Top Challenges in Digital Payments and How to Handle Them

Introduction 

According to a Statista analysis, the total transaction value in the field of digital payments is expected to reach 11.53 trillion USD in 2024, indicating the growing prevalence of digital payments. 

Despite its expansion, the sector still confronts several issues that must be resolved to preserve a safe, effective, and dependable payment ecosystem. These difficulties include everything from security and fraud issues to compatibility problems and regional regulatory compliance. 

Together, let’s examine the difficulties associated with digital payments and determine how best to resolve them to establish a more safe, successful, and user-friendly payment procedure.

Process of Online Payment System 

The stages involved in digital payment processing are as follows:

• The client uses an application or logs onto their bank’s website to start the payment process. After that, they decide how much they want to spend and what payment method to use.
  
• The payment request is sent to the customer’s bank. It checks the customer’s information to make sure they have enough money to finish the transaction. The transaction is approved if the money is available, and the bank notifies the payment processor of this.
  
• After checking the transaction details and confirming that the funds are available in the recipient’s account, the payment processor forwards the information to the recipient’s bank. The transaction is handled if the funds are accessible and the payment processor receives a confirmation message from the recipient’s bank.
  
• The money is then sent from the customer’s bank to the recipient via the payment processor to complete the transaction. A clearing house, which serves as a go-between for the banks to guarantee a safe and effective money transfer, is typically used for the settlement.
  
• To verify that the funds were received and deposited to the recipient’s account, the payment processor receives a confirmation message from the recipient’s bank. The payment processor subsequently confirms the transaction’s completion by sending a notification to the customer’s bank.

Top challenges in Digital Payments.

There are several security issues for companies that take digital payments, including:

1. Risk to Third Parties

Nowadays, a lot of businesses depend on outside parties to manage important company operations to cut expenses and boost productivity. If businesses do not thoroughly screen their third-party providers before entering into a commercial partnership, this can lead to layers of added risk. This problem is made worse by the fact that a lot of third-party suppliers are also contracting out their tasks to outside parties, which increases the danger of fourth and fifth parties.

2. Phishing Scams

Phishing is still a successful hacking technique in the digital economy, despite being one of the most established techniques for data theft. Phishing scams are conducted by dishonest individuals who pose as trustworthy organizations, such as banks, lending institutions, or universities, and send seemingly harmless communications typically in the form of emails to customers who are unaware.

To fulfill an urgent request, such as filling out a loan application that needs banking information, the hacker typically requests sensitive personal information. Once the target of the assault cooperates, hackers may access the money in their bank accounts and credit cards using their data. Phishing attacks have the potential to reveal data and result in theft for both senior management and junior employees.

3. Malware

When people download an application, file, or attachment that includes harmful software, malware is created. The hacker running the program may access all of the data saved on the device after the virus has infected it. Although many businesses have antivirus and firewall programs set up on their laptops and desktop computers, they sometimes neglect these security precautions when it comes to their mobile devices.

Safest Method of Online Money Transfer.

TangoPay

TangoPay was created with speed and ease in mind, so if you haven’t used it yet, you’re losing out. TangoPay is an innovative money transfer app that makes sure your transactions run smoothly. It makes transferring money to Pakistan much easier and is quick and easy!

• Fees and Rates

Being taxed is disliked by everyone. That’s the good news, indeed. You may send money to Pakistan from the UK with TangoPay for free. In other words, you get what you see.

• Sending and Receiving Options

Do you need to transfer funds directly to a bank account? Do you want to select cash in person with your family? Think of that as completed. With TangoPay, you may send money straight to your loved one’s account or arrange for them to come and pick it up from the local branch of the bank. For added convenience, you may also transfer money to a mobile wallet.

PayPal and Venmo

PayPal may be a cost-effective way to send money. It enables electronic money transfers between PayPal accounts for both people and companies. PayPal allows you to transfer money for free, but there is a cost for the recipient to cash the payment. 2.9% is charged for transactions up to $3,000, plus $0.30 for each transaction.

Another user-friendly money transfer program that facilitates peer-to-peer payments at no cost is Venmo, which is also owned by PayPal. There is a minor cost associated with business payments, which is often covered by the company.

Western Union or MoneyGram

MoneyGram and Western Union both provide comparable services that let you send money to another city, state, or nation. They charge a fixed fee for the transfer, which is determined by the amount being transferred, the location you’re transferring to, and the speed of the transfer. You will also be charged an exchange rate if you are transferring money internationally or overseas. If you send money abroad, there will likely be a hidden fee because these money transfer firms often don’t offer a particularly competitive exchange rate. However, the fact that these services are often quite convenient and trustworthy is one of their main advantages.

Final Thoughts

You can obtain the greatest money transfer price by researching your alternatives and shopping around. Take your time and search the internet for the most recent cost details. Given the large number of top money transfer companies, it may be difficult to choose the ideal option for your type of business. However, there are secure and reliable apps like TangoPay that may help make the process easier, safer, and quicker.