Lately there has been a huge developments in different technologies regarding money transactions. Payments with cell phone apps have been gaining drastic porpularity in recent years which is mostly driven by affordable smartphones and mobile internet. Although there are numerous advantage of this new technology, there are few disadvantages that we should also consider regarding the use of this technology.
It has become extremely convenient for people to make day to day shopping by using their smartphone app. India recently introduced UPI payment in the country where one can simply scan a QR code with their smarphone and pay to the retailer for their purchases. Paying with cash requires either to have exact amount or the retailer have to count the cash amount and return the change, which takes sometime. Even though it might not be a problem for buisness where it usally not so crowded, it is quite significant for others where its more busy. It saves time for the customer as well as the buisness owner to deal with digital payment with mobile app, where the customer can pay with the exact amount.
Although there are many advantages of using cellphone based apps for payments, there are some drawback we can’t ignore. The ease of access to money digitally also fuelling frauds. Scammers can nowdays develop their own app to hack someon else’s mobile phone and make unauthorised transactions. Which subsequently leads to rise of further crimes in the city.
In my opinion although the disadvantage is not negligble, the advantage of using app based payment outweights the downside of it. Furthermore, there have been a lot of improvents in minimising the fradulent transactions. People can choose to have a upper limit on the the transaction per day which helps minimise the loss on an event of a fradulant transaction. Also users can now choose to have a two-step verification to further solidify the security of their banking apps.
Cell phone app based payments have becoming more and more common nowadays. The ease of use has added dramatic change in terms of how people use their money for day to day lives. There have been some conerns about the security and increase in the crime rates in regards to this new payment system which needs to be tackled. More secure technolgies are being developed to counteract these problems in addition to increase the awareness to the overall problem. Overall this addition of mobile payment system is boosting economy.