As technology grows, cash strives to endure the surge of electronic payments. With more and more people equipped with a mobile device that has enough technology to run their lives, having a virtual wallet is all the craze.
Virtual wallets and electronic payments serve a purpose, especially for the payment savvy. They save time, increase sales, and reduce transaction costs. Furthermore, it’s effortless to check your expenses. But like all pleasantries in life, there are some negatives.
Compared to a cash payment or transaction, e-payments are extremely fast. Whether you’re paying for your goods online as opposed to waiting in a queue or even transferring money between accounts – electronic transactions and payments take a matter of minutes, sometimes seconds! What’s more, e-payments eliminate the security risk of handling large amounts of cash.
It’s true, anyone with a computer can perform business transactions. There are plenty of payment gateways out there that are extremely straightforward to use.
The stress of having to map out your expenses over a long period of time can be grueling. The advantages of using electronic payments are extremely rewarding when it comes to controlling your expenses.
A virtual account provides you with all the necessary information linked to a transaction, including the amount, date, transaction type, and the name of the store. In addition to this, there is the added bonus of being able to view this information whenever you like, without having to contact your bank for various statements or look endlessly through a pile of receipts.
Thanks to high-tech mobile devices and internet banking apps, users can pay for their goods and transfer money in one simple click (or tap). In recent years, we’ve seen the rise in contactless payments and Apple Pay, which results in users being able to pay for their goods without having to enter their bank details. While this is for the payment savvy, it’s fast becoming a popular method of payment.
Cash payments are slowly fizzling out, and while almost all businesses still accept cash, the amount being carried by customers is decreasing. According to the U.S Bank Cash Behaviour Survey, 76% of consumers carry less than $50 worth of cash on them, and 46% saying they use cash fewer than eight days per month.
For businesses who are yet to accept electronic payments, these figures may come as a shock and could well explain a recent draught in custom.
Although stringent measures are in place to make electronic payments safe, they are still vulnerable to hacking. Fraudsters use phishing methods to obtain important information such as passwords and credit card details by disguising as a trustworthy entity. It’s these exact security concerns that have put so many people off using e-payments.
Until we see far more superior identity verification such as face recognition or biometrics, users are at risk of being hacked and having their details stolen.
There are a number of technical issues that could prevent your e-payment from being successful. Internet and server problems such as poor signal connection can disable online payment methods. In addition to this, some banks block international transactions for security reasons. While this can be solved by contacting your bank directly, it can often result in them blocking your card – which is slightly annoying.
And then there are technical glitches, which can sometimes take days to resolve. Popular payment gateways such as PayPal will undergo regular upgrades and changes to improve its service. In some situations, the upgrades may not go to plan, which disrupts the service and can result in the platform’s server being down.
Using e-payment systems within your business come at a cost, as you’ll need to protect financial information stored in your computer systems. Businesses with in-house electronic payment software will be forced to pay out for installing and maintaining payment-security technologies.
Electronic payments are fast taking over cash payments, which is resulting in fewer people carrying cash. For small businesses, accepting e-payments could prove to be an important factor in the success of your business. In 2018, 62% of all payments in the UK were electronic payments, which gives you a clear indication of how popular this payment method is becoming.
Technology is slowly taking over, you have to evolve with it.
How do you feel about e-payment? Please, leave your thoughts in the comment box below.