With the continuous promotion and application of digital payment methods, a “cashless society” is taking in shape. Nowadays, we are more and more accustomed to using paysafe wallets and scan QR codes when we go shopping or traveling. As a useful supplement to the traditional payment system, digital payment is one of the latest leading forces in the modern payment system.
What is digital payment?
Searching for the concept of digital payment on the Internet found that the explanation can be roughly divided into two types. The first explanation is to equate digital payment with digital currency. In many cases, the title is digital payment, and the content is digital currency. The second explanation is electronic payment.
First of all, the author believes that equating digital payment with digital currency is conceptually a compromise. Payment is a mode and an action, and currency is a kind of goods and a medium in the payment process. Digital payment, like cash payment and mobile payment, is a model born from the development of payment to a certain extent.
Digital Payments are payments that are conducted over the internet and mobile channels and hence, any payment that is sent online or through mobile computing and internet-enabled devices can be called such.
Opportunities and Challenges of Digital Payment
Digital payment plays an important role in reducing social transaction costs, preventing money laundering and corruption, while facilitating people’s lives and promoting economic development. The most notable feature of digital payment is the significant increase in transaction efficiency and speed. A calculation shows that in a parking lot where cash transactions are used, it takes an average of 10 seconds for a car to go from the toll gate to the exit, while digital payment only takes less than 2 seconds, which increases the transaction efficiency exponentially.
However, while digital payment brings us tangible convenience, it also poses challenges to our information security, payment habits and even national financial security. How to guide the healthy development of digital payment has become a problem that needs to be solved urgently.
At the technical level, QR code payment may have security loopholes; at the market level, some payment institutions may embezzle reserve funds or engage in unfair competition to disrupt market order; at the compliance level, some market institutions may illegally acquire orders, etc.
In addition, some deeper problems also need to be solved urgently. Digital payment is relatively friendly to young users. The young are generally familiar with the payment process and have a certain awareness of information security. They can effectively protect personal information and property information from leaks. However, what about the elderly, illiterate, and disabled people? Digital payments often result in the leakage of their personal sensitive information and property losses. Relatively speaking, digital payment has caused more harm to them.
The positive role of digital payment cannot be denied, but the disadvantages still need to be treated with caution. The endless electronic fraud cases show that the financial information security behind digital payment needs to be solved urgently. In terms of ensuring the security of financial information, individuals need to increase their awareness of financial information security, regulate the use of digital payments, protect the security of payment passwords, and do not trust unfamiliar calls or transfer funds easily. For digital payment providers, they should establish the cooperation with the public security organs to establish
e a rapid response channel, and the funds involved in the electronic frauds case can be frozen as soon as there is an alarm, and the investigation can be carried out in a timely manner to make up for the situation.
Digital Payment Provider: Oceanpayment
As digital payment provider, Oceanpayment designs digital payment solutions based on the payment habits of consumers in various countries and regions to meet their payment needs, making the lifestyle involved in payment safer, more convenient and simple. With global digital payment solutions, Oceanpayment provides omni-channel strategies for global merchants, combines online and offline platforms, attracts and serves consumers, and helps merchants to adapt to digital payments faster and safer.
For more details, please contact us here at: https://www.oceanpayment.com/contact-sales/