No one doubts that the usage of digital payments has been spreading out during these recent years. A lot of countries are starting to use the electronic (digital) payment system because it offers the desired security and convenience for both the seller and the buyer. First of all, it offers convenience because the old traditional payment systems either require the consumers to personally write the paper checks and send them via e-mail or they require them to be physically available in order to make payments (howstuffworks.com). Secondly, it offers security because the users of digital payments have to abide by strict confidential and personal information rules, which by breaking them, one could face serious consequences (howstuffworks.com). Digital payments are financially authorized online, and they are an exchange between the seller and buyer.
Digital payments can be defined in several ways. Electronic (digital) payments are non-cash payment that doesn't involve paper checks. Credit cards, debit cards, Visa cards, and other advanced technological ways of payment have been used a lot by people in different countries. Researchers and studies show that 84% of the overall student population are using credit cards (Mae, Sallie). Therefore, we can illustrate that the usage of digital payments does make our financial life easier and much more convenient than before.
From my experience, I found that using these new digital payments saved me more time, effort, and money. In the business field, it lowers the cost for businesses and traders, the more they spend electronically, the less they spend on paper and postage. Moreover, digital payments are very useful for people who have a fast-paced life because once you enter your account information, such as the credit card number and billing address, it will be stored in the database of the website and can be retrieved automatically. Therefore, the next time you log in again to purchase something, all you have to do is remember your username and password or use the auto-fill feature (if the site permits so). Finally, the usage of digital payments is infinite; it can be applied almost everywhere.
References:
Hord, Jennifer. "How Electronic Payment Works." HowStuffWorks. N.p., n.d. Web. 03 June 2013.
http://money.howstuffworks.com/personal-finance/online-banking/electronic-payment1.htm
Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009
"Electronic Payment Systems." N.p., n.d. Web.
Having the choice to pay digitally helps companies generate a profit faster than having to go an meet suppliers, distributors, and customer and have them pay you directly. This option allows everyone the choice to pay large sums of money for their desired products without having to continuously input information into the system. However, if information is stolen,trust is broke, and accounts and cards will have to be changed for security purposes.
ReplyDeleteI totally agree with you. The subject of safety and security financial will be discussed later in the blog.
ReplyDeleteDo digital payments really reduce the cost for businesses? I know a majority of digital payment providers charge a fee for every transaction made using their platform (~3% to my knowledge). Some companies prepare for this by including a cash price and a credit price (like gas stations). I think with the overall number of people using the digital payments the benefits outweigh the drawbacks of using digital payments.
ReplyDeleteIt would be great to see a post about how many banks are moving to mobile banking; shutting down branches and starting to introduce a more comprehensive ATM system or thinks like Remote Capture (BoA way of depositing checks from a cell phone picture).
Thank you for your comment.
DeleteDigital payments can reduce the cost of businesses is a great question and that what you guys will see in our blog next time. I can tell you from my knowledge that there is no company or business can afford you a service without charging you. but I can tell that some business can use small amount of interest or commission for the transaction they apply.
I also agree with Kayla. Having a choice helps both the business and the customers. I love knowing I can pay for certain things at my convenience, pretty much anywhere but it would not be any fun if my information was compromised. I am very thankful for a bank that is quite vigilant when it comes to ensuring my transactions are mine and if any thing looks suspicious, I am notified.
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