With lives spanning across various new changes, things and activities continue to get simplified for us. Right from our idea to travel to making payments, everything seems to be replaced but the advent of technology. Today, even the payment sector has adopted the easiest and digitised technique to make payments convenient. These are all classified under the wide term called digital payments. Digital payments are convenient, because they provide easy steps to make payments from anywhere and at any time.  The advent of digital payment dates back to the late eighteenth century, but currently, it is the leading and most convenient payment method. The digital payment services are availed because they are convenient and simplify payment for all age groups. 

Before knowing how digital payments are convenient, it is essential to understand the term. Today, digital payment stands for various purposes revolving around payments. In the article below, there will be an elaborate discussion on what is digital payment. There will be an elucidation on the objectives of digital payments. Further, there will be a detailed understanding of how digital payments are convenient. Lastly, there will be a complete overview on how digital payments thrive in current scenarios. 

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What is Digital Payment?

What is Digital Payment?
What is Digital Payment?

In simplest understanding, digital payment refers to paying virtually without any physical aspect. This physical aspect includes not being present at the store for purchase or using cash. In a digital payment, all the payments take through the computers and mobiles. The digital payment system uses various encrypted technology to create a space for sending and receiving the amount. Previously, cards such as debit or crest cards were used by the people in the name of digital payments. Currently, various scanning codes, pins, apps are being used for digital payments. 

Digital payment advantages the payment process. It acts as a boon for the payer and the paying entity. With good internet connectivity, installed bank details and mobile data, people can pay. [1] This digital payment system has become a common option as it is convenient and secure. For the sellers, they do not have to worry about the cash that is safe in the locker. For the payers, they do not have to hold cash always. Similarly, digital payment methods are easy and can be clearly understood. Therefore, they become the go-to option to pay for various purposes. 

Digital payment options are another reason for the popularity of this payment method. There are various options to choose as payment methods. Also, through digital payment, we can pay for various purposes. Currently, digital payment avails for payment to merchant, recharges, bill payments, subscriptions and bank transactions. 

In a nutshell, digital payments have replaced the physical markets and the payment methods. Today, we tend to be in the comfort of our homes, buy things and pay them without being at the store. The digital payment system acts as a smart adjustment to our modern lifestyle that is completely hued with technology and modifications. 

There are certain objectives maintained when digital payment was adopted. The next section elaborates on the objectives of digital payment. 

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Objectives of Digital Payment 

Objectives of Digital Payment 
Objectives of Digital Payment 

There are certain objectives of digital payment that different types of economies are currently working upon. These objectives are as below:

  • Digital payments are aimed to shift the payment methods from physical mode to a complete virtual mode. 
  • Digital payments are aimed to be the leading space for the start and progress of the digital economy. 
  • Digital payments are aimed to bring in digital currency and replace it entirely with physical currency. 
  • Digital payments are aimed to conduct the payment process smoothly, with the use of UPI pins, cards and QR Codes. 
  • Digital payments are aimed to secure payment systems, that is, all the transactions would be secured between receiver and sender. 
  • Digital payments are aimed to record a complete transaction history that can be looked at in times of need. 
  • Digital payments are implemented so as to make sure that taxes are paid. Today, the governmental bodies keep a record of the taxes paid or unpaid through the transactions records. 

These are the objectives of digital payments. These objectives also stand as a determinant of how well and in what direction can digital payment be applicable. Due to its implementation, digital payments are convenient. The ways in which digital payments are convenient is highlighted and explained in the next section. 

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How are Digital Payments Convenient?

How are Digital Payments Convenient?
How are Digital Payments Convenient?

The entire start of digital payments have created a whole new way of visioning the payment procedures. Today, one does not need to be worrying about payments. All they can do is click and click to make the final payments. There are so many ways in which digital payments are convenient these days. These could be understood with the following pointers:

Security All Along 

With digital payment methods, the entire payment process is secured. It is secured on the basis of the ‘end to end’ principle. The consumers find digital payment secure since it provides them to pay, without carrying too much cash. Further, it also provides them with the reliability check of the entity they are paying to. Similarly, for the sellers or marketers, digital payment directly credits the amount to their account and they do not need to hold it physically. Further, it provides them with the details of the paying entity. 

All Easy to Use

Digital payment is synonymous to convenient payments. The entire concept of digital payment thrives today, for its provision of convenience. With this payment method, you can make payment from anywhere, be it your home or office. A person does not require to be physically present at a shop or a hospital to make the payments. They can sit in the premises of their homes and pay. Further, the payments are not only restricted to shops. With digital payment, you can pay your bills, and other expenses too. 

No Wallets in the Pockets

With digital payment on the go, you do not need to keep a leather wallet with you all the time. With the availing of digital payment methods, individuals can create their own digital wallets. The best part about the digital wallets is that it is the same as the one we used previously. You can save amounts, withdraw and use it in times of payments. Further, these digital wallets are less likely to be stolen unlike those that might vanish due to thefts. You can secure your digital wallets by setting up the pin. This secret pin would only limit your understanding, hence, you have to worry less about your digital wallets getting stolen!

Digital Discounts and Offers

With digital payment, there are various offers and discounts made available. If you frequently pay through the digital payment platforms, you can avail to various offers and discounts. This also includes cashbacks, rewards and scratch cars. All these bounties can be availed by you on your next purchase at the particular digital payment platforms.

Various Payment Options Availability 

One amongst the digital payment advantages is the wide range of options available for paying. Digital payment is not just restricted to debit cards or credit cards. The payments can be made with QR codes, Pins set in banking apps, or various mobile banking options. This is especially helpful when your preferred option does not work out. In case of such discrepancies, you can always try out the other options and complete your payment successfully. 

Checking Account Balance In A Few Steps

Remember the old days of standing in a queue in front of the bank to check our balance? Well those days are gone with the advent of digital payments. With digital payment methods, all you have to do is open the app, enter the pin and check your balance. In addition to that, with digital payments one can look into their transaction history. This feature is not available in a physical payment mode. 

Transactions Are Smooth

With digital payments, transactions become easier and smooth. All you need is good connectivity, the payer’s id, your bank details and the transaction becomes successful. The smoothness of transactions also ensures that digital payment is beneficial to the senior citizens too. Further, the transactions made are recorded and can be checked by us, in order to keep a track of our account balance. 

These are some of the pointers that emphasise the notion of how digital payments are convenient. The entire processes built in the digital payment system, aim to provide convenience, security and adaption to modem lifestyle. However, this is only one side of the story. There might be a few discrepancies that would obstruct digital payments to be inconvenient. These fall outs are discussed in the next section. 

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What Might Cause Digital Payments to be Inconvenient?

While digital payments are said to be the most simple pattern of making any payments. There are certain aspects that might obstruct this quality. Digital payments might endanger personal information, thus breaking the notion that it is the secure method to pay. There might be instances where the personal details such as name, phone number could go out to the third party. In a worse case scenario, the entire account details of a user might be visible publicly. This could lead to scams or threaten the advent of cyber crimes. 

Another reason why digital payments are not convenient is the lack of knowledge about it. Most of the rural population or the illiterate population might be unaware about using digital payments. The steps to make the payments or use the mobile banking apps might be hard for some people to understand. This might either cause an inconvenience or completely make the digital payment methods irrelevant to them. 

Digital payments might lead to unfinished or sudden shut down of the transaction processes. There might be unfinished or processing transactions that would lead to delay in the entire transaction. The main cause for such an issue is the lagging of the servers. This might create an anxious state amongst the users as they are unknown to whether the amount has reached or not. 

The basic requirements for any digital payment methods are the accounts and internet connectivity. If an individual has no accounts linked or made on the digital payment apps, there is no actual purpose for the use of digital payments. Further, the strong connection to Wifi or mobile data is essential for making the transactions happen through the digital mode. 

Parting Note

In the above article, there is a complete elucidation on what is digital payment. In simplest understanding, digital payment refers to paying virtually without any physical aspect. This physical aspect includes not being present at the store for purchase or using cash. In a digital payment, all the payments take through the computers and mobiles.

Further, there is discussion on the objectives of digital payments. The objectives include the need for virtual payment portal, digital economic progress and absence of physical cash. It also includes the aim to create a platform to pay from anywhere and provide digital wallets to the users. 

There is a complete elucidation on the reasons why digital payments are convenient. These are: 

  • Security All Along 
  • All Easy to Use
  • No Wallets in the Pockets
  • Digital Discounts and Offers
  • Various Payment Options Availability 
  • Checking Account Balance In A Few Steps

Lastly there is a complete take on how digital payments can sometimes be interrupted and cut short of being convenient. There might be issues regarding the transaction completion, user friendliness and lack of resources. 

Commonly Asked FAQs

  1. What do you mean by digital payments?

In simplest understanding, digital payment refers to paying virtually without any physical aspect. This physical aspect includes not being present at the store for purchase or using cash. In a digital payment, all the payments take through the computers and mobiles. The digital payment system uses various encrypted technology to create a space for sending and receiving the amount.

  1. How digital payments are convenient?

Digital payments are convenient because: 

  • Security All Along 
  • All Easy to Use
  • No Wallets in the Pockets
  • Digital Discounts and Offers
  • Various Payment Options Availability 
  • Checking Account Balance In A Few Steps
  1. What are the issues that might arise in digital payments?

The issues that might arise in digital payments are:

  • Lack of knowledge to use
  • Transactions might be incomplete
  • Breach of security
  • Lack of resources to operate digital payments. 

References

[1] Gießmann, S. (2018). Money, credit, and digital payment 1971/2014: From the credit card to Apple pay. Administration & Society, 50(9), 1259-1279.

[2] How digital payment will become ever more secure and convenient

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