After demonetization, we are rapidly moving towards the cashless payment modes, but this has invited lots of concerns. We cannot configure whether the credit card payment gateway is a blessing to the e-commerce payment gateway or will be a curse for the same.
Government is offering certain discounts and even free gifts if you choose to pay through cashless or credit card payment gateway while you are buying from the online stores or departmental stores. The government preferred to use cashless mode of payment as the only mode for e-commerce payment gateway. We all are aware of the benefits of cashless payments but still, there are many disadvantages of this mode of e-commerce payment gateway. Let us know them in details.
Benefits of Cashless and Credit card payment gateway:
1. Transactions are tracked:-
If you use this form of payment mode then you will be having the entire record of how much money you have spent on which purchase.this will make your job easier while you want to fill your income tax returns or even for your sole budget making.
It is very easy and hassle-free payment mode.there is no risk of carrying your cards, hard cash everywhere, rather you can pay where ever you want. So this safe and sound way of paying as well.
3. Disciplined spending:-
As you will be informed every time how much you have spent and what the remaining money left in your account then you will be spending less . This way there will be more investment than spending on shopping.
4. Limited Risk:-
Unfortunately, you lose your credit card or the mobile wallet then you can block the card immediately but if you lose your cash then you will never get it back. The loss of cash can be very troublesome when you travel, so cashless payment is better than carrying cash. The credit cards which will be coming with biometric senses, so it will be difficult for the thief also who would be stealing the cards.
Pitfalls of Credit Card Payment gateway/Cashless payment gateways
1. More risk of the identity theft:-
Most of the people still don’t rely on and trust the online payment system because either they are not well versed with this digital payment or they are afraid of the online fraud which happens every second around the globe.
2. Fear of losing phone:-
Every time you have to be very careful about your phone as all the transactions will be done through it. But if by any chance you lose your phone or if it’s stolen then you will be at a total mess because you will be in a situation where you don’t carry cash as you are totally dependent on your phone. Think of a situation that you have to a remote place in travelling abroad and you lose your phone how will you manage. Leave this stealing or losing part, you have to keep your cell charged 24*7 and this is really a strenuous job.
3. Everyone is not a tech-savvy:-
India is a country where the maximum population is not so advanced and hardly has the smart phones. We are still known as under developing country and the maximum of the people residing will not be able to understand the digitalization due to which cashless payment will not be their cup of tea. These people will not be able to download the apps which are essential for doing online payments as well. We can conclude that this online payment mode for the e-commerce payment gateways are not that much acceptable and popular as they are in the other parts of the world.
4. More spending:-
It is found after a thorough research that from the time online payment or credit card payment gateway is used, there is no stoppage in spending the money. It is stated that people who shop with hard cash tend to spend less than the people who use these digital form of payment. If you are a person who has no control over yourself while you are shopping then this online payment is not for you.