Digital payments are here to change everything. However, there’s a few things you need to know before you can get fully involved with this method. Let’s find out more about this.
Digital payments vs. traditional payments
Global digital payments have caused a real revolution. Currently, thousands of users across the globe can have an electronic wallet. This allows them to receive and send money to other parts of the world. They can even store different currencies, according to their favorite currencies.
Basically, a digital wallet is a completely virtual wallet. Payments are processed in the wallet while an agency oversees the security of each transaction. Basically, it’s the current equivalent of the physical wallet where you keep the banknotes for your country.
However, there are several differences between a digital wallet and a physical wallet. Mainly, physical money is only useful to pay in hand.
That means you can’t process it and send it somewhere else immediately. While you can enclose it in an envelope, the recipient will only receive it after a predetermined amount of time. Obviously, this will vary depending on where you send it.
In contrast, instantaneity is one of the most well-known features of digital payments. You won’t even have to go anywhere to make a transfer. In other words, you can do it from your smartphone or computer. And you can get to more places, since you don’t need the physical proximity required by cash.
On the other hand, you should bear in mind that all digital payments will be linked to an account in your name, unlike cash payments. This helps prevent money laundering.
There isn’t a way to record actual payments to collect taxes either. However, with digital payments, your name will always be involved. Therefore, if you invoice, you should consider that any payment made to you must be justified.
Digital Payment Switching in a Pandemic
Particularly during the pandemic, more and more digital payment companies emerged to take advantage of the demand. This was due to the need to buy at a distance and to healthcare measures.
Remember that banknotes may contain thousands of germs as they pass from hand to hand. For this reason, it was seen as a danger to health.
At the same time, more and more people decided to stay at home to protect their health and avoid contact with others. Therefore, they needed a payment mechanism which didn’t require being present in person. Some mechanisms appeared which guaranteed the effectiveness and security of transactions.
What are examples of online payments providers? You must know about some international payment platforms.
- One of the most important is PayPal, which guarantees international security. For example, anyone in Latin America can receive money from anywhere in the world.
- PayRetailers is another useful payment gateway. It serves to operate between members of the region, with absolute security and speed in operations.