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Digital Payment: Advantages and Disadvantages

Digital Payment has proved to be the most popular option among a large number of people these days. It has almost shadowed the traditional form of cash payment while doing any kind of transaction. Why do you think people are shifting their interests to this form of online payment? Let’s find out in this article. 

The major reason behind the popularity of digital payment is it requires very little time and works very conveniently. It has made online payment transactions possible with a single tap on the phone. You don’t even need to carry your wallet everywhere and you can shop, pay bills, eat at a restaurant using the mobile banking services on your phone. Besides that, digital payment has a lot to offer for us if we know how to use it well. Let us first discuss the advantages of digital payment.

Do Read: Connect IPS Review: Elevates the Standard of Digital Banking in Nepal

Digital Payment: Advantages

  • Digital Payment can be done at any time, from any location around the globe. 
  • It makes huge money transactions easier and faster. 
  • It offers higher payment security. 
  • You don’t need to provide the details of your card or your bank account every time you do a mobile payment. 
  • It saves all kinds of processing costs that would occur if you had chosen to pay through your card or by cash.
  • There’s no risk of your money getting stolen or lost when you pay online.
  • You can easily keep a record of your payment details and all kinds of transactions that you make. 
  • Some mobile banking apps make your online payment experience better by offering different kinds of cash prizes and offers. You can enjoy it while paying your bills online.

How does digital payment work?

First of all, to understand digital payment you need to understand the mobile banking/payment apps that make digital transactions possible. These apps have been gaining a lot of popularity and admiration among their users. Some popular mobile banking apps of Nepal are as follows:

  • eSewa 
  • MeroShare
  • Khalti Digita Wallet
  • IME Pay- Mobile Digital Wallet
  • Moru- Digital Wallet
  • Global Smart
  • Connect IPS
  • eNMB
  • PayPal

These mobile banking apps provide a more convenient and simple way of entry to your existing bank accounts. First and foremost, these apps ask for your card, bank account details. After connecting with the respective banks, they get access to your saved funds. You can now use the banking services from the app on your mobile phone to perform any kind of digital transaction. You can either send or receive money, check your bank credits and keep a record of your payments. This is how the digital payment system works. 

Check out: Top 5 digital payment apps/wallets in Nepal

The mobile banking apps in turn receive a commission from the banks every time people make transactions with the help of it. These apps have been fostered ever since digital payment came into light. No doubt, they have made our works a lot easier. 

However, do you think digital payment comes with only its good aspects? Definitely not. Everything has both its own pros and cons. While digital payment may be very helpful to us, there are some disadvantages to paying your bills online. Let us now shift our focus to the disadvantages of digital payment.

Read more: Namaste Pay; Digital Payment Service Launched by NTC

Digital Payment: Disadvantages

  • While digital payment does make transactions easier, the apps that help you pay will certainly charge some costs. You will have to pay third-party payment service charges.
  • Not all shops are equipped with the facility of online payment. So, it is not possible to perform digital payment in such cases.
  • It might create privacy issues as you will have to share all of your transactions and account details with third-party services.
  • There might sometimes be a case of your account being hacked and your money being misused.


All in all, if you take some safety measures and make transactions carefully, digital payment can make your day-to-day life a lot better and easier. It has made it possible to pay bills without using your wallet and make use of banking services without having to visit the bank. This surely is one of the many boons that the technology and internet have given us. 

So, what do you think about digital payment services worldwide? Have you also been paying with the help of mobile banking apps? Let us know in the comments below.

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