[Brielle Buckler]

Quick—how much cash do you have on you right now? Check your wallet, purse, and pockets, and see what you have. Do you have enough to make change for a twenty-dollar bill? Not so long ago, you could ask a roomful of people that question, and most folks would have the cash on hand to make change. These days, it’s less common. Think about the last five or six purchases you made. Did you pay with cash? Chances are good that you used a debit card or a credit card instead. Consider the possibility that someday debit and credit cards will disappear, too.

Technology has had a profound impact on our view of the necessity of cash. As we move towards a “cashless” society, the banking system is also challenged to adapt its processes and the services it provides.

Go beyond what you learned in the course module, and research some of the forms of “virtual currency” or cash alternatives that are currently available to consumers. Some of these include digital currencies, EFT, ACH transactions, iPay, Google Wallet, ePayments, direct draft.

For this discussion, first answer the following questions, and then respond meaningfully to at least two of your classmates’ posts.

1. Briefly explain briefly the alternative form of payment that you researched and how it works as an alternative to traditional cash.
2. What are the advantages of this form of payment?
3. Are there disadvantages or risks associated with the form of payment that you researched?
4. As a consumer yourself, do you use any forms of cash alternatives? Which ones? Do you have concerns about the security of this payment method, and if so, what can you do to mitigate these?

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In order to receive full credit for this assignment, all components of this assignment are due by 11:59pm ET on Sunday, February 26, 2023. You should first contribute a thoughtful post of your own before viewing/commenting on the posts of others. You must respond meaningfully to at least two classmates to receive full credit for this assignment.

This assignment is worth a total of ten (10) points — 6 possible points for your original post, and up to 2 points for each of the two responses to your classmates’ posts. Please reference our Discussion Rubric for more information, and to this guide from MSSU to learn more about what it means to respond meaningfully to a classmates’ post.

Source: Lumen Learning

• This topic was modified 2 years, 3 months ago by Brielle Buckler. Reason: Republish
• This topic was modified 2 years, 3 months ago by Brielle Buckler.

[Randy Marte]

Cash alternatives have become increasingly popular, offering a variety of options for consumers. One such option is virtual currency, which operates on a decentralized network and allows for peer-to-peer transactions without intermediaries like banks. Bitcoin and Ethereum are examples of virtual currencies, and they offer secure and private transactions. However, virtual currency is also vulnerable to volatility, fraud, and illegal activities, which can make it risky for consumers.

Another popular option is mobile payment systems, such as Apple Pay, Chase, and Capital One’s mobile apps. These systems allow users to make transactions through their mobile devices, providing convenience and speed. Mobile payment systems link to bank accounts or credit cards, making it easier to make transactions without physical cash or cards. However, users must be aware of security risks, such as fraud and hacking, that are associated with mobile payment systems.

As a consumer, I use mobile payment systems for their convenience and speed, but I am also cautious about their security risks. To mitigate these risks, I check my financial statements regularly and avoid using public Wi-Fi when making transactions. Whether you choose virtual currency or mobile payment systems, it is important to weigh the advantages and disadvantages and take necessary precautions to protect yourself.

[Emely Gutierrez]

i think it’s so important to check your financial statements after use. You really can’t trust anyone with anything. It’s like everyday it’s a new thing people come up with to take your information

[Nickos]

Hi Randy,

I agree with your assessment of virtual currencies, I have dabbled with bitcoin and ETH because the decentralized aspect of it. The votalitity is a bit alarming and I haven’t used it much, but I think it is a great and innovative alternative.

The tip you mentioned to avoid using public Wi-Fi is really spot on, I’ve also turned off my Wi-Fi when I go out in public to ensure that my transactions are secure.

[Alyssa Apperson]

According to Investopedia.com, a virtual currency is a digital representation of value only available in electronic form. A type of virtual currency is called Ethereum (ETH). The goal behind Ethereum is to create a platform that can be accessed by anyone and anywhere in the world. This is especially important as some live without state infrastructure and identification. These people can open an account with Ethereum. In reading a bit about it, it is beyond confusing. I actually feel a strong disadvantage towards it due to the lack of simplicity in finding digestible information around the subject.

As a consumer, 9 out of 10 times I use Apple Pay. It’s so convenient and quick. I very rarely have cash on me but even when I do, I find that when paying in cash, the change is often inconvenient and a chore to put away (to be dramatic). I only ever pull out my debit or credit card if a merchant’s Apple Pay isn’t working. Otherwise, Apple Pay is my default.

[Emely Gutierrez]

Totally agree!! Apply pay is my holy grail for everything. I get told it’s toxic because you keep using it for everything and spending money!!!!! But it’s like the best invention I feel. So easy and fast when your in a rush and not have to take out your personal wallet in public!

[Raphi Munoz]

cash is assets; cash bring value toward people to exchange to goods. cash is more better to navigate with in people interset on buying goods. having cash you can negotiate salaries to lower the price. the salary see you have the money in hand so, the salary will accept the offer. The reason why the salary accept the cash because cash is king. cash is king, cash can’t be trace. you buy with debit card it could taking  a long time to get the money too. credit it take a long time too. people want money quickly so, they rather get cash now than getting money later. I do carry only 20 dollar with me when I trying to buy food. cash can be risky too. you loss your cash without knowing you lost it. when you get rob and your whole saving on your pocket is in cash you will be broke because your money is gone. many disadvantages on having cash. debit; you can loss your money too; because you think your money its save in a bank provider don’t mean your money will not be gone. banks can fall down; like  bankruptcy. bank can be on a bankruptcy and your whole money can be gone. debit card swapping scam you have to be careful; there’s swapping machine that have debit/credit card scanner to copy your debit/credit card and you being charged for items that you never bought. credit card is bad too. you need to be careful with them credit card bank make money out of credit card. you will be paying for interest rate on a item you bought. image you bought a sneaker for 200 dollar with the credit card every mouth; banks will say, you have to pay minimum payment end of the mouths, include with interest rate.

[Emely Gutierrez]

Virtual currency is a digital representation of value only available in electronic form. It is stored and transacted through designated software, mobile or computer applications. They are issued by private parties or groups of developers and are mostly unregulated.

According to Kaspersky , cryptocurrency payments exist purely as digital entries  to an online database describing specific transactions.

An advantage of this form is technology rails of virtual currencies increase transaction speeds.

A disadvantage is virtual currencies are attractive targets for hackers. There have been several cases of hacking blockchain networks for cryptocurrencies, a form of virtual currency. According to Investopedia.

For me, I literally use Apply Pay for everything !!! When I say everything, I mean everything. It’s very rare if I have cash on me. Nowadays everything is so fast paced that in a way there’s no time to spend taking cash out. Especially now that you can easily add everything to your phone now. The best invention but also toxic.  Because you can overly spend without realizing it. Also there’s so many scams and people scamming cards. It’s happening so much more often. Like people are coming up with the craziest things to take people’s identity.

[Nickos]

I decided to research Apple Pay since I use it so often in my daily life. Apple Pay is a contactless payment option that works across all Apple device such as iPhones, Apple Watch, and iPads. It can be easily set up in your device by entering in your card or bank information. It uses Near Field Communication (NFC) technology between the device and the payment terminal. This is an industry standard, contactless technology that is designed to work only across short distances. If your device detects and NFC field, it will present you with your card options and you can authenticate the payment using Face ID, Touch ID, or your passcode. Your payment, once authorized by you, is secure and encrypted through your device.

Advantages of Apple Pay:
– It has a tokenized backend infrastructure, this means it makes all the transactions secure by creating a number/token that will replace your card details. This number is assigned, encrypted, and securely stored in your iPhone or Apple Watch so when you make a transaction, only the token/number is passed to retailer/merchant. Because of this, the retailer/merchant will never have direct access to your card details. For online orders it will share information such as billing address, but again your card information is safe and secure.
– Over 85% of retailers in the US accept Apple Pay including grocery stores, gas stations, restaurants, coffeeshops, subway stations, taxis, and so much more. Apple Pay works anywhere that accepts contactless payments and with the recent shift to this due to COVID, many retailers have started implementing it for safer shopping.
– Due to its touchless nature, it will help you avoid touching buttons or terminals, handling cards, or exchanging cash. This will prevent spreading of germs and help keep your hands clean.
– You can easily send money to friends and family, it works similarly to PayPal and Venmo. It makes it easy by sending it through the messages app to those that also have ApplePay on their devices.

Disadvantages of Apple Pay:
– Though it is know for its ultra secure transaction handling, this can often times be vulnerable to cyber attacks when you device is connected to public Wi-Fi. Public networks are often targeted by hackers and can lead to serious security breaches. However – if you turn off your default “connect to public WiFi” setting, you should be safe from these issues.
– There is significant personal data collection from Apple with your transactions. Though Apple is not sharing your information or shopping data with retailers, it does utilize it for marketing purposes (targeted ads, etc).

 

I personally love using Apple Pay. I find it convenient to simply tap my phone and go on my way whether it is at the subway terminal, bus terminals, restaurants, or grocery stores. I don’t have to fumble for my wallet – and often times I forget to even bring my wallet! I appreciate the security element that Apple utilizes, having all my transactions encrypted and securely hidden is reassuring for me and one less thing I have to worry about. The personal data and tracking aspect of it is a bit alarming, but in truth, I know that my personal data is monitored across various apps such as Instagram, TikTok, etc . . . it is a trade off to convenience I suppose!

[Osman Goni Rifat]

That’s a great discussion on Apple pay. The best thing about apple pay is that they don’t share your card info with retailers what it does it it masks your information and use that instead. This so creative and secure move by Apple.

[Justin]

<span class=”s1″>Virtual currency is being used more now and has been used in all businesses to receive money. Apple Pay is a new form of paying with the debit card. You can have a mobile card and an actual card. It’s a substitute for cash and is taken by almost all stores now. It is an extra place to save and transfer money between peers.The advantages include instantly transferring money back and forth and not having to pay a fee to send or receive money from another apple pay user. The apple pay do contain risk as it will have access to some information especially if it is linked to a card. It uses NFC Technology as well. To add on, when linked to a card transferring money can be a problem because of the fee for instant transfers. I actually use apple pay . I am not worried because I have been a customer of apple for quite a while. Most of the information that is required by apple pay is most likely in the apple system already. Also, this has been a very helpful way to send money fast to people. I feel that it is convenient because the amount of people with apple devices are increasing at a high rate and have been for a while. Most people do have apple products so I can have that option more than likely.</span>

[Justin]

I definitely agree that apple pay has been very useful and quick to use. It also is a relief that my information isn’t being shared with stores just a quick pay. This was a great way to make sure people are secure and it was a very thoughtful decision by the company.

[Roshanna Young]

Hi, Nickos

I as well love Apple Pay, thank you so much for informing us all about how to avoid the disadvantages of it. Now I have something to take with me from this discussion.

[Juana Bazan]

Hi Nickos,

 

Great Job at breaking down the advantages and disadvantages of Apple Pay. This post has been very informative. I myself use Apple pay for most of my transactions.

[Shomari]

I always had a concern about Apple Pay if I ever get hack how will I be able to protect my information, also using my data to sell to other companies to promote certain products doesn’t really sit well with me at all

[Osman Goni Rifat]

Virtual currency is turning into next alternative of cash. There are many form of this virtual currency such as; Bitcoin, ETH, Dogecoin, Stock etc. These are like cash value in electronic form. I will briefly discuss about Stock here. I’ve seen many people invest on Stock and it has become one of the biggest alternative cash. Most of the people already know about this market . It is like you invest on companies and as they grow you get profit out of your invest. People investing millions of dollars into this market. It has become so easy that people can use simply using mobile applications. Robinhood app is really popular for who invest in stock. I believe in coming years this market will grow in huge margin.

People earning a lot on stock market and losing as well. There’s always ups and downs on this market. Sometime you will not earn anything but lose everything. Someone has to be very careful and decisive when it comes to stock market. On this market you will be you’ll be doing transactions with big companies so the chance of fraud is basically zero. And if you decide to withdraw you investment you can easily do that. All kind of transactions are electronic and could be done by using card.

The only disadvantage is the risk of losing money. There’s always a risk of losing money on stock market. I have seen people investing 10 grand and ended up getting less than a thousand dollar. In order to be successful someone has to be knowledgeable about stock market and companies that are doing good on the market.

As a consumer, as a payment method, I mostly use Apple Pay. I didn’t know payment would be this much easier before using Apple Pay. This is so easy and convenient to use. Unlock the phone tap on reader that’s it. It’s so fun and satisfying I purchased a lot just to use apple pay. I know that’s so dumb. When it comes to security , I’m quite comfortable the way Apple pay operates. It uses FaceID, TouchID for authentication.

• This reply was modified 2 years, 2 months ago by Osman Goni Rifat.

[Roshanna Young]

Hi, Osman

I can agree Apple pay makes me feel more secure, rather than other formal payment methods such as card and cash.

[Shomari]

I do agree that Apple Pay has a great security feature to protect you card information, and its fun to use instead always having to pull out more card to use and enter my pin number, I just tap and go.

[Roshanna Young]

A popular alternative form of payment that I have researched is “Apple Pay”. Apple Pay is a digital contactless form of payment, it can be used in stores and online. All you have to do is put your card information on to the wallet app on your phone and you are able to tap to pay when making purchases.

Advantages of Apple pay are that it is faster, easier. and safer to use.
Disadvantages if Apple pay can be that all vendors don’t accept it,so before you leave your home with out your wallet it is good to research if where ever you are going accepts it.
As a consumer myself I as well use apple pay as a alternative payment. It’s faster than putting my card in a machine, or taking it out of my purse. It also has came in handy for the times that I have misplaces one of my cards. In my experience so far I have had no concerns about the security of this payment method.

[Keanu Soto]

Roshanna,

Thanks for sharing this information about Apple Pay. I have recently begun using this more in my daily life and find it extremely useful. I understand that not vendors accept that form of payment, but luckily I haven’t had any issues here in NYC. I wish that the MTA card was on Apple Pay!

[Adrian Forrester]

I agree that mobile payment apps such as Google Wallet are a convenient and secure alternative to cash. The ability to make payments without having to carry physical cash or cards is a great convenience, and the added security features such as fingerprint or facial recognition make it difficult for others to access your account. However, as you mentioned, there is always the risk of cyber attacks or theft, so it is important to take precautions such as regularly monitoring your account activity and setting up two-factor authentication.

[Keanu Soto]

The alternative form of payment that I researched was Klarna. Klarna is a financial company that has increased in popularity since 2012. Klarna allows you to shop at an increasing amount of merchants and retailers by fronting the cost of your purchase and splitting the total into 4 payments. The advantages of this form of payment is that it allows consumers access to goods, while allowing you to split your purchase into smaller payments. One other advantage is that, unlike credit, Klarna does not charge interest rates on any purchases. There are many risks and disadvantages to this form of payment. Much like credit cards, it is very east to spend more than one can afford. There are still a lot of concerns that payment methods like Klarna is creating uneccessery debt for consumers. As a consumer myself and I use a lot of cas alternatives, including the one above. I do not have any safety concerns regarding this alternative as much as I’m worried about my own shopping habits.

[Adrian Forrester]

One alternative form of payment that I researched is digital currencies, such as Bitcoin. Digital currencies are decentralized, meaning that they are not issued by a central authority like a government or a financial institution. Instead, they use encryption techniques to regulate the generation of units of currency and verify the transfer of funds.

The advantages of digital currencies include increased privacy, lower transaction fees, and the ability to make cross-border payments without the need for currency conversion. Additionally, since digital currencies are not issued by a central authority, they are immune to government or financial institution manipulation.

However, there are also disadvantages and risks associated with digital currencies. The value of digital currencies can be volatile, and they are not widely accepted as a form of payment yet. Additionally, since they are decentralized, they can be difficult to regulate, which can make them attractive to criminals for money laundering and other illegal activities.

As a consumer myself, I have used digital currencies in the past, but I prefer to use more established cash alternatives such as credit cards and mobile payment apps. I am concerned about the security of digital currencies, as there have been instances of hacking and theft. To mitigate this risk, I would recommend keeping digital currencies in secure wallets and only using reputable exchanges for transactions.

[Taylen Johnson]

Afterpay was the alternative payment method I looked into. Since 2014, the financial firm Afterpay has grown in popularity. By fronting the cost of your purchase and dividing the total into 4 payments, it enables you to shop at an expanding number of merchants and shops. The benefits of using this payment method are that it gives customers access to products while enabling them to break up their purchases into smaller installments. Another advantage is that Afterpay does not impose interest charges on purchases, unlike credit. The risks and drawbacks of this payment method are numerous. It is simple to spend more money than one has available, similar to how credit cards work.But there are still many worries that payment options like Afterpay are pushing people into needless debt.

[Justin]

I feel like this is a very important way of virtual currency basically being used as payment methods and lay away. This was an interesting one to bring up because they have expanded the way people can pay virtually now.Yes I agree after pay can definitely lead to debt for some people who may not be able to pay in the future . However, it can also help them as well to be able to make short payments.

[Justin]

<p class=”p1″><span class=”s1″>Virtual currency is being used more now and has been used in all businesses to receive money. Apple Pay is a new form of paying with the debit card. You can have a mobile card and an actual card. It’s a substitute for cash and is taken by almost all stores now. It is an extra place to save and transfer money between peers.The advantages include instantly transferring money back and forth and not having to pay a fee to send or receive money from another apple pay user. The apple pay do contain risk as it will have access to some information especially if it is linked to a card. It uses NFC Technology as well. To add on, when linked to a card transferring money can be a problem because of the fee for instant transfers. I actually use apple pay . I am not worried because I have been a customer of apple for quite a while. Most of the information that is required by apple pay is most likely in the apple system already. Also, this has been a very helpful way to send money fast to people. I feel that it is convenient because the amount of people with apple devices are increasing at a high rate and have been for a while. Most people do have apple products so I can have that option more than likely.</span></p>

[Tenzin Lhamo]

1. The alternative form of payment I researched that works as an alternative to traditional cash is money transfer apps such as paypal, venmo, zelle, apple pay, etc. Some of the many advantages to this form of payment are: greater convenience (immediate transfers when sending across borders and available mostly everywhere in todays time), better affordability (avoiding transaction/ exchange fees), good security, paperless (avoid in person paperwork).
2. One of the major risks associated with this form of payment could be that if buyers aren’t careful they might get duped into purchasing a good/service and the seller not fulfilling their order but instead maybe deleting their account and fleeing. However, I still feel buyers can avoid those situations if they are a little more careful by checking/verifying the sellers’ reviews/history.
3. As a consumer I use these forms of payments on a day to day basis from transportation to shopping to sending money, etc. I even use zelle quite often when purchasing food from halal/taco trucks because more often than not these days they prefer to avoid transaction fees from credit/debit cards and even have their zelle numbers up on display on their stands.

[Juana Bazan]

I checked my wallet and could only find a few dollar bills and some cents from the change I had been collecting. I do not have enough to change a twenty-dollar bill. I can’t remember when was the last time I paid with cash, on my most recent five or six purchases I have used my apple pay.

An alternative form of payment that our “cashless society” mobile payment systems, such as Apple Pay, Ipay, google wallet, etc. These alternatives allow users to make transactions right through their mobile devices. Giving people the convenience to purchase anything from groceries, clothing, hotel reservation, flights, food, metro cards, and gas through just one tap. Mobile payment systems link to bank accounts or credit cards, making it easier to make transactions without physical cash or cards. This alternative can also increase the risk of fraud and hacking, which is associated with mobile payment systems.

As a consumer myself I am constantly using this alternative to purchase anything. It is very convenient to be able to add all my credit and debit cards to my phone. I do not have to worry about being short on cash. However, this can also be an open door to overspending. I am very cautious about the security risk. To mitigate these risks I avoid saving my card details or setting any automatic payment especially if I am using a public network.

• This reply was modified 2 years, 1 month ago by Juana Bazan.

[Shomari]

The virtual currency that I want to discuss is Apple Pay. Apple Pay is a payment method that you can use to buy products with your Apple phone when you link your debit or credit card to the program. There are many advantages  of using apple pay, you don’t have to carry you wallet around since you got your payment method on your phone. You also don’t need to worry about damages on your debit/credit card since you are paying virtually. No more trips to the bank so you can take out cash when you can pay for anything with the tap of your phone. The disadvatage of having apple pay is that if you lose your phone you lost your wallet and viable information which can put your finances at risk. If your phone battery dies you have no access to your money. You also have tendacies to over spend since it feels like you are not using your actual money but the money is coming straight out of your account once you tap you phone to buy something. The problems that I have concern when using apple pay is security. If my phone gets hack or if someone takes my phone, there is no way I can be quick enough to cancel cards in time.

[Nickos]

Hi Syed,

One of my favorite things about Bitcoin is its anonymity. It’s great for those who want to make purchases without their data being tracked and sold. I also appreciate the decentralization of it – no single person or group has control & all user collectively regain control. I know some folks argue that this can lead to issue such as illegal and criminal activity with purchases, I feel that the Bitcoin space is lacking in the prevention of those aspects.

[Keanu Soto]

Hello Syed,

I haven’t come accross many people who use Bitcoin. I have always had some questions about the way it works and you did a great job of explaining, so thank you. I knew for the most part that the value of it was always changing. Do you find that difficult to deal with as someone who uses Bitcoin?

[Juana Bazan]

Hi Syed,

 

Thank you for breaking down how bitcoin works. This was very helpful to understand another alternative form of payment.

[Author]

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