Last Updated on January 12, 2024 by Umer Malik
In this digital world, a big number of payment transactions is still carried out via cash. Cash payments are risky for several reasons. For instance, carrying cash for making a big-ticket purchase poses security risks and makes transaction points exposed to theft as well. Not only this, miscounted money, misplaced payments, and robbery are other risks associated with cash payments.
Due to the advanced mobile technologies and payment solutions, more and more businesses & consumers are moving to digital payments as they are convenient for customers and provide lots of opportunities for businesses to grow at a faster pace.
In this article, we will shed light on how online payments are enabling a shift away from cash and what are the advantages of carrying out online payment transactions.
Table of Contents
On-the-go Payments via Mobile Apps
Online payments are much more efficient and faster than traditional methods. Almost all digital payment portals are offering their services on mobile via fast and easy-to-use mobile applications. Be it a matter of making utility payments or you just want to pay the funeral insurance premium, you can do it all by using your smartphone. You just need to install the app of your ideal online payment solution and you are all set to make online payments whenever you want. You can make important payments easily even when you are on the go. This helps you avoid late or missed payments.
With the risks of theft, loss, and counting errors, cash payments are unsecured. On another hand, demonstrating the security of payments is a top priority for digital payment portals to deliver an excellent online payment experience to both customers and businesses. Due to the no involvement of cash, digital payments are secure and faster. Biometric verification, thwo0factor authentication, and real-time alerts make online payments efficient and secure for anyone. Furthermore, businesses and banks also use advanced security technologies like real-time encryption to keep the payment details of customers in safe hands. This is not possible with any other payment method.
Building Credit History
Mobile apps provided by digital payment solutions usually don’t require a bank account or card while enabling consumers to build good credit scores. As wise use of the best credit card is a great way to build good credit, most of online payment solutions also report payment history to credit bureaus to help consumers build and improve credit scores. Not only this, instant loan features offered by digital payment portals also provides quick access to credit so consumers can fulfill their financial needs without applying for traditional loans. By paying down the debt or loan on time as per agreed terms, consumers can earn good credit scores.
Easier to Manage
Money management is made easier with electronic payment methods. Several digital payment solutions also offer online tools and apps to help users manage their personal money and other payment transactions so they don’t have to do it manually. Thanks to digital payments, they can have real-time access to payment history or transaction details to manage their accounts. Furthermore, businesses can also integrate online payment history into their accounting systems for better and streamlined bookkeeping. This is another time-saving benefit of online payments enabling a shift away from cash.
Reduced Carbon Footprint
Opting for online payments could be a great contributor to reducing carbon footprint. As more and more people are switching to online payments, the need of creating currency notes will be reduced. Instead of using currency notes, they will be using their mobile phones for sending and receiving payments. Not only this, they can also opt for e-statements to get their transaction details history in the soft form that they can easily view using their smartphones or computers. Not printing the monthly statements will also eliminate the need for paper to reduce carbon footprint.
Online payments are convenient and faster. When payment is made using a digital portal, both the sender and receiver are informed in real-time via email or text message. The immediate confirmation offers peace of mind to both parties. They also get digital receipts that are easy to share via instant messaging apps like WhatsApp or Messenger to keep the concerned people informed.