Digital Payments | Types and Benefits of Digital payments
Digital payments are fast taken over other means of payments. Presently, most people prefer to do business online and when making a transaction online, making use of digital payment systems seems to be easier and convenient. Hence, if others use digital marketing to grow and succeed in business, digital payment is sure to succeed.
For many people, it proves to be more protective in making transactions on websites. Technology is fast taken over everything thing we do. Starting from making purposes to delivery is now influenced by technology.
Business owners and clients are really interested in faster, safer and convenient payment methods. All of these is making cash and credit cards fast becoming out of use.
The future of payments options is fast moving to mobile and social payment options that gives instant gratification.
What is Digital Payments?
Digital payments are making payment using digital instruments. Here, it means that the payer and the Payee must use electronic modes to send and receive money. In this kind of payment, hard cash isn’t used. It requires a payer to transfer money to the payee’s account via net banking application.
Before you embark on any digital payment method, you must be sure that it’s accessible in that location or country.
There’re several online payment options that you can use for your payments. But in this article, I’ll be considering some of the trending payment methods that people prefer to use now:
Mobile In-store payments and Apps
Most people now use Mobile POS options for their payments. Using mobile devices is now on the increase and there’re facts to prove it.
The facts show that about 90% of millennials now own are in close contact with their Smartphones all day.
A recent study shows that about 56 percent of users make more than $4 billion purchases using their mobile phones.
Rise in In-store Payment apps
There’s really rise in in-store payment apps such as PayPal Beacon and Apple’s iBeacon. Users have the opportunity to pay for items in the physical store through apps on their Smartphones.
Digital Payments are now made using digital currencies like Bitcoin. Most people now prefer to do transactions using digital currencies. During this millennial era, the digital currency will take over some payment methods. Thanks to the innovation, freedom, and convenience this kind of payment offers.
You may have your reasons to argue about this, but the fact is that because of the borderless nature of this payment, it’s vital. In addition, this payment isn’t regulated by the government yet.
E-wallet and Mobile Payment apps
E-Wallet and Mobile payment apps allow users to transfer money and purchase goods. With the apps, you can pay bills and carry out other financial transactions.
Social Media Payment
Presently, Social media networks have grown to include payment solutions such as peer-to-peer. With this, you can transfer money from one user to the next person. Also, you can pay directly within the network.
Many people especially youths turns to social media whenever they want to make purchases. Connecting to companies via social media is now easier and payments using digital payments seem to be easier and faster.
Being a smart marketer means that you must be good at networking and most companies have better social media. Social media users can utilize the action buttons some social media apps such as Pinterest to add items on their Amazon Wishlist. From there, direct payment can take place from the Pinterest site.
Benefits of Digital Payments
I have already said that digital payments involve those payments made through digital channels. That means that what used to be cash operation is now cashless. Below are the benefits of Digital payments:
- It offers users convenience and easy accessibility. What it means is that users don’t have to use cash or ATM. Even your presence isn’t needed to make payments.
- Provides lower risk-There’re more security in using digital payments than the cash payment due to the secure gateways that’s very difficult to manipulate.
- Records are quite easy to keep their payment details as saved in merchant-specific databases. It gives the merchants and clients access to the payment details. Hence, resolving payment issues are fast and traceable.