Why Digital Transfer and E Wallets
Mobile apps are new cash wallets. With latest gadgets and development of information technology, smart phones became the cash boxes or extension counter of bank account.
These apps are software programs that links personal information and financial information of the user. It allows to exchange money or fund digitally for making transactions. It can be used for buying products or services.
Benefits include non-carrying physical cash that has mass. Easy to use. With latest technology of block chain fund transfer and book keeping system Safety and Security had improved to make any transaction proof. Comparison of Traditional Fund Transfer and Digital Cash / Mobile Wallets / E-wallets.
| Traditional Cash and Bank System | Digital Fund Transfer System |
| It has mass (Coin, Cash, Cheque, Draft etc.) has physical shape, weight and shape | No Weight or Shape irrespective of amount transacted |
| Need to touch to hand over | No contact payment and receipt is possible |
| Geographical boundaries are always a problem to solve | There is no boundary as far as eligibility of transferring is there |
| Counting is a time-consuming process | No Considerable time required. Takes only fraction of a second at times |
| Carrying quantity requires physical strain | No physical strain involved. Hardest thing is an ATM Card |
| Chances of losing while carrying due to open mouth or torn bag, leakage etc | No chance of losing when in move |
| Deformation chances are high due to external calamities like water, fire, falling | No such risks. Especially with introduction of cloud storage system |
| Account opening, Transferring, Closing are tedious jobs | Comparatively easier and lesser time taking process |
Why Digital Transfer and E Wallets
| Risk of stealing is more | Near to Zero chances |
| Carrying charges are more due to risk factor | Minimal Processing or transfer charges |
| Risk of counterfeit (duplicate) is there | No possibility of duplicate in block chain system |
| Loss during Exchange is higher | Lesser exchange losses |
| Limited storage points due to quantum | Any Smartphone or gadget can carry it |
| Less number of service providers | Many options according to usage and comfort |
| Only Banks and Financial Institutions issues and controls | Other than Banks and Financial Institutions, reputed software giants and companies issues and controls |
| Only Physical currency or instruments can handle | Digital form of physical funds as well as Crypto Currencies can transact |
| Only experts can handle properly | Anyone with smartphone can use it easily. |
| Transactions happen Mainly during official hours only | No Time frame is an issue. |
| Geographical constrain is there | No boundary is applicable. |
| At times, Physical appearance of beneficiary required for receiving | Can transact very quickly, without personal appearance. |
| Transparency issues – ownership of cash can be denied | Without a registered user details, transfer is not possible, nor ownership can deny |
Important Digital Payment Systems
Google Pay UAE
It is a digital payment method by Google – the Technological Giant. It is also termed as G Pay. And it is a tap to pay method. Even a mobile phone or tab can handle it.
The functioning of Google pay is through N F C (Near Field Communication). With a tap, funds can transfer. Instead of P I N Code controlled physical card, QR code or N F C controlled devices makes lives easy for cash counter people.
It has a double authentication process to make transaction(s).
Features Of WhatsApp Pay
This is a digital payment system introduced by Facebook managed WhatsApp. Being a technology giant, the company has better understanding and managing ability of data and security of transactions.
In the case of WhatsApp pay, people can send money to people in their contact list only. The system will activate an I D called U P I then. This I D is used for sending money.
For sending money to people who are not in their contact list, they can take help of a Q R Code to transfer fund. To send money, there is a short cut menu of WhatsApp with the option ‘Payment’. When tapping the option, people can send money. It is working with above said Unified Payment Interface or UPI that does not require a bank account to keep or take money. This will not ask from receiver of any Bank Account numbers, I B A N, I F S C etc.
PayPal Digital
It is an American Company with branches and franchisees worldwide. It is owned by PayPal Holdings, Inc. The company is into the business of online payments. It give services of transferring money online. PayPal plays an important role in converting cheque and cash method to online or digital format in world economy today.
Main service area of the company is money exchanges of individuals’ money worldwide. The method has a wide acceptance by millions of people worldwide. The reason is its speed, dependability and efficacy.
Other than individuals, corporates and commercial orgnisations, shops, finance houses, banks are also users of it. PayPal takes a small fee from users for the services provided. Each transaction will have separate service fee.
Companies as well as individuals can do fund transfers online between individuals and companies and individuals. Any kind of transactions are possible through it. Let it be a donation, school fee, online purchase or commercial transaction. Another important feature is multi currency option – this means sender can use one currency while sending and the receiver has facility to get in different currency of the location or so. This feature is available in PayPal accounts.
Must Know !!
Why Digital Transfer and E Wallets