In many countries, paying for things using mobile phone apps is becoming increasingly common. Does this development have more advantages or disadvantages?

The popularity of payments through mobile phone applications is growing in many countries.

Although

it has a number of drawbacks like private data to be hacked and illegal cash transfers out of countries, there are significant benefits like better payment management by government and ease of funds transfer. I strongly believe that

this

trend has more advantages as compared to any disadvantages.

To begin

with, Electronic devices and E-transaction systems have always been prone to hacking attacks,

such

attacks are inevitable because hackers are

also

evolving with increasing security measures to protect payment application users. Another problem that could severely affect poor nations is that electronic pay does not need to be physically moved and

hence

, people can easily take wage out of underdeveloped countries that are already suffering from many financial challenges.

For example

, Bloomberg published a report recently revealing that rich businessmen in China are moving their undeclared assets and fund to Canada to get permanent residency in exchange.

This

wealth theft is costing China almost 2.7% of its GDP annually.

On the other hand

, E-transactions are much safer as compared to cash dealings. People can transfer enormous amounts of payment anywhere with just a few clicks via Internet banking. It provides an advantage to people for not being bound to specific business hours to meet and deliver paper money. Another obvious benefit of payments through phone applications is that governments can easily follow the money trail to avoid any discrepancies in levy collection.

That is

to say, corruption issues pertaining to duty payments could be curbed which is a cumbersome task in cash transactions.

For example

, Pakistan, within 6 months of launching PayPal, collected 568 Billion rupees in tax which used to be around 250 Billion rupees prior to

this

development. To conclude, while there are numerous issues associated with payments by cellphone applications like the constant threat of financial information hacking and foreign money transfers, it has many key benefits including the facility of easy funds transfer by the Internet and fair tax collection for the improvement of society. In my opinion, the advantages of deposit through phone applications greatly surpass any disadvantages it might have.