Digital transactions are growing at an unprecedented rate not only in this country but the world over. India has seen the fastest rate of digital adoption in the world. In his latest monthly radio broadcast ‘Mann Ki Baat’, Prime Minister Narendra Modi touched upon the topic of cashless and digital transactions in the country. According to statistical data, twenty thousand crores worth of digital transactions has been recorded on a daily basis. The Prime Minister also urged the citizens of our country to conduct a unique experiment called ‘Cashless Day Out’, in a push toward digital transactions and building a vibrant digital economy. He also encouraged sharing one’s experiences with digital transactions as a source of inspiration to others. There are several advantages to going cashless and adopting the methods of digital payments and transactions.
- Facilitates instant payments: The need for going to the banks to make a payment has been eliminated by the electronic payment systems. Transactions can be made instantly by any individual through a smartphone or a laptop from anywhere across the globe. This has exponentially increased the time efficiency and has encouraged a larger number of people to switch to digital wallets and platforms.
- Lower risk of theft: With the maintenance of an electronic ledger that automatically updates every transaction in an individual’s bank account, the need to maintain manual registers has become redundant. This helps one keep track of their finances and reduces the chances of theft or loss of money through an accident. The use of digital payment systems has eliminated the need to keep and use physical cash.
- Increased transparency: Maintaining transparency is a factor paramount to any transaction between two parties. Digital payments and transactions enhance transparency by recording every transaction made. This helps keep the process clean and prevents the chance of any disputes in the future.
- A reduction in processing costs: A fixed subscription fee to the service provider is all an individual has to pay for sending and receiving funds into a business account. The method used before this involved a much higher processing fee and transaction costs.
- Helps track spending and budget discipline: There are various platforms that provide a friendly user interface to help track an individual’s spending habits relative to their income. This can help one streamline their budget and differentiate between their wants and needs.
These benefits also bring with them certain risks associated with cyber security. A call for an enhanced cyber security network and individual awareness is paramount when conducting electronic transactions. Every individual must be aware of the basic dos and don’ts that can help secure one’s finances.
- Using different passwords for different accounts can limit the damage to a single account in case of a hack.
- Keeping the passphrases and passwords confidential. It is extremely important to not share account passwords with anyone.
- It is important to keep your devices, password protected and secure when not in use.
- Always be careful of the public Wi-Fi networks that are available at hotels, malls, and railway stations.
- Never scan an unknown QR code. Also, it is important to note that there is never a need to punch in a security pin while receiving funds. A wide number of individuals have been victims of this scam.
From the steam engine to the development of the internet, the evolution in technology always had its drawbacks and disadvantages. Being self-aware of its pros and cons is the easiest and one of the most effective ways to take advantage as well as shield oneself from the claws of a cyber-attack. At FatakPay, we stand at the forefront of this technological evolution, facilitating and encouraging the use of digital transactions and payments with the help of our integrated user-friendly interface. Going forward, we believe that it is this technology that will act as one of the major growth engines of this nation and propel our country to new heights.