Digital payments have improved our lifestyle over the past two decades - from improved payment trends to seamless shopping experiences. Payment has become easier than ever. In recent years, we’ve seen tremendous growth in digital payments and a considerable decline in cash transactions.
However, there are some interesting facts about digital payments that you may not know, especially if you are not in the technology field.
So, what are these fantastic facts about digital payments? Read on to find out.
10 Amazing Facts About Digital Payments
Digital payments have improved the way we pay and get paid, and we are all for the fantastic benefits they have to offer. Below are ten amazing facts about digital payments that you need to know. They include:
1. Digital Payments Fosters Business Growth
Many businesses worldwide can now receive faster with the help of digital payments. This saves time and human resources for many companies and their customers.
When it comes to supplier payments, transparency is a crucial factor. Electronic payments give both your company and your suppliers complete visibility and transparency throughout the whole payment process, enhancing the supplier relationship. This does not exclude your customers too.
Also, digital payments are much safer and more efficient than the traditional payment method. All these benefits enhance business growth.
2. Digital Payments Are Faster
Compared to other means of payment, digital payments are faster. In a world where everyone is busy, no one wants to spend time filling out a check or counting money anymore, which makes digital payments the best option.
Within a few seconds, you make payment for any goods or services with your smartphone or mobile phone without having to first stop at the bank to withdraw cash.
3. Businesses And Consumers Are Embracing Digital Payments
The world is now interconnected, many business owners and entrepreneurs are now running their businesses on the internet. A good example of this is E-commerce platforms like Amazon, Alibaba, Jumia, and Konga. Digital payments make running a business online possible.
For business owners and entrepreneurs to run their businesses online, they must embrace digital payments because it is the primary payment method available.
With the help of technology and digital payments, it becomes a lot easier for customers to make payments online for any goods or services. In fact, many people enjoy making purchases online while in their comfort zone. This happen through the help of digital payments.
Also, it becomes easier for businesses to receive payments anywhere in the world, keep track of daily business transactions, and increase their revenue.
4. The Rise of Digital Payments Has Sparked New Business Opportunities
Another amazing fact about digital payments is that it is fueling new business opportunities that would not have existed before. Digital payments has been a huge benefit for both businesses and customers in this generation, while it also create new business opportunities around the world.
For instance, the rise of digital payments birth the biggest fintech companies in Africa in the past ten years. Some of them are Flutterwave, Paystack, Paga, Opay, Yoco, Fawry, and many others.
Also, the rise of digital payments has birth new business opportunities like an e-commerce bot that automates product recommendations and pricing optimization. Marketing automation bots, lead generation bots, and other B2B tools that businesses become more productive, efficient, and increase revenue.
5. Digital Payments Enhance Financial Security
It is very obvious that cash and checks payments are not as safe as digital payments due to fraud, cash losses, theft, etc. Dealing with and handling cash is a rather difficult and time-consuming chore. Carrying cash everywhere you go and keeping it secure comes with a high risk of money loss.
To avoid issue like this, digital payments come to the rescue. Many people now keep most of their money in digital wallets with less cash at hand. Digital payments systems are highly secured than other payment method.
E-wallets offer consumers an additional layer of security by including payment verification capabilities like fingerprint, PIN, and pattern. Additionally, when you pay a merchant, a digital wallet's tokenization technology generates a special identifying number. Your personal information is encoded during this process, reducing the possibility of fraudulent purchases.
6. Digital Payments Come In Different Forms
An amazing fact about digital payments is that it has different types such debit card, credit card, e-wallets, Point of Sales Machines (POS), mobile app, USSD (Unstructured Supplementary Service Data), and peer-to-peer exchanges like Venmo.
These different types of digital payments make it easier and faster for anyone to make payment comfortably without any stress. We all pay for things online, and there is no form of payments that rules them all.
It's crucial to keep in mind that each method of payment has advantages and disadvantages. For instance, using a credit card can improve your credit score if you pay the balance in full each month, but it also means you'll be responsible for paying interest on any charges if you don't.
In contrast, instant money transfers are possible with e-wallet services like PayPal, but depending on how frequently you use them, fees may apply. One thing is certain: With so many digital payment options accessible today, making sure you get paid what you deserve is simpler than ever.
7. Majority of Digital Payments Happen On Mobile Devices
As at 2022, a report from Oberlo stated that the global numbers of smartphone users is estimated at 6.6 million, marking a 4.9 percent annual increase. A very high percentage of mobile phones are capable of making digital purchases and since Apple Pay originally started giving customers a simpler way to pay for items, we've come a long way.
A report by Statista stated that mobile money operations in West Africa accumulated a value of 178 billion U.S. dollars in 2020. This represents an increase of 46 percent from the previous year, when 130 billion U.S. dollar was registered. Overall, compared to other regions of the world, sub-Saharan Africa recorded the highest mobile money transaction value in 2019.
However, many people have yet to fully embrace mobile payments, though; and if they don’t start soon, they might be missing lots of benefits others who are using digital payments are enjoying.
8. Big Players are Getting Involved
Paypal, the highest valued digital payments platform in the world, enable online money transfers between individuals, while its focus is now shifting to merchant transactions. Through Square, smartphone users may take credit card payments.
Additionally, Amazon just unveiled Amazon Cash, a platform that enables users to use an app on their smartphone to make purchases in physical stores. This is only a small sample of the developments in digital payments. The future has arrived and it appears promising.
9. Digital Payments Mean Quicker Checkouts
The fact that everyone must wait while someone pays with cash or a check is one of the main issues with today's checkout procedures. Checkout lines move much more rapidly with digital payments because there are fewer processes and mistakes are made.
Nobody likes waiting when they could be returning to their jobs or leaving for home after a long day. Digital payments facilitate our daily lives by accelerating errands like grocery shopping and eating out.
10. They Help to Drive More Sales And Business Revenue
Customers' buying experiences are enhanced by the seamless checkout process. On the other hand, mobile wallets have simplified the purchasing procedure, which will help e-commerce websites reduce their cart abandonment problems. In the end, it will contribute to the business’ revenue growth because customers can complete payments faster.
We are in a digital age and different technologies and innovations are erupting daily. It is very important for businesses and individuals to embrace this new system of payment called digital payments before it catches them unaware.
Digital Payments have many huge benefits over traditional payment like cash or checks. Although, there are still many businesses and individuals who are yet to embrace this digital payments system. However, In the next five years, cash transactions will reduce drastically and digital payments will increase like never before.