Why are so many reluctant to switch to electronic payment systems?

2017-04-24 00:00:00:

At the present stage, the issue of storing accumulated funds is especially acute. More often than not, people prefer to use the usual way and transfer assets into cash, and then deposit it in banking institutions. Also, in the past few years, virtual currency has been actively used. Why is this option attractive to users?

First of all, payments with cryptocurrency have a confidential status. And virtual wallets, which store funds, are not tied to a specific user. Also, all payments are made an order of magnitude faster, and the size of the commission is minimal. Nevertheless, not all people are ready today to make the transition to electronic payment systems. What is the reason for this position?

How payment systems work

Today, the network has a huge variety of payment systems. In essence, they solve the same problems, but the principles of their work can be completely different. So, most of the owners of such resources purposefully introduce their virtual currency. And since they cannot boast of support from the authorities of a certain state, we have to create alternative names for them. For each new participant, joining such a system automatically means a transition to electronic money. Only in this case they can bear completely different names - checks, certificates, credit or payment obligations. In any case, the name does not change the essence of the matter.

The main disadvantage of such payment systems is considered to be the lack of security of virtual money. Thus, all risks are automatically transferred to their owner. It goes without saying that the payment system itself bears certain reputational risks. But their size is clearly disproportionate.

The financial infrastructure of payment systems is almost the same everywhere. Typically, it includes the following elements:

An official resource that users directly get to when switching to an electronic payment system. Registration of new participants is carried out on it. And also there is the functionality necessary for making payments.
Virtual wallets, which are storages specially adapted for storing data on clients funds.
Special devices for accepting money, as well as terminals. They are united into a common network, thanks to which the exchange of virtual money takes place.
ATMs and exchange offices. Only large payment systems can afford to create such devices and combine them into a single network.
In addition, reputable systems become partners of banking institutions, which further simplifies the work of their clients. But the transition to electronic money is still going on rather slowly. Although extremely favorable conditions have already been created for this process.

What are the risks of the transition to electronic payment systems

Even the most popular payment system has certain drawbacks that cause concern among potential users. First of all, no one is immune from an accident, as a result of which Internet access will be temporarily restricted. Accordingly, the user will not have access to his funds and will not be able to complete the transaction. In general, the transition to electronic payment systems always makes a person dependent on a number of technical systems, and primarily the Internet.

Disclaimer of Confidentiality of Operations. The main advantage of the first payment systems was their complete confidentiality. But the tougher requirements of the authorities are increasingly forcing resources to identify new participants. During the authorization process, the user must submit his passport and TIN. Accordingly, each of his transactions in the network will be recorded. This state of affairs categorically does not suit people who do not want to advertise the amount of their earnings.

Also, the transition to electronic money is often associated with the absence of any guarantees. This is perhaps the most important risk. So, a person can accumulate their funds for years on a virtual wallet. But if the system is hacked or simply ceases to exist, then the user will actually have no one to even complain to. After all, the authorities do not assume any guarantees.

That is why many users are in no hurry to become clients of electronic payment systems. The position of local authorities also plays an important role in this. Most governments look askance at the use of virtual money. That is why one should not hope for global changes in the near foreseeable future.