The tools with which you can control finances are constantly improving and there are now many new payment methods and applications that make one’s life easier. They can be especially helpful to people considering retirement who want to move between locations, sometimes in different countries, as they provide a nifty alternative to traditional payment services.
In this article, we will look at various modern payment methods that allow for smooth handling of all your finances. Find out why many people nowadays are choosing them over old-fashioned banking methods.
Transactional Speed
One of the first things that comes to mind, or at least the thing that people tend to notice the first, is the transactional speed afforded by modern payment methods.
Think about Google Pay or Apple Pay; it takes a second to open the app (in the case of Apple Pay, you need only double-click the power button) and to have the payment processed by a POS terminal. We tested both apps against regular contactless debit cards, and it surprisingly takes longer for card readers to process traditional bank cards.
In terms of online payment services such as PayPal, they also perform better in regards to transactional speed.
Take for example online casinos; they usually offer many payment methods, a mixture of older and newer methods, but players tend to choose the latter. Modern payment providers offering fast payouts to casino players are steadily overtaking old-fashioned withdrawal methods like debit cards and bank transfers, precisely due to their efficiency and speed.
Rather than type your details every time you make a casino withdrawal and then wait a few business days to receive your money, you can use your eWallets like PayPal or Skrill and have your transaction processed instantly.
Just as quickly and easily, you can use these eWallets to send funds to your friends and family and have them receive the money immediately. This way, retired parents can send their children pocket money with no more than two clicks on their phones.
Heightened Security
The true highlight of contemporary payment methods is their security. People might think that banks provide the best security because they are well-established institutions with good reputation, but newer payment services are actually safer due to the technology they use.
In order to show you what we mean, here’s a list of popular modern payment methods and their security mechanisms:
- Apple Pay/Google Pay – The two payment apps for iOS and Android, respectively, provide additional security for your debit card. Firstly, the apps require either facial recognition, a fingerprint or a passcode to authorise a payment, making it impossible for a thief to make a payment through your app. Secondly, a wrongdoer cannot steal your card’s number because it’s not shown in full in the app; even if they try to use technology to “extract it”, they wouldn’t be able to because both apps create a digital token in lieu of the real card chip.
- PayPal – PayPal is famous for its strict security protocols. All your data is stored in one secure online vault, while the transactions are encrypted end-to-end. What’s more, PayPal uses Two-Factor Authentication which protects you against people trying to hack into your account. Finally, if you suspect a fraudulent payment, you can report it to PayPal and have your funds restored.
- Cryptocurrencies (Bitcoin, Ethereum etc.) – Cryptocurrencies are incredibly safe because they use the blockchain technology which is purportedly impossible to hack. All payments are anonymous and encrypted, protecting your personal data, and they are all recorded on the blockchain which uses cryptographic principles, providing the most sophisticated online security.
Mobility
Another great feature of modern payment services is the mobility they afford. Back in the old days, when you moved to a different country, you had to immediately get a bank account which comes with residency requirements (you need a local address to attach the account to), so you basically couldn’t open an account until you were settled.
Those days are gone with payment methods such as eWallets. You can live for a decade in a foreign country without opening an account with a local bank. These financial innovations greatly aid digital nomads who move frequently, as well as retirees who want to travel the world with their hard-earned money.
Another plus of online payment methods is that you cannot lose access to them. If you were to lose your device, you can always open your profile from a new device. Even if you were to forget your password, you can still restore your account.
You don’t have to worry about losing your bank cards and having to ask friends and relatives to send you money via Western Union anymore.
Conclusion
We hope that this article helped you learn how modern payment methods work and why they are now preferred over more traditional payment services.
