Digital payments
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A Comprehensive Guide to Digital Payments: Types, Uses, Benefits, Risks

In the digital age, electronic payments have become a magnet for most users around the world. There are different types of digital payments, and the requirements to use them and the benefits they offer compared to cash are worth taking into account. The cybersecurity challenges that companies face with digital payments, including scams and reputational risks, are still important to take into account when choosing one or another type of payment.

For example, we have the best-known credit and debit cards: Credit and debit cards are a common form of digital payment and allow transactions to be made online and in physical stores, offering convenience and security, but we always recommend that you use virtual or prepaid cards. The reason is that there are hacks on entities of any type every day, and if users have used payment tools like the ones described above, these would be exposed on the Internet and within the reach of any cybercriminal who wants to use them.

Digital wallets, such as Apple Pay and Google Pay, allow you to store payment information on a mobile device and make payments without the need for a physical card. These can be virtual or payment cards, so if your device is stolen, this could be used to pay fraudulently, but in any case, the damage would be minor, and cyber insurance covers greater operations on the Internet.

Electronic bank transfers allow you to send money from one bank account to another quickly and safely but we will always recommend that the entities used do not make use of immediate transfers, since they only have ten seconds to check if the account holder account corresponds to the screen name. Sometimes scam or fraud situations can arise, and these are more complicated to foresee.

Cryptocurrencies, such as Bitcoin, Ether, Binance Coin, Tether, Monero, or Solana, are decentralized digital currencies that use blockchain technology, but there are many more on the market with different characteristics and use cases. It is important to research and understand each one before investing in or using them.

How to Make Payments Online?

It is important to understand that to make online payments, we need to use electronic devices, such as a Smartphone, a computer, or a tablet, with Internet access.

It is recommended to use a stable and secure Internet connection, and to do this, we will always use a paid VPN or a proxy. No connecting through public or shared WiFi, unless we have, for example, a secure hotspot.

What Are The Benefits of Cash?

Digital payments allow you to make transactions quickly and easily without having to carry cash or checks, therefore, they are usually more convenient with the new, fairly fast lifestyles.

Digital payments offer higher levels of security than cash in the sense of guaranteeing greater control over the underground economy since transactions are recorded and can be traced in cases of problems or criminal offenses.

Digital payments allow transactions to be carried out anywhere in the world, eliminating geographical barriers and therefore also offering greater convenience for tourist mobility or expatriate companies.

The promotion of financial inclusion is no less important, and digital payments provide access to financial services to people who do not have access to traditional banks, no matter how simple it may seem to most of us.

Are There Any Risks When Using Digital Payments?

There are situations such as online scams where companies and people are victims, such as in cases of phishing, vishing, or smishing, where attackers try to obtain confidential information by posing as legitimate entities, and it should be noted that they are on the rise, it seems that training is not proportional to the increase in said activities.

Companies, public entities, and public figures can face reputational risks if their digital payment systems are compromised and their customers or their data is compromised.

Payment data stored by companies is subject to theft, and it is not anecdotal because it happens daily, resulting in financial loss and damage to the company’s reputation.

Final thoughts

In conclusion, there are indeed digital payment methods that are safer than others, but we still need to rethink the way these payment methods are established and confirmed because attacks can have serious consequences for the reputation and financial stability of companies and society.

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