There has never been a more fertile period for innovation and game-changing inventions than the last forty years, thanks to the widespread availability of the Internet, personal computers, and mobile phones.
Online financial services and e-commerce have flourished alongside the increase in popularity of smartphone payment systems.
In 2019, here are some figures that illustrate the revolutionary potential of online banking:
- Around the globe, 4.4% of the population uses the web.
- Over 60% of the world’s 4.4 billion worldwide Internet users shop online at least once a month.
There are many possibilities and openings for financial companies to develop and grow in this field. However, it has the potential to become a treasure trove for thieves.
This is because technological advances occur at such a rapid rate that digital trends can only be followed for a couple of years before they become obsolete.
This article will explore the rising popularity of online payment methods and the barriers that prevent certain consumers from ditching their wallets in favour of a digital wallet. Finally, we ask whether or not a cashless society is feasible.
How Common Are Internet Transactions Becoming
Payment Over The Internet: What It Means
The success of online payment and the factors that have contributed to its rise to prominence require, first, that the phrase “online payment” be defined.
Online payments are defined by Kabir, Saidin, and Ahmin (2015) as “exchanging money between two or more parties using electronic devices, such as computers and mobile devices, instead of cash or checks.”
Bezhovski (2016) provided further explanation of the many forms of electronic payment by naming some common ones, such as:
- Online-managed bank cards, including debit and credit card accounts,
- In-App Purchases
What Advantages Does It Have Over More Conventional Forms Of Payment?
Due to the widespread availability of smartphones and related mobile applications, many once-common things have become obsolete.
Cash and checks are being phased out in favor of electronic payment solutions for purchases and bills.
There are a number of causes for this change to affect so many people all across the world, according to business pally.
Almost everyone on the planet now has a smartphone, which they may use to perform any of the aforementioned actions without having to physically possess any of the aforementioned items individually.
The same applies to online banking software. Their use enables people to:
- Examine the company’s financial records.
- Send money to someone else
- Make sure your recurring bills are paid automatically.
- When making a purchase in person, customers can just tap the reader to pay.
- Connect their bank accounts to online marketplaces like eBay, Amazon, and others to make purchases.
Fast Data Retrieval And Bill Tracking
An ideal internet banking platform for mobile phones would preserve a record of all user transactions and cash flow analyses on a monthly basis, allowing customers to know where their money has gone and plan for the future.
Therefore, there is limited space for error in financial management after a payment has been made.
Because it is in the bank, there is no physical currency that could be stolen. As a result, thieves are now more likely to target people’s cell phones rather than any other possessions they might have.
If the theft of the phone was successful, the criminals would have to avoid the following:
- Locking the device and wiping all data after several failed attempts is just one of the many ways the device verifies the user’s identification.
- Identical safeguards for app access
Users couldn’t change their passwords, quarantine the device, or contact the bank until they overcame those obstacles.
A PIN number provides added security for card users. Before that happens, though, the victim can prevent the card from being used by cancelling it or notifying the bank.