It was those days when traditional payment methods were in force. People used to pay in the actual cash, which challenged and exposed the customer to unacceptable situations like losing money on the go and theft. Also, the traditional payment methods made human lives slower financially. Transacting money, withdrawing, paying for goods, and funds security has always been a situation for a customer to think about twice.
However, people’s motive to make their lives easier and more convenient made them fastly adapt to the newer circumstances and situations, which introduced them to the technology. The technology’s motive is to provide the best for its users. With today’s technology, the customers are more comfortable and feel at home while doing something online. And this has become the situation in the finance field too.
With newer technological tools available, customers can transact money without any second thoughts, enjoy the contactless deliveries, and above all, they do not have to worry about the security of the funds. Everything is at the fingertips of the customer.
Steps like being open to the new technologies like Artificial Intelligence, Machine Learning, and blockchain technology, using the power of internet banking, working on mobile payment apps, and being adaptable to the wallet and QR code systems were some of the custom payment solutions provided by the online payment service provider.
However, not only did technology make the customers’ lives easier, it also had its dark face. While it made the money cycle easier, there are a couple of things worth fostering.
The advantages and disadvantages of digital payment solutions include:
Advantages:
- Security
- Convenient Payments
- Seamless Transactions
- Multiple Options
- Travelling Facility
- Tracking Spendings
- Offers and Discounts
Disadvantages:
- Security Concerns
- Technical Problems
- Limitations
- Rural Areas
Advantages:
Security:
Carrying cash is not always a safe step. In general, senior citizens carrying cash exposes to fund scams and other small thefts. One of the advantages of e-payment systems is that they ensure secured payments with proper verifications before any transactions. Sometimes, various banks and online payment apps provide tight security by asking for OTPs for cross-verification to help with fraudulent activities.
To stay on the safe side, customers must create hefty passwords, and senior citizens need to educate about the working of digital payments.
Convenient Payments:
One of the best features of online payments is that customers do not have to wait in the lobby for hours at banks to perform a simple transaction. It is up to the customer to transfer the funds using different online payment methods such as net banking, UPI, mobile wallets, and the banking cards like credit or debit cards. The payments through these methods can work for any purchase from anywhere.
There are certain places where only a few payment methods are available. In such cases, various online payment methods come into force.
Seamless Transactions:
Online payment methods provide uninterrupted transactions compared to the traditional system, which requires a set of rules to follow, like the authorized signature and filling forms. In seamless transactions, the customer must enter the password and OTP (if asked), and the transaction completes.
Multiple Options:
The online payment system brought multiple options for a customer, which made their lives even more convenient. If one method does not work, they can immediately go for the other option.
Traveling Facility:
Back then, when customers wanted to go on a vacation, they had to carry the bundles of cash, and sometimes exchanging the currency could break their heads. But now, since everything is digital, customers can travel the world paying for everything with a single tap on their mobile phones.
Tracking Availability:
Tracking expenditure is just as crucial as earning money, and mobile payment apps help the customers do that. Since the online payment apps save the behavior of its user, the customers will be able to go through their monthly data to understand where most of their money is going.
Offers and Discounts:
Having an account in one of the top banks can benefit the customers if they own a debit or credit card. During religious and national festivals, various eCommerce brands declare sales for debit or credit card holders of a particular bank. So, the customers can avail the opportunity.
Disadvantages:
Security Concerns:
Although government controls most of the reputed payment systems, there are third-party sites where most scams happen. These sites redirect the customer from a website to the perfectly designed landing pages that look original, where they pay the bill with sensitive information like their Gmail, contact number, and address. Later, only to realize that it was a scammer’s website.
Limitations:
There are certain banks and gateway apps that set a daily transaction limit. After reaching the limit, the customer cannot perform any transactions and must wait for a new day. During emergencies, this can affect the customer the most.
Rural Area:
Most people living in the countryside use the traditional payment methods as they are illiterate about digital payments. Though they knew about digital payments, tier-3 cities may still face problems with the digital payment systems since the customers there cannot access the proper internet.
Technical Issues:
Online payment systems are vulnerable to technical issues. Sometimes the problems with the software of the online payment method can restrict the customers from using it. When a customer does not have alternative ways, this affects the most.
Conclusion:
In this digitalized world, everything seems trustworthy. However, before concluding, it is the customers’ responsibility to research a particular thing before putting their hard-earned money into the scammers’ hands.
