Understanding Payments: Definition and Types
11 November, 2024
Synopsis
Payments involve the exchange of money, goods or services.
Various methods such as cash, bank transfers, Debit Cards and Credit Cards are commonly used.
HDFC Bank’s PayZapp supports various payment instruments, including UPI, Credit Cards, Debit Cards, and its own wallet.
We make payments almost every day, whether it is for groceries, services or while shopping. A payment can be defined as the act of transferring money, goods or services in exchange for certain goods or services in certain specific proportions. Typically, all parties involved in a transaction must agree to the payment terms. When it comes to paying money, you can make payments via cash, bank transfer, Debit Cards, Credit Card, etc. In this article, you can get more information on the meaning of payments, the different types and how you can use HDFC Bank’s PayZapp to make a multitude of payments.
What is Payment?
As mentioned above, a payment is the act of sending money to another party in exchange for goods and services. If you are the one paying, you will be referred to as the payer. The party receiving the payment is typically referred to as payee. The way to make the payment can depend on the transaction type. For instance, your local shopkeeper may only accept cash or UPI, however, you may buy company stocks via NetBanking.
When money was not the norm, payment for a particular good or service was done with another good or service. This is known as the barter system. If you were a farmer and produced wheat on your farm, you could exchange it for an equal portion of rice from a farmer who sells rice.
Types of Payment Options
The following are the various payment options typically available for most transactions:
Cash
Cash is the most traditional and universally accepted form of payment, consisting of physical currency like coins and banknotes. One of the primary advantages of cash is the immediate and tangible transfer of funds, making it a straightforward method with no need for additional technology.Bank Transfer
Bank transfers involve the direct transfer of funds from one bank account to another. You can send money via electronic transfer systems such as National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) and Unified Payment Interface (UPI).Credit Card
With Credit Cards, you can borrow funds up to a certain limit for purchases, with repayment required at a later date. Credit Cards may come with rewards programmes such as cashback, reward points or travel miles.Debit Card
Debit cards are directly linked to your bank account and allow immediate deduction of funds for purchases. They provide the advantage of immediate fund transfer. Debit Cards are widely accepted at most retail and online stores.Cheque
Cheques are hand-written, dated and signed instruments that direct a bank to pay a specific amount of money to the bearer or a specified person. Cheques can be viable for large payments without the need to carry cash.Digital Currency
In 2022, the Reserve Bank of India launched India’s very own digital currency, the e₹. This Central Bank Digital Currency (CBDC) is the digital form of the sovereign currency.
About PayZapp
HDFC Bank’s PayZapp Online Payment App is a one-stop shop for a wide range of payments. From utility bills and recharges to loan repayments and money transfers, you can carry out a wide range of payments. HDFC Bank and non-HDFC Bank customers can download the app and register using their mobile number.
Types of Payments You Can Make on PayZapp
Here’s what you can pay for using PayZapp:
Utility Bills: You can pay your electricity, water, gas, piped gas, broadband, landline, rent via PayZapp.
Recharge: You can recharge your prepaid phone plan, D2H, FASTag and cable with ease, from the comfort of your home.
Financial Services: You can pay your Credit Card bill, make loan payments, pay insurance premiums, pay Mutual Fund SIPs and pay municipal taxes within a few taps.
More Services: Besides the aforementioned services, you can also use PayZapp to pay hospital bills, education fees, subscription services fees and make donations.
Shop: You can book flights, trains, buses, etc., and buy brand vouchers via the SHOP section on the app.
Payment Options Available on PayZapp
PayZapp comes with the following payment instruments:
UPI: You can link your bank accounts to PayZapp and ensure direct debit from your bank account. You can also scan QR codes and pay via UPI.
Credit Card: You can link your Credit Cards and make a wide range of payments. You can link your RuPay UPI Credit Cards to pay via UPI. Additionally, you can pay with a single swipe with your HDFC Bank Credit Card.
Debit Card: You can link any bank’s Debit Card to PayZapp. You can pay with a single swipe using your HDFC Bank Debit Card.
PayZapp Wallet: You can load money in your PayZapp wallet to make OTP-less payments. You can also transfer money from your wallet to a bank account.
Benefits of Using PayZapp for Payment
Here’s how PayZapp makes payments easy:
Multiple Payment Options: PayZapp offers multiple payment options for your convenience.
Swipe to Pay: You can pay with a single swipe using HDFC Bank Cards and PayZapp wallet, no need to wait for OTPs.
Passbook Facility: You can track all transactions made on PayZapp in the passbook section of the app.
Earn CashBack: You can stand to earn CashBack in the form of CashPoints with various transactions. You can redeem these CashPoints into your wallet. Note that 1 CashPoint = ₹1
Access to Virtual Credit Cards: With PayZapp, you may apply for the PIXEL PLAY and PIXEL GO Credit Cards by HDFC Bank. The PIXEL PLAY Credit Card by HDFC Bank can be customised per your spending preferences. These are completely virtual cards.
How to Pay Using PayZapp
Making payments via PayZapp is simple. You can follow these steps:
Launch the app and go to ‘Bills & Recharges’.
Select the required biller type.
Choose from the list of providers.
Enter the relevant identifier: mobile number, consumer ID, landline number, vehicle number, etc. PayZapp automatically retrieves the bill details.
Verify all details and select the preferred payment instrument.
Apply any available promo codes to earn potential CashBack.
Complete the payment.
You will receive the confirmation once the payment is successful. You can view the payment in the passbook section.
Click here to make Online Payment through PayZapp on your IOS phone.
Click here to make payment through PayZapp on your Android phone.
Download PayZapp today
HDFC Bank’s PayZapp offers a convenient way to make payments. You can conveniently pay bills or recharge for services, anytime, anyplace. Simply download the app and register using your phone number. If you’re an existing HDFC Bank customer, your account details will be automatically retrieved and linked. Non-HDFC Bank customers will need to complete additional KYC steps.
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*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.