In the year 2016, the government has declared demonetization and urge to make payments digitally instead of using cash. Government pushes for less cash economy under the agenda of making India a digital India by making digital payment popular. It has been noticed that in the year 2016-17 the percent of making digital payment raise up to 55%. There are not just one or two but various advantages are linked with digital payment concept. But the question is does making payment digitally is safe and secure? Let’s find it out.
In the last one year of hard work, the government found a very good response of people in terms of making payment digitally. The smartphone is available at various prices. Data pack prices by telecom companies were reduced. And this combination helped the government to flourish their idea of making India cash free easier and flexible. Now there are some advantages and disadvantages linked to digital payment.
Making payment digitally comes up with lots of convenience and comfort. It is easy to pay anywhere and anytime digitally. This is one of the biggest advantages. Also, it gives you relief from carrying cash, plastic money or anything related. The only thing you need to have is digital id username, password, and internet.
This is the safest and convenient option for travelers. Carrying lots of cash gives goosebumps & tension every time you pick out to make payment. In case of medical emergencies, digital payments are extremely helpful. Digital payment won’t require any physical presence so one can make payments from anywhere & anytime. The benefits are enormous for people who won’t fall into a low-income category but for the rest of the people, it’s a constructive and simple plan.
Making payment digitally helps you in tracking your monthly and annual expenses. You can also easily explain your spending while filing income tax return. When you have written a record of your spending then you can make a clear check on budgeting. So, making digital payment helps in analyzing better budget planning. Controlled spending could also result in higher savings.
The recent renunciation of service tax through card payment up to Rs. 2000 is an incentive provided by the government. This is another step taken for promoting digital transaction. You can take advantage of it as it has been followed by a series of cuts and freebies. Almost every domain is offering cash back and some discount on making payment digitally. This cash back is offered on various applications like paytm, phonePe etc. You can also earn loyalty and reward benefits on existing cards also.
It’s a good technique for those who are tech freak or won’t find it hard to handle smartphones. But not everyone is tech savvy and so it’s one of the biggest disadvantages. Earlier India has low internet penetration but from last few years it has been seen that people are learning more about smartphones.
Another major risk or defined disadvantage comes in a pack of losing phones. People use to keep all confidential details in phones and so lose of it could double whammy. It can cause a problem if you are traveling to abroad or located in a small town or village as there is a lack of bank accessibility. Another highlight is that you need to keep your phone charged and proper internet connectivity. Because if your dies in between any particular transaction then also it causes a problem.
So following are the advantages and disadvantages of making payment digitally. Besides, a high penetration of the digital payment system is contingent on a fact that same amount cash won’t circulate. And that’s because people find it easy using cash and it’s hard to break this mindset.