Innovative Use of Technology for Electronic Payments with a Positive Impact on Society

Innovative Use of Technology for Electronic Payments with a Positive Impact on Society

Currently in the society, many organizations and startups have started embracing the use of innovative technology such as electronic payments and mobile transfer while dealing with money. However, this has not picked up much as most people still consider a cash system as being more appropriate than a cashless system. Although many citizens still value a cash system, there are those who believe and understand that electronic payment and mobile transfer of money is less bulky and more efficient. Merchants and traders also agree that a cashless system is better in terms of accountability and monitoring an organization’s transactions “TURBAN, MCLEAN, WETHERBE, 2009”. Additionally, the financial industry is currently relying on a cash based system. However, they note that this system has its challenges such as bulky, lack of accountability among many others. The main benefit of a cash based system is that it offers a backup solution when the electronic payments and mobile money transfers fail.

However, as stated earlier, the society has begun adopting a cashless system of payment using mobile money transfers and electronic payment systems. Innovative areas in the society where technology can be used to provide payments include the EMV enabled payment cards and in organizations that do not accept cash transfers. Banks should also adopt a cashless system by advocating for the use of the EMV enabled payment cards, which their customers can swipe at any joint whenever they need to make payments “TURBAN, MCLEAN, & WETHERBE/ 2009”. However, the payments space of technology poses many challenges and risks to the electronic payment system. This is because of the prevalence of cybercrimes in the society and the fact that some people can steal information that can wipe any transactions through malicious cyber activities. The adoption of EMV enabled payment cards is likely to help in influencing the effectiveness of monetary policy as well as cashless payment transmission mechanisms.

Some of the key areas in which technical innovation in electronic payments can be used include government payment systems, payments for startups and small businesses as well as payments for businesses conducting online. Banks could merge up with small businesses and government institutions to ensure that innovation based payment systems are adopted and implemented in the society. Key areas of technical innovation in which electronic payments could benefit include the emergence of new systems such as cloud computing among others “LEE/ 2010”. Other areas that electronic payments would benefit from are banks, and government institutions as well as shopping in supermarkets. Such organizations will benefit by attaining accountability and efficiency in their systems while electronic payments will be promoted and marketed to many