Currency Notes Have Been Replaced By Plastic Money And Now It Is All About Electronic Money
Currency notes have been replaced by plastic money and now it is all about electronic money. Discuss advantages and disadvantage.
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Band 9 IELTS essay sample
People no longer carry currency notes in the wallets. Most of them do not carry a wallet either. It is now possible to perform nearly all financial transactions with the help of a mobile phone. Yes, we are now living in the age of electronic money. This essay will discuss the advantages and disadvantages of this transition from paper currency to electronic payment options.
To start with the advantages, the advent of electronic money has enabled people to pay on the go. Earlier they had to carry their debit or credit cards in their wallet. Although these cards eliminated the need to carry cash, they had their limitations too. For example, they could only be used at payment terminals. In fact, many small stores did not have the provision to take cards. They still insisted on cash transactions.
Electronic money completely revolutionized the situation. Now people only need a smart phone and a mobile payment app to send or receive money. These mobile payment and internet banking apps have transformed the way we make payments now. They have totally eliminated the need to carry cash and enable both individuals and organizations to send and receive money. The main advantage of these apps is that they do not require a payment gateway. A mobile phone is more than sufficient. Also, money is transferred instantly. As a result, even the roadside vendor can now receive money in his mobile wallet. This is advantageous for the governments too because digital transactions eliminate black money to a great extent.
On the down side, this ease of making payment is triggering impulsive purchase. Earlier spending was limited to the amount of money people carried in their wallet. Now, there are no such limitations. Also, there is the risk of fraud. If the phone is lost, the payment information saved on it can be easily misused. While these payment apps are tightening security, the risk of fraudulent transactions still exists.
To conclude, electronic money comes with both advantages and disadvantages. It has enabled to people to pay as they go and maintain a record of their transactions. It has also triggered impulsive buying and increased the risk of fraud.
Currency Notes Have Been Replaced By Plastic Money And Now It Is All About Electronic Money – Band 8 IELTS essay sample
In the last few years, currency notes have been replaced by the plastic money such as credit and debit cards and now online transactions have been gaining enormous popularity among people. This essay will discuss the merits and demerits of this development.
There are several compelling reasons behind this change. To start with, convenience is a big reason for people to do an online transaction instead of using plastic money. Now in a single click, one can transfer any amount of money to a recipient. It has not only made a normal person’s life easy, but also benefited commercial entities. For instance, in India, thirty five percent of the small enterprises use electronic fund transfer for their business transactions. Moreover, it has helped the government in curbing the illegal cash transactions, which were the safest way for the criminals to use physical money for immoral activities.
On the contrary, this phenomenon has some demerits also. To begin with, people who are not tech savvy face a lot of difficulties in doing online transactions. In many developing countries, people do not even have access to the internet without which they cannot make the online money transactions. Besides this, people feel unsafe, while making any high value transfers. The cases of data theft and hacking of customer’s bank credentials are on the rise. It dissuades some people from transacting money online.
In conclusion, the online money transaction has benefits like convenience and curbing of illegal transfers; however, the demerits like data theft and limited use of this development by people who are not tech savvy cannot be ignored.
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