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Tuesday, November 30, 2021

Digital Payments: A Non-Technical Guide to Understanding How They Work

 

Digital payments are quickly becoming the norm. From apps to online stores, digital payments are changing the way we spend our money. It’s not hard to see why this is happening. With so many of us using mobile devices on a daily basis, it makes sense that we would want to use our phones for all of our shopping needs. However, many people have little knowledge about how these transactions work. In this post, digital payment specialist Ferhan Patel will explain everything you need to know about digital payments and how they work.


What is a Digital Payment?

A digital payment is a way to send or receive money online, by using your mobile device to make payments. This can be done through apps like Venmo, Apple Pay, and Google Pay.

Digital payments are convenient because it's easy to send money quickly without having to deal with any lines at the bank. It's also secure because transactions are only sent over the internet; there's no need for physical currency. You can use these payments for anything from buying groceries at the store to paying your bills online through your bank account.

This technology has opened up many possibilities for consumers and businesses alike. With digital payments, you're able to make purchases on the go, even if you don't have cash on hand. For retailers, this makes it easier than ever before to take orders.

Digital payments are becoming more popular than ever before—and that means businesses need them too! The benefits of digital payments are better customer experiences and improved sales numbers. If you're looking for a way to grow your business, look into adding digital payments as an option for your customers today!

How Digital Payments Work

Digital payments are not a new concept. In fact, people have been using them for quite some time now. You might remember the days when everybody used cash to pay their bills and make purchases. When electronic payments became a thing, they helped reduce fraud and gave consumers more flexibility in how they could spend their money.

In today's digital world, these transactions have become much more common. From apps, to online stores, to mobile devices, digital payments provide an easy way for people to shop without having to leave their home or office, explains Ferhan Patel.

In general, there are four types of digital payments: card-based payment methods, mobile payment methods, bank account transfer methods, and cryptocurrency exchanges.

 

The Benefits of Digital Payments

If you're a business owner, you probably know the benefits of digital payments. But if you aren't a business owner, here are a few reasons why people choose to use these methods for their transactions:

Not only does digital payments allow your customers to have a seamless shopping experience, but it also helps with customer service. In some cases, digital payments eliminate the need for cashiers as well as reduce operating costs.

Because they're so easy-to-use and convenient, it's no surprise that people would rather use digital payments than traditional methods.

 

Security Concerns

There are many security issues that come with using digital payments. Smartphones, in particular, can be easy targets for hackers. To ensure safe transactions, all iPhones and Android devices have the ability to require a pin number during the checkout process.

Another issue people may run into is when they need to return something. Many retailers offer free returns within 30 days of purchase. However, if you buy something online and then want to return it, there’s usually a fee associated with this transaction. That is why FinTech professional Ferhan Patel advises to read the store’s refund policy before you buy anything online so you don't accidentally get stuck with an unwanted product!

 

Conclusion

A digital payment is an electronic transaction made on a device like a computer or mobile phone, usually using a credit card. The first step to make a digital payment is to enter your credit card information. Next, you will be asked for the amount of money you want to pay and then the type of item that you want to purchase.

Once you’ve made your selections, it will be time for the sale! When purchasing the item, there will be some sort of confirmation process where both parties verify that they can proceed with the sale.

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