The technological tools like
payment
apps have radically transformed the way business transactions take place throughout the world today. Payments of goods and services through fin-tech mobile apps are a widespread phenomenon in not only the developed, but
also
in many developing countries across the globe. While there are various drawbacks and risks involved in mobile payments, they are far outweighed by the convenience and efficiency provided by digital payments.
One
of the most significant lacuna of mobile apps is that they are inherently prone to cyber hacks. Unlike banks, which provide multiple layers of checks and balances before processing a transaction, the
payment
apps mushrooming every other day are not strictly regulated. As a consequence, the credit card or bank details entered in
such
apps are at the risk of being cloned. Not only is
this
a massive exposure to
one
's savings, but
also
can inadvertently lead to money-laundering thefts. Another drawback is that shop-owners of the older generation are not as tech-savvy to get the hang of these new
payment
methods. Unfortunately, due to lack of cashless
payment
options,
as a result
, they often face loss of business to competition. To address
this
concern,
for example
, the Singapore government has recruited around 1000 Digital Ambassadors who will assist the hawker centres and enable them to accept digital payments.
On the other hand
, the efficiency and convenience of digital payments through mobile apps are manifold.
Firstly
,
one
does not have to carry cash or have the exact change to make
payment
for a product or service.
Secondly
, payments through a digital platform are automatically recorded.
one
does not have to keep track of the transaction, which makes expense management a breeze.
Thirdly
, the time taken to transfer funds between parties is almost instant.
Hence
,
one
does not have to wait for days or even hours to get a
payment
confirmation.
In addition
, mobile payments are extremely useful for purchases while travelling abroad.
One
does not have to get into the hassle of currency conversion as the
payment
is made simply by waving
one
's phone across the reader machine. The massive increase in these payments was
further
illustrated by a recent Gartner report, which cited mobile transactions projected to jump by almost 500% in the
next
5 years.
To sum up, the increasing popularity of mobile payments is going to get pervasive across all businesses and industry segments. It is
therefore
imperative, that people start imbibing the same because the benefits and future advantages will wipe off the measly disadvantages of digital mobile payments.