The Rise of Digital Payment Systems



Any kind of financial transaction conducted through a digital channel is referred to as a digital payment. These consist of contactless bank payments, digital payment apps ( Apple Pay/ Google Pay), and bank or wire transfers. 

Digital payments have increased in recent years for many reasons but we will start with the obvious one, Covid-19! During the critical years of the pandemic cash was looked upon as dirty or contaminated. Governments and businesses made it clear that they preferred consumers to use a contactless method of payment while in-store or even better if you could get the products online and stay at home they recommended the use of online systems for clothes, grocery, and essential needs. This increased the amount of global digital transactions and caused people who were perhaps not familiar with this form of payment to make the change over from cash. 




The use of digital payments was already on the up prior to the pandemic also. People have been using e-commerce platforms for years. Clothing, footwear, and home furnishings are likely the most commonly purchased goods from the internet in today's world with popular brands like Boohoo.com, ASOS and Temu operating solely online and consumers needing to use digital payment systems to make the purchase. 

Digital apps including Revolut, Cash App, and Venmo have revolutionized the digital financial sector. By using the apps customers can send money / Store money and pay for things online and in-store. Studies suggest that users of the app feel my comfortable using these services online and when sending money to friends as you are given a unique username and it saves the need to give over bank details which can be seen as highly personal information. With a rise in cyber crime, customers feel less vulnerable making payments online through apps like Revolut instead of using their personal banking app. 




Mobile phones are now the most popular form of payment within Europe. Apps like apple pay and Google pay allow cards to be stored in online virtual wallets which eliminates the need to users to carry physical cards. This is a much safer form of payment as the transaction is only authorized through a pin code, finger print or facial ID.  

Digital payments will continue to benefit our future and become more artificially intelligent. It is unlikely the world will ever go backwards and with this rise , in my opinion, cash as currency will cease to exist within the next 20 years.






Links for further reading : 


  1. What Is A Digital Payment and How Does It Work? – Forbes Advisor INDIA
  2. Understanding Online Payments (youtube.com)
  3. Digital Payments Statistics in 2024 (Latest U.S. & Global Data) | Ecommerce Tips



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