5 Advantages of Digital Payments

With more experts believing a cashless future is in sight, the digital payments market continues to grow rapidly. In fact, the worldwide digital payments segment is expected to reach a value of $9.47 trillion (£7.67 trillion) by 2023. This projection results from the number of people, businesses, and establishments using digital payments. It seems like an exaggeration, but digital payments are genuinely taking over as a leading payment option—and for good reason. Below are a few advantages they offer that are convincing people to make the switch to cashless today.

It increases payment security

Financial scams are, unfortunately, very common. Some of the most basic credit card scams include phone-based phishing, fraudulent ATM acts, and fake money transfers. Luckily, digital payments are becoming safer through multiple security checkpoints, preventing criminals from accessing and stealing your money.

One such example is tokenisation, which is typically used in the safekeeping of debit and credit cards. It works by transforming sensitive data—such as your card number—into a randomised token value. Only authorised personnel like you or a bank employee can decipher this, keeping your money and financial data extremely secure. Even if a criminal gets access to it, they won’t get your card number because they don’t have the encryption key. This way, you feel safer about making digital transactions.

It enables seamless global transfers

Global transactions are popular today due to overseas shopping, international business partnerships, and the like. However, manual transactions—such as bank deposits—can take days, resulting in delayed business processes, shipments, and similar procedures. Digital payments solve this problem by making global transfers quicker and more seamless.

One digital payment method gaining popularity for this very reason is cryptocurrency. Bitcoin is one cryptocurrency that continues to trend due to the peer-to-peer technology it uses for instant digital payments, completing transactions in seconds. Contactless payments, like digital wallets, also offer quick global transfers. PayPal, one of the most-used digital wallets, allows instant money transfers from one account to another. This way, international payments are processed quickly and without trouble.

It provides convenience

No one wants to look for an ATM, wait for a bank to open, or always carry cash. As such, one digital payment trend to watch is how real-time transactions are becoming the norm—all thanks to digital payments.

Real-time payments grew 39% in 2021 due to the sheer volume of people utilising them. Most of these people are customers expecting and demanding to make transactions anytime they wish. Digital payment methods like credit card payments and online banking make this possible. With digital payments, transactions can be made anywhere and anytime.

It improves sales

As mentioned above, many people are using digital payments now—including consumers. Businesses not accepting digital payments will lose customers who prefer this method.

Digital payments increase sales by attracting consumers who want to pay in this manner. It also allows online customers to purchase goods from a business, adding to in-store sales. Overall, it helps companies increase sales by drawing in and meeting the payment preferences of customers who enjoy the comfort of digital transactions.

It guarantees payment completion

A significant advantage of digital payments is instant confirmation or completion. Users immediately get proof that money has been sent or received. For example, digital wallets notify users when money has been transferred into their accounts. Meanwhile, cryptocurrency payments are confirmed when they’re added to another block on the blockchain—which is irreversible. Compared to non-digital payments, like receiving checks people can forget to pay, digital payments provide better reassurance to users because of the real-time completion of transactions.

Digital payments are becoming more popular because of their benefits. Switch to digital payments today to experience its advantages, including increased security, convenience, and instant payment confirmation.

Exclusively written for spoko.app by Jacqueline Bridget