Band 6+: In many countries, paying for things using mobile phone (cellphone) apps is becoming increasingly common. Does this development have more advantages or disadvantages? Give reasons for your answer and include any relevant examples from your own knowledge or experience.

The use of cashless mode of payment is significantly increasing. There are several modes of payment that have been introduced such as credit cards, debit cards, Net Banking, and the most recent development of Mobile phone apps which make it easier for the public to transfer money. While there are advantages to this technological progress, the drawbacks of using cellphone apps are evident and cannot be overlooked.

To begin with, Mobile phone apps like “Google pay” and “Paytm” are third party apps which can be connected to consumer’s bank through an UPI ID, following which money can be transferred directly to another source using a 4-digit security pin. These applications are easy to install and use, and facilitate quick mode of payment without worrying about the problem of spare change. Additionally, many banks are developing their own apps to allow the consumer to directly enable a bank transfer which is considered a safer alternative as compared to third party apps. Mobile applications allow the customer to access check other bank related information as well, such as bank balance and transaction history which allows the user to track their expenses.

Although such mobile banking apps have been increasingly used by people across the world, there are disadvantages behind their use which must also be considered before installing. Despite having security passwords, many people fall prey to scams and end up losing huge amounts of money. This is evident among senior citizens who face difficulties while using the applications and are unaware about the risks involved. Another major downside of having these apps are that people often become over dependant on them and avoid carrying cash when they step outside. This can be a major problem since many sellers, particularly in rural areas only accept cash. Moreover, their use also requires a strong internet access.

Hence, although many people across the world prefer using mobile phone apps to make payments, in my opinion the disadvantages outweigh the advantages and so, people must be cautious while using them.