The advancements in payments and money transfers

Payment and money transfer is an essential aspect of today’s world. Moreover, now with time, the number of options for payment and money transfer is increased. Money transfer is merely transferring money from one place to another. It can be done both physically and electronically.

When we talk about payments and money transfers, the one thing that comes to our mind is that it should be fast, secure and straightforward.

Different modes of payment:

The payment can be made in a number of ways. Either by giving cash, doing telegraphic transfer or mail transfer, via money order or postal order, bill of exchange, promissory note, bank draft, etc. Let’s have a brief overview of them:

Cash payment is one of the oldest modes of payment, where the buyer pays money in the form of cash in return the seller gives a receipt.

The businessman mostly prefers postal order as a more significant number of postal orders can be collected and encashed at the same time. It is a lot safer than a money order. However, this method is not popular among the traders.

The promissory note is an unconditional undertaking signed by the maker, to pay a certain amount of money to the bearer.

The cheque is available to every account holder in a bank. It is one of the convenient and safer modes of payment. The name of the beneficiary given in the cheque avoids mishandling of checks.

Bank drafts are mostly used for transferring funds from one place to another within or outside a country. It is almost similar to the cheque, but a banker instead of the payer signs it.

Advancements in e-commerce:

With the advancement in technologies, the payment methods are also changing. Today you don’t need to take long bank lines for payment, as payment becomes just a click away.  It becomes faster than manual payments. This results in improved cash flow and also saves a lot of valuable time.

Money transfer:

Just like the payment process, in the modern technology world, transferring money by cash or cheque may seem absurd. In comparison to the advancements in the electronic payment process, the old methods have become less popular. However, that doesn’t mean that they are not available.

The speed of the transaction is one of the most significant advantages to money transfer. Where cheque may take a week or two to receive and get processed, a money transfer can be initiated instantly thus helping you avoid late charges or other fees that could result if you follow the old way.

It becomes even more flexible as bank account holders can easily set up different external accounts, and use them to transfer money back and forth. This makes it easy to move money around when necessary to make a significant purchase.

Payments and money transfers made through the wireless network via mobile devices are thought to provide more convenience and reduce the cost of trade. The mobile technology also made it easier for businesses to collect payments from their customers against purchases without handling cash. Also, the various organizations and payment platforms available are making it even more convenient to use.

Tahir Ismail

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