Digital payment is on its way to becoming the new market standard very soon. Today, it is already used for various financial transactions, connecting companies, and customers. Through digital means, consumers can pay off consumer bills and businesses can receive amounts for gym plans, streaming subscriptions, and course fees.
Digital payment is every transaction between companies and customers that is being carried out 100% online, through the exchange of data. The main feature is that there are no physical elements involved, such as a card that passes through the machine or even cash.
The secret behind the digital wallet is tokenization technology, which transforms the registered card data into a token (secret code) to authorize the transaction.
One of the main advantages of digital payment is the speed of the transaction, which most of the time is completed in seconds. Exceptions are transactions denied due to suspected fraud, lack of balance, lack of limit, among other problems that require retrying of payment with cards. Even so, it is much faster to pay via computer or mobile device and rely solely on the internet to complete the purchase.Â
Also, there is greater convenience for customers, paying online is a way to save time and not have to travel to buy something, pay a monthly fee or pay a bill. In addition, it is possible to pay in installments with your credit card and choose between different means of payment.Â
Cost reduction is another plus point for companies that offer digital payments. With a payment gateway, for example, it is possible to negotiate rates directly with acquirers to obtain better conditions. Not to mention that it is not necessary to spend money on buying and renting machines. In addition, payment solutions allow for the automation of processes and reduce expenses with working hours. For the consumer, the costs are fairly the same, but it is possible to save by shopping at a distance and avoiding unnecessary displacements.Â
Now that we know a bit about how online banking works, do you think that your Cash App can replace your bank in its entirety?
No, it can not
Have you tried payment for your mortgage or buying a car with your Cash App? It just would not look right?
Right now, there are too many things one can not do with one’s Cash App. This is one of the main reasons why online financial institutions would not be replacing the bank any time soon. There are so many things that you or the Feds can not do through your cash apps at the moment.
