The core information provided is the historical evolution of payment methods in India and an overview of the main systems with their benefits and drawbacks.

1. EVOLUTION OF
PAYMENT SYSTEM IN
INDIA
PRESENTED BY:
ANKIT BANSAL
&
DHIRENDRA NATH

2. WHAT IS PAYMENT?
A payment is the transfer of one form of good, service or financial
asset in exchange for another form of good, service or financial asset
in proportions that have been previously agreed upon by all parties
involved. Payment can be made in the form of funds, assets or
services.

3. EVOLUTION OF PAYMENT
SYSTEM:
1. Barter system
2. Cash payment
3. Cheque payment
4. Online payment
5. Mobile payment applicaations

4. WHAT IS BARTER SYSTEM?
A barter system is an old method of exchange. This
system has been used for centuries and long before
money was invented. People exchanged services and
goods for other services and goods in return.

6. ADVANTAGES
1. It is a simple system free from the complex problems of the
modern monetary system.
2. The problems of international trade, like foreign exchange crisis
and adverse balance of payments, do not exist in the barter
system.
3. Personal and natural resources are perfectly utilized to meet the
requirements of the society without involving any wastage.

7. DISADVANTAGE
A complication of bartering is determining how trustworthy the
person you are trading with is. The other person does not have any
proof or certification that they are legitimate, and there is no
consumer protection or warranties involved. This means that services
and goods you are exchanging may be exchanged for poor or
defective items. You would not want to exchange a toy that is almost
brand new and in perfect working condition for a toy that is worn
and does not work at all would you?

8. CASH PAYMENT

9. MEANING
A form of liquid funds given by a consumer to a
provider of goods or services as compensation for
receiving those products. In most domestic
business transactions, a cash payment will
typically be made in the currency of the country
where the transaction takes place, either in paper
currency, in coins or in an appropriate
combination.

10. ADVANTAGES
1. Instant money in hand, except taxes of course. (Hey,
nothing is entirely free!)
2. There are no transaction fees with cash like there are
with credit cards
3. Minimizes bookkeeping, which means less stress &
less hassle

11. DISADVANTAGES
1. Money in the drawer can be tempting for some employees to
steal
2. A safe needs to be on site or frequent trips to the bank for
deposits must be made, which takes time and money.
3. Money at your location increases your risk for theft not just from
employees but criminals as well.

12. CHEQUE PAYMENT

13. MEANING
A cheque is a negotiable instrument instructing a
financial institution to pay a specific amount of a
specific currency from a specified transactional
account held in the drawer's name with that
institution. Both the drawer and payee may be natural
persons or legal entities.

15. ADVANTAGES
1. The age of your customers may also be a factor, folks over
the age of 40 tend to be more comfortable with checks than
with credit cards. Checks are also better to send in the mail
for payments and invoices.
2. Checks can now be processed electronically at the point of
purchase much like a credit card but cost less to process in
most cases. If you team up with a large processor, they may
offer Point of Purchase check processing (P.O.P).
3. A check is usually better than a customer walking out the
door because they don’t have cash or plastic.

16. DISADVANTAGES
1. Just because you have a check in hand, that doesn’t
guarantee payment; bounced checks can even cost you
money. Depending on your bank, they may assess fees for
these bounced checks.
2. Customers can put stop payments on checks, close their
account, and even post-date checks if the cashier is not
paying attention. All of these delay payment.
3. If your bank does not offer remote capture, you again will
be spending time and money away from your business
driving to the bank regularly, hoping these are more than “I
owe you” notes.

17. ONLINE PAYMENT

18. MEANING
Online payment refers to money that is exchanged
electronically. Typically, this involves use of computer
networks, the internet and digital stored value systems.
Online payment usually is the transaction that results in
transfer of monetary funds from the customer bank or
credit card account to your bank account.

19. ADVANTAGES
1. Time savings
2. Expenses control
3. Reduced risk of loss and theft
4. Low commissions

20. DISADVANTAGES
1. Restrictions
2. The risk of being hacked
3. The necessity of Internet access

21. MOBILE PAYMENT

22. MEANING
Mobile payment (also referred to as mobile
money, mobile money transfer, and mobile
wallet) generally refer to payment services
operated under financial regulation and
performed from or via a mobile device.
Instead of paying with cash, cheque, or credit
cards, a consumer can use a mobile to pay for
a wide range of services and digital or hard
goods.

24. ADVANTAGES
1. They're fast.
2. They're secure.
3. They're widely accepted.
4. Everything's on your phone.

25. DISADVANTAGES
1. Even if they are accepted, they aren't all accepted.
2. Payments are tied to your phone.
3. They're easier to track.