Advancement in technology has resulted into a sharp increase in the number of digital payment providers. Currently, various mobile applications have tremendously influenced consumer behavior and has made these digital payments easier to carry out. Research indicates that contrary to the view that digital payments are a threat to the banking sector, they have, in fact, created myriad opportunities for the traditional banking sector. Digital payments involve any type of cashless payment that doesn’t entail a paper check. Some of the common examples of this kind of payment include: debit cards, credit cards, and internet and mobile phone payments. Payment methods have evolved so fast with the advent of technology. In the present business world, many consumers prefer digital payments as compared to traditional cheques. Despite the fact that a small portion of consumers still believe in and prefer to use cash, there is an increased preference in credit card usage, even for petty payments.
The world is rapidly transforming into a digital village where more and more consumers are embracing online transactions. Motivated by the invention of smartphones and high broadband speeds, a simple mobile is converted into a great web-accessing gadget that is capable of carrying out millions of transactions online. The customer only needs a simple application that is easy to use and that guarantees them security. Digital payment methods have encouraged expansion within businesses and have also enabled online businesses to go global in the market space. With this type of payment, small scale enterprises would be able to receive payments internationally, even though the customers may be utilizing the payment methods of the native country. It is worth noting that digital payments do not actually alter the payment logic; consumers are given the freedom of making payments from the comfort of their homes.
In conclusion, we can safely say that digital payment methods ought to be embraced globally. It is easier to carry bulk cash in credit and debit cards compared to notes and coins. Additionally, plastic money has proved to improve security and the speed of transactions. Infact, in some countries, bill payments are strictly done digitally.
Refernces:
Pandya, Nilesh. Cashing In – How banks can use the digital payment evolution. Skrill, 2013. Retrieved from http://corporate.skrill.com/2013/01/57739/57739/ on May 31, 2013.
Digital payments have helped me purchase desired items more quickly than cash payments; however, digital payments can also cause a person to pay more frequently and often. With digital payments the accessibility helps many start up companies have their customers pay for products with a swipe of the card. The new CUBE payment is an example of this quick option. Security with this is also an issue, but the pros out way the cons.
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ReplyDeleteDigital payments are the modern methods to pay electronically. Keeping you money in a "card" will cause a big safe for your wallet, because your are keeping your money in e-wallet. Moreover, the demand for electronic payments has been increased since the stealing crimes has been increased in recent years.
I really do like digital payment. It is useful, especially for paying bills. I use Bank of America and they have a website that allows users to pay their bills online. I can't imagine for people to having to go to the bank every month to just pay their bills.
ReplyDeleteThe only downside for digital payment is that it would be easier for other people to buy things that are not intended to be bought. The only scenario I could think of is having to put your credit card information on a website like Amazone. Parent's would have to be careful for their kids to not accidental buy things that are not intended to be bought.
As much as I like the idea of pure digital payments I do not see this as being a sole currency in the future. I think there will always be a demand for cash. Digital payments are just not capable of handling every type of transaction.
ReplyDeleteDigital payments are easy and very effective. For instance, I use AT&T as my mobile, internet, and home phone provider. To pay my bill, I simply go to the AT&T app and pay with no hassle or wait. It's definitely better than calling and getting charged a service fee. To me, digital payments are also safer than standard online payments because you avoid entering your personal information on a possibly virus exposed computer. Digital payments are great for those who primarily use their smartphones to make purchases. Overall, digital payments through mobile apps are fast, easy, and inexpensive.
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