What are the advantages of digital payments?
The preference for digital payments won't stop increasing, according to forecasts from Statista. In 2017 there were 2,454billion users globally and in 2022 this reached 4,160billion users. It is estimated that by 2027 they will be used by over 5,480billion people, which will allow for increased financial inclusion.
Such growth is partly due to the benefits that digital payments can offer. Security is highlighted as the first one. Digital payments reduce the risk of theft and counterfeit money. These are two significant problems linked to cash, which is reduced by its digital counterpart. Online, financial transactions such as payments can be easily identified. This is also an advantage for companies because it promotes transparency in financial transactions.
In relation to monitoring payments, thanks to digital banking apps, you have real-time and detailed control of your spending. This is particularly useful when creating budgets to control your personal finances and to help avoid over-indebtedness, which will damage your financial health.
It's also quicker and easier. As is the case with many instant money transfer services - e.g. when you want to split the bill for a dinner between two friends, all you need is their phone number. By following a few simple steps you can transfer funds to others via your mobile phone app. Finally, it reduces the costs associated with manufacturing money. Cash uses natural resources, something that has a negative impact on the environment.
Without a doubt, the payment sector is constantly innovating to offer users increasingly simple and instant payment methods. However, this doesn't just have an impact on an individual level, it is something that allows the social gap to be reduced via financial inclusion. It can boost the banking of the unbanked, allowing them to manage their spending and saving, as well as giving access to microcredit.
