There has been a dramatic change in how people engage in trading activities and buy and sell products over the past decade. Online shopping and e-commerce have greatly shaped the way people buy stuff and make payments in return. The transactions are not confined to a certain region but e-commerce has paved the way for smooth international transactions, thus providing more opportunities to both buyers and sellers. The rise in online payment exchange has led to new and innovative ways of making monetary transactions. Most of these payment methods require a reliable internet plan such as any of Spectrum One plans. If the internet connection loses signal, the transaction is left incomplete.
Let’s discuss some of the modern payment methods in the article below.
The introduction of e-wallets has reduced the need of carrying cash physically. It is a secure method that is widely used by people to avoid unfortunate incidents like theft. They can be used at any place and time to buy goods and services.
E-wallets require people to store their credit card information or bank details in secure e-wallet software. This information can be then accessed online while making a payment at a store or online simply by making a few clicks.
Google Pay and PayPal are some of the most popular e-wallets.
Cryptocurrencies have gained much popularity in the past few years. The most popular cryptocurrencies are Ethereum and Bitcoin. Cryptocurrencies are now making their way into mainstream trading with some of the renowned brands from various fields such as Starbucks, AT&T, and Microsoft accepting them for payment.
One of the unique features of cryptocurrencies is that it is not backed by any financial or government institution, instead their value is determined by free-floating in the market. Cryptocurrencies are highly secure with strong encryption bonds. Their transactions are recorded on a blockchain making it impossible for anyone to break through and alter the records.
Though the future of crypto is bright yet their use in current market systems is limited. Many merchants and companies don’t accept cryptocurrency as it is still a new concept and will take time to merge into or replace the traditional currency. The major drawback of crypto is its highly fluctuating value over a short span of time.
Direct banking or bank-to-bank transfer is another easy way of transferring money when huge amounts are involved. It can also be used for international transactions. It easily transfers the requested amount from the sender’s bank account to the recipient’s account.
Bank transfers are a reliable method of payment that ensure secure transactions, but the process can take up to 3 working days which makes it a slow process as compared to other available options.
Card payments are the most popularly used method all over the world. Almost all merchants and stores, big and small, accept cards. Credit cards and debit cards can both be used online and in-store. Their transactions are recorded and can be traced back.
Cards are a convenient and secure method of payment. They can be used online by simply entering the card details whereas they can be used in-store by merely swiping them on the machine without having to add any extra bit of information. In case of theft, the cards can easily be blocked by making a phone call to the relevant bank.
Cards are vulnerable to cybercrime and can be hacked. Therefore, one must be careful while entering card details and must investigate the authenticity of the place of the transaction before making a payment.
Mobile payment is the method of buying stuff and adding the bill to the monthly bill of mobile usage. It is not a very popular method of payment and is used in only a few countries such as Sweden and Finland.
Security of Online Payments
As discussed above there is a variety of ways available to users to make transactions, each having its benefits and drawbacks. Credit cards are extremely convenient and widely accepted worldwide while cryptocurrencies are highly secure. Bank transfers are useful when huge amounts are involved or while making international transactions. and E-wallets provide ease of transactions while buying goods and services on a daily basis.
Each method discussed is safe as long as the business is done with established and trusted entities. Users must evaluate payment options while making a transaction keeping in view the amount and the nature of the product. Users should make a thorough background check of the company involved before making a transaction and choose the most secure and convenient payment method available.