Year 2017 statistics show that there are 48.1 million mobile payment users in America and research predicts that this number is likely to increase to 74.9 million by year 2022. A quick look at the data suggests that we may be headed to a cashless society.
While you may think that the need to invest in digital payment platforms is more of a prime concern for private firms, the US government is likewise keeping up with the technology that involves mobile wallets and e-payments.
The availability of mobile payment options in various government transactions today is in compliance with a memorandum which was signed by former President Obama back in 2012. The said memo aims to build a 21st century digital government which effectively utilizes the latest technological innovations to better serve American citizens. To do this, It instructed local and state governments to modernize and enhance their systems by allowing the public to process at least two government services just by using their mobile devices.
Mobile Payment Is Everywhere
The modernization directive from Obama led to the expansion of government services that offer online payments. Nowadays, you can easily take care of property taxes, income taxes, and other fees without physically going to a government facility. With the help of mobile payment systems such as Samsung Pay, Apple Pay, and Android Pay, it seems like lining up to pay in government agencies will soon be a thing of the past.
The objective to build safe and convenient tools to process government transactions sure have many benefits but it also poses some risks. These pros and cons of digital payment options explain why America is yet to fully digitized their payment platforms. It is also why reports say that the US is still noticeably behind countries like China and UK in offering mobile payment facilities.Take a look at some of the good side and bad side of implementing e-payment options below:
The Advantages Of A Digital Payment System
Implementing mobile payment presents a win-win situation both for the government and the people. The government has an easier way to collect taxes and other fees while citizens enjoy the comfort of the digital system.
In addition, analysts predict that the advent of a cashless system will make it hard to conduct fraudulent dealings. The new technology will make it easy for the government to monitor every transaction made, thus making it hard to hide traces of money laundering or tax evasion. Cheaper cost is also one advantage as wireless platforms will eliminate certain fees. Furthermore, a cashless world will eliminate the time consuming and burdensome process of cash flow.
E-Payment Also Has Its Share Of Disadvantages
The convenience of paying for a service just with a few clicks on your smartphone or computer gives the government an efficient way to keep track of every transaction made. Though beneficial, a scheme that monitors your every move also raises issues of privacy and security. Likewise, the emergence of electronic payment options will further increase dependence on smartphones. In this scenario, a broken or lost mobile gadget would present such a huge predicament to the owner.
A wider gap between the rich and the poor is another drawback that a shift in the modern payment landscape may bring. People with limited resources to purchase high-end smartphones and fund mobile wallets may feel out of the place in the cashless world.
Rapid technological developments are indeed revolutionizing almost all aspects of society. Along with the need to adapt to the changing times, the government should also carefully weigh the pros and cons of shifting to a fully digitized system.
Mobile Payments Conference
To stay up to date in the latest changes in the mobile payments and fintech world, make sure to attend Mobile Payments Conference. MPC 2018 features industry leaders as panelists, keynotes, and speakers,