Technology Shift - Card-based Payments and Banking

The technology-based shift in card-based payments and bank accounts

Introduction
With the immediate evolution of digital banking, the consumer is finding it more efficient for managing
their overall finance via online platforms. It is observed that people are now easily applying for loans,
opening new accounts and also investing in financial markets as it becomes simple and takes less time.
According to Wang v Ouyang (2019)1, previously people had to invest lots of time to conduct such
processes but because of digital marketing, it has become easy for them. Moreover, the mobile
application is allowing the consumer to implement a wide range of tasks with just some taps on their
mobile phones and therefore, creating an enjoyable as well as user-friendly experience for them.
Smart payments
In today’s era, technology is increasing at a very rapid pace, but a very drastic change in the payments
system. Smart payment is all one payment which reduces the friction during checkout, all apps are
provided in one where an individual can access the apps and pay to the different vendors these online
payments become a helping hand for the local business which plays an integral part in boosting the scale
of business as it saves them time and cost which is there if one uses the old conventional
method .however the rapid evolution of smart payment system has radically affected the need if having
payments card and even bank accounts (Zsarnoczky, 2018). 2These include debit cards, credit cards,
electronic fund transfer, direct cards, directs debt and e-commerce payment system payments should be
physical or electronic but each has its protocols and process. A different version of apps are available for
Android, iOS, smartphones depending on the system one can install and recommends version and easily
enjoy the process online payments system which surely curbing rye users to go to the bank and use their
facilities for the various purposes
Technological disruption and efficiency
The economy is the backbone of every country and to make it alive or to sustain the different aspects like
money laundering, parallel economy banks play many roles. “The core one consists of maturity
transformation and liquidity provision taking deposits” from the public to make them long term. The
information is preceded by the customers as borrowers and depositors are very sensitive, conventional
secretive (Moniruzzaman v Khezr, 20203). The electronic revolution has largely boosted the weightage of
modifiable communication and means which boost this is Artificial Intelligence Machine learning. Then
the system is more related to data such as payments, and transaction services will be more affected.
Digital disruption in the finance side is propelled by both supply and technological advancement. The
consumer expectation toward the usage of facilities has changed from the technological viewpoint the
1 Wang, S., Ouyang, L., Yuan, Y., Ni, X., Han, X. and Wang, F.Y., 2019. Blockchain-enabled smart contracts: architecture, applications, and future
trends. IEEE Transactions on Systems, Man, and Cybernetics: Systems, 49(11), pp.2266-2277.
2 Zsarnoczky, M., 2018. The digital future of the tourism & hospitality industry. Boston Hospitality Review, 6, pp.1-9.
3 Moniruzzaman, M., Khezr, S., Yassine, A. and Benlamri, R., 2020. Blockchain for smart homes: Review of current trends and research
challenges. Computers & Electrical Engineering, 83, p.106585.
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“relevant factors are application programming interfaces, cloud computing, smartphones, digital
currencies and blockchain technology” (Hartawan v Putra, 20204).
Mobile phones become the second hand in the daily activities of the consumers as they provide financial
assistance to the users through different apps some are encouraging advice and others are helping in
regulating money transactions there are apps like money control that can supervise the finances of users.
The 3rd Party designers capture the customer interface and provide various functions like payments,
money transfers, online shopping (Zheng v Sang, 20185). Digital wallets become very popular among the
users as it is convenient and time friendly even though the old conventional system like visa master card
is still leading the market for the transaction it has been seen in western countries like Africa, Asia where
people at more likely to engaged with the online payment system rather having regular bank accounts
Traditional system
The digital currencies have deteriorated the old traditional system the traditional system of money has
advantages as it has proper a tire value unit of account many examples of digit currency like Alipay, wet
play in China as it is not awful to sit that ancestral payment system is better because Ut curbs the danger
of hacking controlling all the money (Karim v Haque, 20206). In the world of digitalization, some ample
hackers can hack the data and convert consumers' money into their accounts whereas the banking
payment system provides the full surety of confined information.
Competition and the role of regulations
What are the regulatory outcomes of digital disruption? “How should BigTech and FinTech firms be
regulated”? Guideline will impact the sort of contest among occupants and contestants. The primary issue
is whether guideline ought to focus on a level battleground or whether it ought to incline toward
contestants to work with rivalry.
The 2007–2009 financial crises have given rise to new approaches concerning competition in the
financial services sector. “A case in point is the 2015 UK reform in which the FCA gained concurrent
powers for enforcement of competition policy” (Singh v Miah, 2020) . 71 Supervisory authority of several
countries now holds some contest-associated powers. Synchronous abilities among bosses and
competition specialists introduce some complicatedness, yet it is positive that customer and financial
backer assurance in the monetary area are under a similar rooftop as rivalry, since purchaser
4 Hartawan, M.S., Putra, A.S. and Muktiono, A., 2020. Smart City Concept for Integrated Citizen Information Smart Card or ICISC in DKI
Jakarta. International Journal of Science, Technology & Management, 1(4), pp.364-370.
5 Zheng, P., Sang, Z., Zhong, R.Y., Liu, Y., Liu, C., Mubarok, K., Yu, S. and Xu, X., 2018. Smart manufacturing systems for Industry 4.0: Conceptual
framework, scenarios, and future perspectives. Frontiers of Mechanical Engineering, 13(2), pp.137-150.
6 Karim, M.W., Haque, A., Ulfy, M.A., Hossain, M.A. and Anis, M.Z., 2020. Factors influencing the use of E-wallet as a payment method among Malaysian
young adults. Journal of International Business and Management, 3(2), pp.01-12.
7 Singh, H. and Miah, S.J., 2020. Smart education literature: A theoretical analysis. Education and Information Technologies, 25(4), pp.3299-3328.
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Advantages of contactless payments
 Easy to use - People always have hassle in punching their pin however contactless payments can
make the quicker transaction Safer technology- Tap to pay method of payment are far better than the other mode of payment
system The flexibility of the payment system – Unlike the banking system e payment are available 24/7 a
person can use the facilities any time with the easily accessible norms which are not present in the
traditional payments system
Challenges of contactless payment Limited acceptance –retailers and consumers who are not technology friendly can find it
difficult. Consumers will always be disappointed by the spotty coverage
 Technical limitations- customers can face some problems because of technical glitches
such as hacking, no user-friendly apps and much more
 Limited international availability- mobile contactless payment may not work
internationally. As there are some app which doesn’t support the online transaction
Critical analysis
The shift towards the digital realm has been accelerated due to the covid-19 pandemic. With lockdown
restrictions holding the typical bank-office development back from happening, and with social-isolating
measures further diminishing the open doors for in-person commitment, virtually all parts of the world
has seen the utilization of the web and portable “financial administrations soar since the beginning of the
infection toward the finish of the principal quarter” (Luna v Liebana, 20198). COVID-19, for example,
has "massively affected" advanced bank, with the end goal also that specialist has predicted that its whole
market would grow at a CAGR (compound annual growth rate) of 10% somewhere between 2019 and
2026, resulting in a pay of $1,702.4 million.
The research represents how vulnerable banks did become. A review distributed in January 2020 from
investigation firm FICO, for example, found that just about four of every five Asia-Pacific banks (78%)
accepted the presentation of constant instalment stages like P2P (shared) moves and portable instalments
had brought about expanded extortion misfortunes. Right around a quarter (22 per cent) said that they
anticipated misrepresentation to rise fundamentally over the accompanying year, while an extra 58 per
cent anticipated a moderate ascent in extortion (Wenner v Bram, 20189). "While the comfort of
8 Wenner, G., Bram, J.T., Marino, M., Obeysekare, E. and Mehta, K., 2018. Organizational models of mobile payment systems in low-resource
environments. Information Technology for Development, 24(4), pp.681-705.
9 de Luna, I.R., Liébana-Cabanillas, F., Sánchez-Fernández, J. and Muñoz-Leiva, F., 2019. Mobile payment is not all the same: The adoption of mobile
payment systems depending on the technology applied. Technological Forecasting and Social Change, 146, pp.931-944.
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