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Understanding Digital Money and its importance

Introduction

To understand digital money and its importance firstly you need to understand the meaning of digital money. Digital Money is a type of money that is available only in digital and electronic form. All the transactions done through these currencies are made using electronic wallets or computers that are connected to the internet.

Digital Money

Creative digital money solutions are the response to the demand for real-time, agile, and customized services. Transforming from the traditional version to online service has gained much popularity. Digital money solution is a modest method for banks to manage and distribute their funds in the form of digital money and specially designed to replace currencies.

Merits of Digital Money

  • The main benefit of digital transactions is the easy and rapid process of accomplishing transactions. All the amount of transactions is completely done through a safe and secured server and therefore users enjoy the versatility in doing transactions without bothering about any risk.
  • It withdraws physical connections and hence manual accounting and keeping of records for transactions are avoided.
  • Digital money has compressed the amount of time and the cost required to transfer money across borders. It also has the additional capability to restructure the industry by terminating intermediaries and further reducing the cost attached to the cross-border transfer.

Demerits of Digital money

  • Digital money permits hacking. Hackers can steal money from digital wallets and also hacks of digital money on a gignatic scale have the capability to bring down a company’s economy and become a national security threat.
  • The major drawback of digital money is that users have to compromise their privacy. All the important information and data can be achieved easily by hackers and it would be risky for everyone.
  • As it is new technology and at an early stage of development so there is no guarantee that the cash you hold will have its value in the future.

Top Digital Payment Trends

Digital payment methods have seen enormous growth in the past few years. Customers are also becoming more conscious of digital payment techniques. Here are some top digital payment trends that everyone should know

Biometric Authentication

This is the most prominent trend that verifies fingerprints, facial recognition, analysis of heartbeats, and much more. As fraud and theft are rising biometric authentication has become a more secured and authentic option for all digital payments.

EMV Technology

This technology is known for generating codes that differ every time a transaction takes place. With the help of these temporary codes, it upgrades the security in the bank.

Smart Speaker

Smart speaker permits their customers to offer voice commands to provide all kind of information. This evolving technology can also be utilized for transactions in the future. However, However, some people have already started using this technology for making direct payments or sending money.

Contactless payment

This is one of the most important trends that is getting popular every day. The contactless payment permits the customer to just sway their smartphone across the scanner. This method is simply more suitable and secure than any other method. To make a contactless payment, a user needs to download the app, enter the card details and commence the payment. 

These were some of the main digital payment trends that are more useful nowadays. Now let’s have a glance at mobile money payment solutions. This payment method is used widely as they are rapid and convenient. But one must know the meaning of mobile payment.

What is mobile payment?

Mobile payment is a standardized transaction that takes place through your mobile phone. Minimize the use of cash, cheques, etc as mobile payment solutions permit you to do digital payments. How do mobile payments work? To start mobile money payment solutions firstly hold your mobile close to near field communication.

As there is no physical contact between your device, mobile wallet payments are known as contactless payments. In this generation using mobile money payment solutions is the best way in performing transactions as it is more reliable and secure.

According to the statistics, the mobile payment industry is lifting. Therefore to commence business in digital wallet app deployment is lucrative. This solution authorizes the addition of multiple types of payment cards and permits everyday transactions without carrying physical cards. Digital wallet app deployment consists of various steps:

Innovation phase

The innovation stage is a requisite part of app development. During this process, companies recognize their business requirements and analyze them with technical needs and match them with the new tech available in the market.

Design phase

The design phase is as crucial as the development phase. It assists to frame the experience of users and also helps the developers in further understanding features in the application.

Developing and testing phase

When the design is ready you can commence with the developing and testing phase. The goal of this app is to have the finest online payment app provided with essential features.

The final product of this stage is a complete MVP or a full-scaled e-wallet application. Here MVP(a minimal viable product) introduces apps’ basic features to the target audience.  

Final app launch and maintenance phase

This is the last and final stage of your app then you can release your product for the depletion of your audience. But the work doesn’t end here you must also spend time on maintaining it.

Summing Up

Digital money is used widely and has gained much popularity. It has conquered the issues related to cash and it has made the payment system speedy and secured. However, there are a few drawbacks as it can steal our data and it can be hacked. But it is still developing and it will play a vital role in the future.

Author – Bio

Author - Bio

Nikunj Gundaniya, Product manager Digipay.guru, one of the leading fintech solution providers, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.

Read More: Use Digital Marketing Strategy For Your Firm To Improve It

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