Online payments have created great ease and efficiency in financial transactions. It allows us to make payments online through cards, our phones, and the internet, no matter where we are. However, while creating great convenience, it also comes with risks like internet fraud.
Talking to the experts, we have compiled all the pros and cons that come with online payments.
The Internet is an integral part of life for a large number of people, companies, and institutions. With its help, you can not only communicate quickly, have easy access to information, but also simplify actions that previously were associated with certain inconveniences; for example, today, you do not need to stand in line to pay the utility bill, you can do it without leaving home quickly and easily.
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The number of people interested in e-shopping is constantly growing. This form of transaction is gaining new supporters - often even those who are skeptical about online security or the quality of products available at online stores. Online payments make online shopping very easy, and online accounts offered by banks are very convenient and popular because of the low cost of service.
The buyer is able to choose the payment method that is most convenient for them, as merchants usually provide several options for this transaction. Online payments are not only fast but also convenient. We don't have to leave the house for the seller to receive payment for a product or service from us in a short period of time.
We can also have peace of mind about the safety of our funds - by using well-known payment systems, we definitely minimize the risk of transferring funds to a fraudster. In addition, online payments are constantly developing and improving.
There are some limitations to online transfers. These are mainly: Lack of access to an online bank account for some internet users; For the merchant, online payments often involve having to pay a certain commission; some Internet users do not trust these forms of payment, fearing for the safety of their finances; there are times when the confirmation of the transaction is extended in time.
Kidyba Iryna, Financial Manager at monfex
As eCommerce continues to become more popular than ever, it’s never been more important for businesses to offer online payment options for their products and services. Online payments come with numerous benefits.
Firstly, it allows merchants to open up their customer base, as their geographical location no longer limits them. This means they’re able to reach more customers resulting in more sales. From a marketing perspective, there are also more marketing channels available to promote your business.
By offering your products and services online and accepting payments online, you can have websites, blogs, and social media to showcase your products and services with full online payment options. Finally, many impulse buyers may be less likely to buy your products if they have to visit an in-store location.
Some disadvantages come with offering online payments. The riskiest, in my opinion, is the security concerns. Hackers and fraud have undoubtedly increased since businesses introduced online payments. Luckily, there has been some progress in limiting these online fraud attacks. Advanced security ID checks using biometrics and facial recognition are helping to make paying for products and services online safer and hassle-free.
Charlie Wright, Director of Operations at Epos Now
Online payments are convenient for clients and customers alike! Ever gone on a quick coffee run with a friend only to realize you don’t have your wallet on you? Me too! At times like that, I have the convenience of online payments to be able to transfer my friend the money instantly! The same convenience applies to customers or clients of a business. With just a few taps on your phone, you’re instantly able to transfer sums of money all in the comfort of your bedroom.
Online payments might be a small market at the moment. The older generation is generally wary of online payments due to security concerns. Thus, your clientele or customers may be limited to younger or tech-savvy individuals if you choose to solely rely on online payments. Online payments are susceptible to security concerns such as hacking. To avoid this, the business will have to invest heavily to ensure its systems remain encrypted and secure. Thus, this is an extra cost that not many businesses want to foot the bill for.
David Northup, CEO InShapeMD
This is one of the greatest pros of online payment. Anyone who has a laptop or a mobile phone can perform an online transaction. They are straightforward to use, and you do not need any kind of training to understand them.
Online transactions are the fastest way to transfer money. You don't need to visit a bank or wait in line to make your payment. Cash is transferred within seconds between accounts.
Though the online payment methods are made secure, there are still chances of hacking. Usually, fraudsters try to steal people's passwords and social security numbers. This is one of the reasons why some people avoid online payments.
Sometimes online payments become difficult to process due to technical issues. The issue may be occurring on the bankside, like the server may be down, or there could be an internet issue on your side. These technical problems can delay the transactions.
Haseeb Awan, CEO of America's Most Secure Mobile Service, EFANI. Previously he built one of the largest Bitcoin ATM networks. He is also a Y-Combinator Alumni.
Florence Carpenter is passionate about ensuring that the process of opening merchant accounts is as straightforward as possible. She graduated from the University of Michigan with a bachelor’s degree in Marketing.
