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Cash vs Digital Payment - Battle of Technology in 2022

Cash v/s Digital Payment - Battle of Technology in 2022

23 Aug 2022

Are you overwhelmed by the sudden and drastic shift and dependence on digital payments and the gradual eradication of paper money?

Technology is advancing with every passing day. Everything has changed drastically from cash payment methods to digital payment after digitalisation. Countless diasporas spread worldwide make cross-border money transfers daily. Most people from developing countries live and work in foreign lands to ensure better financial support for their families back home. These global expatriates now rely on digital money transfers for security, speed, tracking, low cost, the best exchange rates, and many other features. For instance, Pakistani expats working in foreign countries prefer to send money online to Pakistan because it is easier and more convenient than sending cash. 

In the aftermath of the epidemic that occurred in 2020, the remittance industry's progress has continued slowly but steadily. The payment sector had to develop flexible and inventive solutions to meet demand. Most payments shifted online due to the quarantine period and lockdowns in different parts of the world. Digitalisation saw a massive hike in the previous two years. Most of the world shifted toward digital payments instead of cash due to its numerous benefits. 

Why has Digital Payment become so essential in this century?

Since the epidemic outbreak, companies have had to change how they accept money. Contactless payment and other digital means are becoming increasingly popular, with some firms already refusing to accept cash payments entirely. Digital payments are viewed as simple, painless, and cost-free transactions. Customers today feel confident utilising digital payments because, as technology has evolved, the danger of fraudulent transactions has decreased dramatically. For instance, every Pakistani expatriate working abroad tries to find the best way to send money to Pakistan online and avoids conventional methods to escape several troubles.

Digital payments are quick, simple, and meet the needs of the majority of consumers. Everyone today is constantly seeking convenience and wants everything before even asking for it - and digital payments provide you with such solutions. It's crucial to provide your customers with more than one payment option. Several digital payment options are expected to continue to gain popularity in 2022. Payment through credit cards and debit cards is increasing; people use their cards in stores to pay and avoid using cash.

Increasing usage of payment cards in locations with inadequate internet connectivity

The usage of credit and debit cards for payments is increasing. There is more possibility for consumers to use their cards for recurring payments now that the limit for contactless transactions has been improved, and credit cards allow easy and secure access. This is projected to accelerate in cities outside of metros due to legislative measures such as the Payments Infrastructure Development Fund (PIDF) and offline payments, which aim to expand the usage of digital payments in locations with inadequate internet connectivity.

How have digital payment methods saved our time?

People had to wait for long periods in queues to obtain their cash in the early 2000s and before. Cheques are the most widely used form of sending and receiving money. All of these old traditions have been entirely replaced by online payment options. People no longer have to wait in lines; instead, they may send money to their loved ones with a single click. People living overseas can send money to Pakistan utilising various internet services and online money transfer methods. Another payment technique that will experience rapid growth in the year 2022 is contactless payments. As the name implies, customers can make contactless payments by waving their smartphones across the reader. To make a payment, all consumers must download the app, add a card by entering card information, and then scan their phone over any reader. 

Hesitancy with the digital payments

Many elderly and fearful individuals are hesitant about shifting to digital payments. Giving your information online has its risks and security problems. However, this does not stop the world from digitalising completely. With every risk factor comes a coping mechanism to minimise the risk. 

Digital Payment comes with the risk of cyber security.

Online Payment Methods lead to an increased risk of cyber security. The rise of e-commerce, the growth of non-cash payments, and increased cyber threats will continue to generate a greater focus on payments cyber security. The private sector is also aware of the issue, with nearly two-thirds of companies expecting to increase their fraud detection expenditure. In 2022, behavioural biometrics such as tracking customers' swiping, typing, or phone-holding tendencies will be widely accepted. Every new technology comes with certain risks, but smart individuals know how to handle the drawbacks and take full advantage of the benefits. 

Biometric Authentication as defence from scams 

Biometric authentication is a means of verifying a person's biological and anatomical traits. These verification technologies include fingerprint scanners, facial recognition, iris recognition, heartbeat analysis, and vein mapping. With the surge in identity theft and fraud, biometric authentication could become a safe and reliable option for all digital payments in 2022. This new digital technology will help users escape any kind of scam and fraud. 

How is ACE Money Transfer playing its part in this new digital payment technology?

ACE Money Transfer has continually provided a rapid and safe money transfer service to recipients in over 100 countries. Furthermore, ACE is constantly expanding its network to bring them closer to their loved ones by adding other currencies. It values its clients' trust and takes it seriously. ACE Money Transfer has a global network of over 350,000 Payout locations and 1.3 million customers worldwide. It provides efficient, smooth, and secure transactions when you need to make an online money transfer to Pakistan or elsewhere.  

ACE uses its strengths to its customers’ advantage and devises tactics for areas it needs to develop. It continues to use newer, faster, and more secure techniques to provide you with professional assistance. ACE Money Transfer connects people worldwide with the correct financial solutions and access. ACE is the trust of millions when sending or receiving money in a secure and timely manner.

Sign up on ACE to join the rising trend of digital payments with safe and secure transactions. 


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