How Digital Payments Can Benefit You
Do you want to send money to a friend? You can send the payment from your smartphone.
Do you want to pay for coffee at your favorite restaurant? You can just swipe your card.
Do you want to contribute to an online fundraising campaign? There are several platforms that can help process your donation digitally.
In short, these days you don’t need cash to make a payment or send money. Digital payments technology has revolutionized how we send and receive money. It wasn’t always like this, though. As recently as the turn of the new millennium, millions of Americans still had to go to their banks and make transactions.
But, are electronic payments any better? In this article, we’re fleshing out the various benefits of digital payments.
Read on!
Unparalleled Convenience
When was the last time you physically visited your bank to make a transaction?
If you’re anything like the average American, it’s been a minute. Of course, the COVID-19 pandemic has played a big role in this, but even before it started, trips to the bank were on the decline.
And, if you can remember the last time you were there, you probably didn’t like the experience. You probably had to queue or wait for your turn to be served. And before that, you had to schedule for the trip and commute.
With digital payments technology, that’s now a thing of the past. You can send and receive money at home, in the office, in the gym… literally anywhere, as long as you have a smartphone and access to the internet. In other words, this technology offers unapparelled convenience.
If a loved one is facing an emergency at night and they need financial help from you, you don’t have to worry about whether your bank is open or not. As long as you’ve activated the internet banking services offered by your bank, you’ll be in a position to send them money.
Zelle (https://www.farmersbankidaho.com/personal/zelle-faq) is one such service you can count on. It enables you to send money from your phone to anyone in the United States, as long as they’re also registered for the service.
Reduced Transaction Costs
Digital payments platforms save you money both directly and indirectly.
The internet enables banks and other financial services providers to lower their operating costs. Since a wide range of banking services can be offered online, these businesses no longer have to incur a lot of money on expenses such as buying or renting a commercial space and hiring staff. With reduces operating costs, they’re able to pass on the savings to their customers, in the form of reduced transaction costs.
Sending money online isn’t as expensive as making a traditional wire transfer. Although the cost of sending and/or receiving money online varies from provider to provider, it generally won’t cost you an arm and a leg. In fact, some service providers don’t charge anything to send or receive money online – terms and conditions apply, of course.
There are a number of ways digital payments will save you money indirectly. Think of all the time you used to spend on your commute to the bank. There’s also the cost of gas if you had to use your car on the commute. If you use a taxi, you’ll pay for the service.
Online banking eliminates or reduces trips to your physical branch. This means you’ll save the time and money you’ll have spent on the trip.
Contactless
Although the U.S. has made significant strides in tackling the COVID-19 pandemic, the virus is still with us, owing to its ability to mutate rapidly. The Delta variant is causing infection spikes across the country.
One of the containment measures that has been implemented is social distancing and avoiding contact with people and surfaces as much as possible. Can you imagine how hard this would have been had cash been the primary way to make a payment?
Digital payments technology enables contactless payments. You can send money to a friend or family member without coming in contact with them in any way. You can make a payment for a good or service online, which means you won’t be in contact with anyone at the store. In fact, the entire ecommerce industry is driven by digital payments technology.
High-Level Security
A big concern for people who make digital payments is security. It’s easy to see why. Hackers and scammers are on the loose, prying on innocent victims and stealing their bank account details.
A 2020 global study established that digital payments fraud increased 35 percent, driven by the pandemic.
When you’re making an online payment, you don’t want to put your personal and financial information at risk. The good news is that digital payments security has come a long way. Today, online payments platforms have the toughest security measures, making it almost impossible for hackers to gain access.
However, online security is two-faced. While digital payment platforms are doing the most to enhance security, their efforts will be of little value if you’re not security-conscious. There are things you should do, such as checking the authenticity of a website, before you resolve to make a payment through it.
A Great Tool for Businesses
If you’re a business owner, you stand to gain a lot from digital payments technology.
One, your sales will likely increase if you’re accepting various digital payments. Consumers want freedom. They want to pay through a digital platform of their choice. If your store, offline or online, allows them this freedom, they’ll be encouraged to pay from you.
Two, digital payments technology makes it easy to pay your vendors and service provider. No more writing checks or making deposits that take some time to be effected. Digital payments are typically instant.
Reap the Benefits of Digital Payments Technology
If you’ve been on the fence about embracing digital payments, you’re doing yourself a big disservice. Making digital payments is fast, safe, and highly convenient. No more trips to the bank or credit union. The present and future money is in your hands or pocket!
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