Today, many people use the internet and smartphones to transfer money to friends, family, and businesses. Is this a positive or negative development?
Favorable? Why (not what is happening)
There is no need to carry cash anymore, safety from pickpockets, or money being lost
Convenience as there is no need to wait in queues of banks of ATMs, or look for one around
* There is no need to visit brokers for out of city or international remittances
Speed of the transactions has increased manifolds - the moment transfer money button is pressed, the amount is remitted to the receiver anywhere in the world
Negative/ detrimental effects?
People sometimes remit more than required or to wrong accounts and it is hard to get a refund
It is hard to keep of track of spendings
In case the internet is not working properly, people can become helpless
If device is lost, it is hard to retrieve details, and people are left high and dry and they must follow long tedious procedure of restoring their accounts
Hackers defraud people easily
Payment getting stuck in gateways take a long time to be reverted back
Exorbitant charges are an additional burden
* economic perspective - loss of employment
Contemporary times are witnessing an increasing use of the internet and smartphone based payment applications. This phenomenon is considered favorable by many, but it also has some drawbacks.
I will discuss these perspectives in the following paragraphs.
Some people are happy due to the advent of the internet and smartphone based payment facilities as they say this has brought numerous benefits. However, others are skeptical and feel that it is having numerous pitfalls.
X x x x x x x x x x x
Contemporary times are witnessing an increasing use of the internet and smartphone based payment applications. This phenomenon is considered favorable by many, but it also has some drawbacks.
To embark upon discussion, the use of these apps has allowed people to transact quickly with anyone and anywhere, regardless of their own location. One can now purchase online without needing to arrange for cash to make purchases, and going to the markets to buy something. It has been reported by several survey organizations that millions of buyers are now ordering goods either online, or even from the brick and mortar shops to buy for their needs and remit the due amount without physically being present at the spot.
Similarly, it is extremely convenient for one to transfer money to their loved ones from anywhere in the world to any location without requiring to go to access financial remittance services providers like Union Money Transfer - that used to cost a lot of time. This has helped especially those needing money to overcome contingencies. As per the International Bankers Association, this facility has aided millions of those living abroad in transmitting money, without delay, to the loved ones in their home countries.
Having said that, even though sporadic, there have been reports of money getting stuck in gateways and taking weeks to be retrieved, the most prominent of the drawbacks of such an arrangement. Similarly, some have also complained paying more than required, or to a wrong recipient, making recovery almost next to impossible in many cases.
In hindsight, despite some detrimental effects, this new introduction has come in as a boon for the millions who are experiencing substantial convenience and speed. Thus, this is favorable evolution. I feel the failings can be overcome by adopting prudent measures.
