Online payments, also referred to as E-payments have increasingly become the most common form of payment in this digital age. They allow customers to make non physical payments for goods and services via bank cards, such as visa and Mastercard, and mobile phones over the internet. This form of payment brings along various advantages with it which include reduced costs, require less time, increased sales and reduced transaction costs for businesses. However, it also has its drawbacks that include internet fraud, identity theft among others that pose a security risk to online payments.
Online payments became widespread with the increase in online shopping trends. This has resulted to the number of people using physical cash to decrease drastically. Most businesses at present, although they still accept cash transactions, they do however prefer online, mobile or card payments because of the low transaction costs involved for both the customer and the business and the fact they eliminate the risks involved when handing physical cash. Since most people feel more comfortable and secure with the option of online payments, they tend to spend more which results to increased sales for businesses that accept this mode of payment.
Although cash and cheque payments do not always include extra costs, transaction costs, going to the store does cost money. Compared to offline payments, online payments usually have very minimal on no charge at all. in fact, bank recommend this kind of payment and as an incentive, they normally waive the fees involved or scrap them altogether. On top of these advantages, online payments are very convenient. They can be carried out from any corner of the world and the location of the recipient does not really matter.
Online payments also do have setbacks some of which may lead to huge losses especially to the customers. online payment systems are at all times at the risk of being hacked. This is successful, always results to the customer losing a lot more money than they intended to spend for their purchase. Hacking puts personal data at risk and compared to physical cash transactions, tracking hackers is easier said than done.