[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?

————-

In order to receive full credit for this assignment, you must first post your own response to the question(s) above by Friday, April 12 at 11:59pm ET. You then must comment meaningfully on at least two classmates’ posts by Sunday, April 14 at 11:59pm ET.

This assignment is worth a total of twenty five (25) points — 15 possible points for your original post, and up to 5 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 1 year ago by Brielle Buckler. Reason: Republish & updated dates
• This topic was modified 1 year ago by Brielle Buckler. Reason: Updated Links

[Jaquille Brian]

The alternative form of payment that I researched is Apple Pay. Apple Pay is a contactless payment service that is available on all IOS devices. It gives the user the ability to add the users credit or debit card number to their device and make payments with a simple tap. Apple Pay is accepted at over 85 percent of US retailors, making it a leading force when it comes to alternative payment options.

The biggest advantages Apple Pay brings to payment options is its quick accessibility.  A simple double tap, tap and your purchase is confirmed. Data shows mobile transactions are as quick, as it takes an average of 29 seconds to complete a transaction compared to 40 seconds when paying with a physical card. As well as consumers may not need to carry their wallet and purses which makes commercial activities more secure.

As far as disadvantages you do have major retailers such as Home Depot and Walmart that do not accept Apple Pay as a form of payment. As well as Apple Pay only being available on IOS devices, this form of payment is not available for use with Android devices.

As a consumer, Apple Pay is heavily involved in my day to day. From my personal experiences I don’t have concerns about the security of using Apple Pay. Recently Apple added an update to their system that allows consumers the option to add a virtual card to their digital wallet that will help give consumers an added layer of security.

[Ajalicia Harper-Greenidge]

Hello Jaquille,

Good job on your response I agree with your advantages of Apple Pay it’s an easy payment option and it is much quicker than having to insert and card a type your PIN into a machine.

[Gabrielle P]

Hi Jaquille – Thanks for sharing more about apple pay. Its so useful! My favorite time to use it is when I’m grocery shopping. It truly creates a seamless checkout experience. No more awkward fumbling trying to put my wallet away while also trying to bag my groceries. How many years do you think it will take for us to become a completely cashless society.

One thing I will miss about using cash is budgeting. I feel like its so much easier to go over your budget when you are just “swiping a card”.

[Nahed M]

Hi Jacquille ,

The alternative form of payment you researched is super common, especially for me. I feel like Apple Pay has made a huge difference, especially like you said it takes as fast as 29 seconds to complete a transaction and I feel like nowadays with everything going on you just want to be in and out of a store especially while checking out. Instead of having to scramble for your wallet and delay more time , with a simple double click you are able to tap and make a payment to complete a transaction. I like how you separated each question and answered them thoroughly. Great job!

[Ajalicia Harper-Greenidge]

1 A type of alternative payment I chose was the value token known as non-fungible tokens(NFTs) they are digital assets that represent real-world objects. People typically trade NFTs for art, video games, music, and designer sneakers.
2 You can receive royalties which are 10% every time it’s sold, the increased marketplace with the buyers, and the transferability of the NFTs being able to trade throughout the digital market
3 The possibility of counterfeiting, fraud, and money laundering
4 yes I do use cash alternative methods I think the biggest concern for me is Zelle and tap only because with Zelle you have to make sure you’re sending the payment to the right number or you don’t get your money back if you send it to someone you wasn’t trying to, therefore, it is a lot to double check if the person isn’t saved into your contacts and the issues I have with tap is sometimes I have my wallet close to the payment machine to the point where it would just go through and I wouldn’t know which card it took the money off of until it shows up on one of my bank’s cards. But in reality, these issues can be quickly solved by me being more aware of what im doing.

[Njie Audate]

Hi Ajalica, It was interesting to read about your research regarding NFTs. The ability to earn royalties sounds enticing which can certainly bring up many opportunities for people. I will say the concerns that you brought up regarding fraud and money laundering highlight the lack of regulations surrounding NFTs. I love how you brought up Zelle as another cash alternative method that you used because I use Zelle quite frequently. Zelle does require accuracy when sending payments so I do make sure to do my due diligence when using Zelle as well.

[Jason Ragland]

Hi Ajalicia,

Great topic choice! In theory, I like the fact that you’re able to collect and own real world objects as digital assets, but all the disadvantages associated with ownership would be red flags if it were anything else. I have not purchased any NFT’s myself personally, however I do know quiet a few people who have spent practically everything that they had on one of these with the hopes of becoming rich overnight. In most cases if not all, the creators and developers hyped these projects up to increase the value and sell what they own as soon as the project drops. There is no real regulation and more often than not you end up with a digital asset that’s worth a fraction of what you paid for it.

[Aramis Ortiz]

1. The alternative form of payment that I researched is called Bitcoin. Bitcoin is digital currency that is decentralized, so any two people, no matter where they are in the world, can send each other bitcoin. You can do this without involving any bank, government, or institution.
2. The advantages of bitcoin are its accessibility, user security, and independence from a central authority. Bitcoins can’t be stolen unless someone has physical access to the owner’s device and send bitcoins to their account. There is also no viable way to implement a Bitcoin taxation system.
3. The disadvantages associated with Bitcoin are its not accepted everywhere and its irreversible. Bitcoin transactions are irreversible and final, so you don’t have much recourse if you send the wrong amount or to the wrong recipient. This can lead to purchase regrets since transactions are unregulated and anonymous.
4. As a consumer, I do use forms of cash alternatives. I have not used Bitcoin; however, I use apple pay regularly. Most purchases I make I use apple pay because of how easy it is to use. I don’t have any concerns about the security of this payment method, as it accepted at over 85% of retailers in the United States. The number of apple pay users reached 55.8 million in 2023.

[Joshua]

Hello Aramis, I don’t know much about Bitcoin, so it’s nice that I learn a thing or two from what you researched. I do know Bitcoin is quite popular, it’s one of the most mentioned forms of crypto currency. The fact that Bitcoin is independent, and doesn’t rely on a central entity is definitely unique. Not to mention the added user security, I can see why many would use Bitcoin as a form of payment or currency. However the accessibility is an issue. If it can only be used in certain places, that takes away from it’s usage to pay for certain services or goods. And the lack of reverse currency conversion, you can’t reverse the conversion of Bitcoin and transactions. Which can lead to regretful decisions and purchases, which is quite common. And unlike other froms of digital currency and payment, you can’t reverse these actions. But then that also brings up the question of, how will Bitcoin’s user features change to accommodate consumers, so that it can continue to compete with it’s other digital currency competitors? Overall I, as a consumer, wouldn’t use Bitcoin. Honestly the deal breaker is you can’t reverse your transactions.

[Njie Audate]

Hi Aramis! I was actually thinking of writing about bitcoin myself but ended up choosing another topic. The information that you gave in your response was very insightful and informative. Bitcoin seems like a very secure form of payment and convenient as well. I saw you mention that you use Apple Pay as an alternative form of payment. I see why you would gravitate towards Apple pay with it’s ease of use and great security features, However It seems that Apple Pay and bitcoin have similar disadvantages. In my response I touched on how Apple pay May not be accepted everywhere (especially overseas) as a valid form of payment simiilar to bitcoin.

[Nahed M]

Hi Aramis ,

It’s pretty cool that you are able to use a form of payment that does not involve a bank government or institution.I like how you explained what bitcoin is in thorough answers. I’ve actually never really looked into bitcoin because of the disadvantages that you mentioned although it is very accessible , in my eyes it seems a tiny bit more complicated since transactions  are final and can’t be fixed if a mistake possibly occurs whereas if you do something with a bank and a mistake occurs, you can contact customer service and most likely get it resolved/get your money back.

[Joshua]

1. SamsungWallet. More specifically, Samsung Pay. This app allows you to store a digital versions of debit and credit cards. Around many establishments, the option to use Samsung Pay, is obviously high. There’s no hassle to carry anything extra around. Everything is in one convenient device, a device which we use essentially everyday.

2. Like mentioned before Samsung Wallet, is a service that allows secure record of card type payments. What’s more, with a tech giant like Samsung. Security is essentially guaranteed. Features like pin verification, offer additional ease of mind. Since technology is so engraved into our daily lives. Finding business and other facilities, that accept this form of digital currency, isn’t hard at all. Nearly everywhere you go, you can pay with your phone, no card needed. The many digital services and businesses we use. Are compatible with tools, like apps (SamsungWallet). That utilize virtual pay and currency.

3. As per the limitations, Samsung Pay doesn’t let you send money to anyone. You aren’t able to transfer funds to close ones and other contacts. Which is odd, as it’s competitors like, Apply Pay, Google Pay, PayPal and others. The ability to send funds to others is available. While you can use your phone to make purchases, that isn’t the case for the web. As Samsung Pay has no web presence, you are limited only to your phone. Again, a feature that it’s counterparts do have. Since the digital security is quite advanced, there is little to no risk of your information leaking, or being exploited.

4. Since I have a Samsung phone, I do use Samsung Pay. If I don’t have any cash on me, however I prefer and are more accustomed to paying with cash. I pay cash essentially 99% of the time. Despite the availability, I rarely use digital forms of payment. So far the application has given me no trouble, my information hasn’t been exposed, and the cards I use are compatible with the app. Overall the security of Samsung Wallet is solidly sustained. I would recommend it as a alternate form of payment.

[Roaa]

Hello Joshua, hope all is well. Thank you for sharing your answer I appreciate it. Although I don’t use Samsung Wallet I use Apple Wallet. To be very honest, I didn’t know much about the Samsung wallet because I assumed that it was the same as the Apple wallet. I didn’t know that you couldn’t send money to someone through a Samsung wallet. We can send money using an Apple wallet, which I use very often. Indeed while replying to your discussion board, I was going to use it.  I wonder why you can’t send any money through Samsung wallet? This is something interesting my opinion to research why. This is something I should consider, since I was thinking of getting a Samsung in the future. Thank you so much for sharing.

 

[Njie Audate]

1. One alternative form of payment that I’m familiar with would be  Apple Pay. Apple Pay is a mobile payment/digital wallet service created by Apple. It allows you to make payments using your Apple devices such as iPhone, Apple Watch iPad, and Macs instead of traditional cash or physical cards. Apple Pay uses near-field communication(NFC) Technology, which allows for secure contactless payments by holding the device near a compatible point of scale terminal. You can add your credit card or debit cards to the Apple Wallet app on your device and make payments using Touch ID, Face ID, or your device password.
2. There are several advantages to using Apple Pay. One of which would be convenience. You’re able to make quick and easy payments with just one tap. Which eliminates the need for carrying a physical card or cash with you all the time. Apple Pay is also quite secure. Apple includes tokenization and biometric authentication when making transactions, this makes it even more secure than traditional payment methods. Furthermore, Apple Pay keeps your privacy intact. It doesn’t store your actual credit card or debit card number on the device. Which is good to know especially if you’re using someone else’s device.
3. Apple Pay is great and all but, there are some potential disadvantages and risks to using such payment. When it comes down to it you need to have an Apple device to use Apple Pay. This limits the accessibility for individuals who don’t have such devices. If you were to encounter a technical issue that could be something that disturbs a payment process going through. Although Apple is widely accepted around the US there are still retailers overseas that may not have Apple Pay available as a form of payment.
4. As a consumer myself who likes convenience, it should be no surprise that I’m accustomed to using Apple Pay. I don’t have much concerns about the security aspect. I use Apple Pay because I think it’s more secure than carrying around cash or cards and gives me more peace of mind.

[Roaa]

Hello, Nije Audate. I hope all is well. the topic you chose is also something that I chose as well. After reading your answer I see that there are things I could’ve added as well. For example, I could’ve gone deeper mentioning what technology Apple Pay uses. I also agree that it helps with convenience as well and as for security, I agree as well. This is also something that I can learn from your answer which is adding what specifically makes Apple Pay secure. Apple Pay is something that I also find convenient for me. Lately, I have been forgetful so I don’t have to take out my card and fear misplacing it. However, I have been put into situations where when there were places that didn’t accept Apple Pay, so I made sure that I at least had my card on me. It indeed has influenced many to get used to not carrying their cards with them. I am fortunate that most places in NYC take Apple Pay for some food carts as well.  I am a consumer of Apple Pay as well as you are and have indeed also been accustomed to using it.

[Aramis Ortiz]

Hi Njie,

I like that you wrote about Apple Pay, as that is a form of virtual currency/ cash alternative that I use regularly. As a user of Apple Pay, I can vouch for you when you say that its convenience is a big advantage. I prefer Apple Pay because I don’t like always having to take out my wallet and risk losing any cards or cash that I have in there. I actually spoke on Apple Pay for my response to the 4th question of this discussion. I agree with you that Apple Pay is secure, as I did some research and  saw that it is accepted at over 85% of retailers in the United States and the number of apple pay users reached 55.8 million in 2023. Like you, I don’t have any concerns about the security of this payment method.

[Robert Birch]

Hello Nije,

I like the points you raise regarding the widespread adoption of apple pay by retailers. I think that during the pandemic, contactless payment methods became widespread as people wanted to minimize contact at the register while shopping in a store. I also think it is very convenient to use apple pay on websites through safari because apple has made 1 click integration one of their top priorities for users of their products.

[Emmalyn]

Hi Njie,

Apple Pay is not a method of payment I use commonly myself, but I do know many others who do so as a result I have Apple Pay so that I can receive or send payments myself for the ease of whoever I’m making the exchange with. For example, my roommate uses Apple Pay to send me her portion of our utility bills. I definitely think Apply Pay and other digital wallets are very convenient for users which is a part of their appeal and popularity. I can also understand how in a physical sense it can potentially be “safer” to have a digital wallet over a physical one with cards or cash. I personally am not a fan of Touch ID or Face ID on devices because I do not believe them to be so secure although I also understand the appeal of those forms of security is similarly a kind of convenience it provides the user.

[Roaa]

The alternative payment I chose to use is Apple Pay, which is used a lot in this day and age. this is a wallet you can have on your phone that helps you pay for what you need. When you go to stores you can just tap your phone with the card in your wallet and then you can find that the payment went through. in this case, you won’t have to pay with cash or even your physical card. The advantages of Apple Pay are that it is a lot easier and you don’t have to worry about losing your card or your cash. However, the con is that if you lost your phone and someone was able to get into it then they can take your card as well and lose it. If something were to happen to your phone then you won’t be able to make any purchases unless you have any cash lying around and if you have your physical card lying around as well.  I am a consumer of Apple Pay not just for convenience but lately I have been forgetting my things a lot. This helps me a lot and has saved in in dire situations. I am genuinely grateful that this was something that was invented.

[Joshua]

Hello Roaa, I know Apple Pay mainly because everyone I know uses iPhone. However I don’t use iPhone, I use Samsung. I know shocker. Anyway, with the popularity of iPhone, it’s clear that Apple Pay is used over physical debit and credit cards. Like you mentioned you have all your go to forms of payment in one place. That saves a ton of trouble for anyone that tends to make frequent purchases. And with connected we are in our everyone day lives. Finding places that accept Apple Pay is simple. Almost all businesses and services accept it as form of payment. The issue with most apps like Apple Pay is. Everything is in one place, and if someone were to gain access to your phone. It’s pretty much over, your funds and currency will fall into the hands of another. And phones aren’t the most secure devices in the world. So that can be a little concerning, and warrants users to take extra precautionary measures. But then I have a question, how will Apple ensure that it’s devices are properly secure, so that they aren’t hacked or accessed by third parties to steal information in apps like Apple Pay? Like I mentioned before, I use Samsung. So I wouldn’t use Apple Pay. Not because I don’t want to, but because I can’t. So I can’t necessarily give firsthand feedback about the app’s performance.

[Irina N]

I completely agree with you regarding Apple Pay as a means to purchase things. The introduction of technology has really made life easier for us particularly in terms of money management. Also, I lik the fact that it is secure and simple to use Apple Pay especially if I ever forget my wallet. Undoubtedly, any digital transaction has its downsides including the possible unauthorized access by someone if your phone lands into wrong hands like theft or misplacement. However, on a balance of health, the benefits of using Apple Pay surpass its drawbacks. Definitely, it has saved me a number of times from many such situations. I admire how convenient this payment option can be in today’s fast-paced world!!!! I loved reading your response <3

• This reply was modified 11 months, 3 weeks ago by Irina N.

[Gabrielle P]

Hi Roaa – One of the security features paying digitally gives you is augmenting your card number with each transaction. With all the articles and stories of skimmers being at checkouts, mta metro card machines, banks, e.t.c. This is a very useful feature. All in all I agree with you. There are pros and cons to digital wallets.

[Jason Ragland]

The alternative form of payment that I chose to do my research on is called XRP. XRP is a cryptocurrency and token by Ripple Labs that runs on the XRP Ledger. XRP can be used as a store of value, but was designed to replace SWIFT(Society for Worldwide Interbank Financial Telecommunication) by facilitating faster and more efficient cross-border payments without the need for intermediaries. SWIFT is a Belgium banking member owned cooperative that powers most of the international money and security transfers. Chase for example, takes 3-5 business days to process SWIFT payments on average, charges a $45 transfer fee, and has 5-7% exchange rate mark-up.

There are several advantages to using XRP to facilitate transactions. XRP charges a lower fee to settle payments. The standard fee to conduct transactions on Ripple is 0.00001 XRP, which equates to 0.0000054 USD. XRP is also used as bridge currency This allows the transfer of value between different currencies and the conversion of one currency to another without the need of intermediaries. XRP cross-border transactions also settle in seconds rather than days.

XRP transactions are irreversible, which means that a transaction made using XRP cannot be reversed or disputed by the consumer. On the other hand, this is an added benefit to merchants who want to avoid the risk of chargebacks by consumers. Large quantities of XRP are currently being held in escrow and are currently not in circulation. This can greatly impact the value of XRP in a negative way if that supply being held in escrow is released at an unfavorable time.

As a consumer, I do use alternative forms of payment but cash is still my favorite way to pay. Although I own an I-phone, I don’t find myself using ApplePay as often as most do. I like having ApplePay as an convenient option, but I’m also not a big fan of giving another company access to my financial data. Virtual Credit Cards are what I use to make may online purchase. I like the benefit of them being disposable because I don’t feel safe entering any of my card information on websites for obvious reason.

[Nahed M]

1) The alternative form of payment that I chose is Klarna. Klarna is a Swedish Fintech company that provides online financial services , it was founded in 2005 this form of payment allows you to be in control of how you want to pay every time you shop. There slogan is “Buy now pay later” so when you are checking out for most websites online there is the option to put it on Klarna. With this you are able to Pay now, Pay in 4 interest-free payments, Pay in 30 days, or Pay over time. A credit check is performed when paying in 4 , paying in 30 days or monthly financing. You are able to use this via the Klarna app or on most websites that have this option at checkout.
2) The advantages of using Klarna is you have the option of forming a payment plan, where you are able to buy what you want at the moment, and just pay for it later, instead of paying for it all at once, so essentially a credit card. when you choose the option to pay in four or within 30 days, there are no fees and no interest. Another good thing about using Klarna is there a huge number of brands and retailers who accept Klarna as a form of payment so for many of the items that you would love to buy, and don’t want to pay at the moment you can, with Klarna. Lastly it only performs a soft credit check. It’s nothing intense and for the most part you get accepted to be able to use it if you have positive, credit history.

3)While there are many advantages there are a huge amount of disadvantages when using Klarna. although Klarna only performs a soft credit check, if you start to miss payments and fall behind on multiple things, you have put on Klarna late fees begin to be charged, and it might negatively affects your credit, score. another thing is a lot of people don’t think about keeping their financial situation safe. For example, when you’re buying something and you’re putting it on Klarna because you want it but you know you can’t afford it now or probably a few weeks from now then it is not a need and eventually will catch up to you. You wouldn’t want yourself in the future to be in a huge amount of debt only because of a bow pay later method it definitely encourages, risky, financial behavior. Like George Kamel said in his article “The Truth About Klarna” step away from that, by now, but in real quick, and hear me out on this buying now, and paying later, is a good way to be broke now and later. It is a trusted company but is it not safe for your wallet. Klarna isn’t going to help you get rich and get more money , in fact after you have to worry about where that money is going to come from later.

4) As a consumer, I can say that the most alternative form of payment that I use is Apple Pay, and I have no concerns about security with Apple Pay actually feel that having it in my Apple wallet, and just tapping to pay, helps me with many things rather than having to dig and take out my wallet especially in the world where there are a lot of people who snatch things. I definitely agree that more people carry less cash nowadays, and use forms of payments that are alternatives , for example for me, I don’t carry cash around a lot like that and I rarely ever really take out my car to insert it if I do then I’m tapping my card or tapping Apple Pay especially when I’m riding the empty using Omny. But further alternative form of payment that I spoke about which is Klarna I’ve never use it, and I never will use it because of the many reasons I listed under disadvantages, but some people use it and are happy with it. And although it’s similar to a credit card, it’s not 100% like a credit card because with a credit card the purchases you make help increase your credit score for the most part especially if you do pay on time and keep up with them help with building, credit.

[Aramis Ortiz]

Hi Nahed,

I have actually never heard of Klarna, so it was interesting learning a little bit about from what you wrote. It seems like there is a big advantage when using Klarna because you can split your payments up and finish paying it in the future. However, for it to be a true advantage you must be responsible with your money because as you mentioned, if you miss payments then your credit score can drop. You did a great job explaining the pros and cons of this alternative form of payment. I also use Apple Pay regularly and I agree with the statement that there should be no security concerns when using this form of virtual currency. It is very convenient and helps keep everything in your wallet secure because you don’t need to risk losing any cash or cards in your wallet.

[Jason Ragland]

Hi Nahed,

That was a very detailed and informative post on Klarna. I personally have never used any of these services myself, but it seems like almost every website has partnered with Klarna or a competitor who offers similar services to their customers. I can see how being able to receive an item now and delaying payment to the future might seem like a very attractive option to some, but this option is only favorable to the consumer if they make the agreed payments on-time. After reading your post I was curious about two things. How do these companies make any profit charging $0 interest in most cases? Who is the target audience?

According to the article “Who Uses Buy Now, Pay later” these companies target “Individuals who previously had a credit card application rejected, was delinquent on a loan payment over the past year, and/or have a credit score below 620”. These group of individuals are more likely to be offered this payment option at checkout. After reading a few articles on Klarna including “The Truth About Klarna” that you referenced above, I’ve concluded that these companies are marketing themselves as a care-free alternative form of payment while at the same time banking on the consumer not being able to make your payment.

https://libertystreeteconomics.newyorkfed.org/2023/09/who-uses-buy-now-pay-later/

 

[Irina N]

Your comparison of Klarna and Apple Pay was very insightful. I liked getting to know the unique benefits of both payment methods. I totally agree with you that Klarna’s “buy now, pay later” feature presents an incredible flexibility in managing finance though it is necessary as aforementioned to consider its drawbacks like late fees for instance.Personally, I am more inclined towards Apple Pay because it is convenient and highly secure. This makes me prefer it since transactions are smooth and can easily be done on various platforms within the apple ecosystem.What is intriguing here is how different factors appeal to everyone when choosing a method of payment. Loved your response!! Enjoy it alot <3

[Emmalyn]

Hi Nahed,

I had no idea that Klarna has been around for so long! I agree there’s some advantages with BNPL companies only performing “soft-credit” checks, however, if payments are not kept up with they take a severe hit to you and that’s often where these companies end up making their money. I think BNPL can be helpful with certain purchases (I’ve used them myself), however, for me it’s always something I very intentionally budget for in my expenses. If that were not the case, I can very much see how people would be caught up in the idea of not having to think about the expense of the purchase and would forget about it, and thus get hit with late fees and such. I always think of BNPL as a lay-a-way with a face-lift.

[Irina N]

1. Instead of cash, I looked into digital currencies as a medium through which to pay. Bitcoin and Ethereum is a complete digital decentralised kind of virtual money. In this case, these forms of currency are secured by use of blockchain technology that ensuress the safety of transactions and guarantees honesty within the system. Digital currencies can be bought, sold or sent online through the internet.

2 . They allow for faster transfer rates than traditional bank systems, have low charges in comparison to normal banks transaction and offer greater anonymity since all transactions occur under pseudonyms, besides they can be accessed by those who cannot access traditional banking services. Moreover, they provide an effective tool against inflation while enabling global transactions without any need for conversion between currencies.
3. However, there are also drawbacks or dangers associated with digital currencies such as fluctuating costs, regulation uncertainty hacking risks, customer protection absence, irreversibility after completion of transfers. as well as the fact that it allows users involved in such business to keep their identities hidden and engage in illegal activities.
4. I am a consumer who uses digital payment alternatives such as mobile payment apps and online banking servicesI am worried about the security of these methods, particularly in relation to the chances of identity theft or fraud. To address these risks, I use strong, distinct passwords for my accounts, enable two-step verification whenever it is available, always check my transactions for any indications of unauthorized access and just engage with trustworthy and secure platforms.

• This reply was modified 11 months, 3 weeks ago by Irina N.

[Ajalicia Harper-Greenidge]

Hello Irina

Great job on your response and  I agree having strong and affective passwords are good ways to ensure the security on banking accounts it provides safety and reinsurance that everything is going fine also checking the accounts helps know what transactions are being placed.

[Stephanie Garcia]

An alternative form of payment I use is Apple Pay, which makes is easier to make purchases nowadays because its a digital wallet so you don’t have to waste time to find your card. Apple Pay makes it easier by just tapping your phone on the screen to pay for your purchases. I personally prefer to use it because I hate carrying cash and also digging in my purse to find my card. This makes it 10 times easier for me.

Some advantages of using Apple Pay is Apple Pay allows you to make easy, secure, and private transactions in stores, apps and also online. You can also send money easily to people through Apple Pay, not having to use bank account to send money you can simply just use Apple Cash. Its also safer than using an actual credit or debit card.

Some disadvantages I researched about using Apple Pay is that there can be a potential for fraudulent contactless charges. Apple Pay only works on Apple devices, so we can send money to other apple devices that use Apple Pay. Another disadvantage is that Apple Pay is not universally accepted.

I tend to use Apple Pay the most as a cash alternative because it is easier and more convenient for me, also to send money to other people which is better for me than using Zelle or PayPal.

• This reply was modified 11 months, 3 weeks ago by Stephanie Garcia.
• This reply was modified 11 months, 3 weeks ago by Stephanie Garcia.

[Robert Birch]

Hello Stephanie, I agree that apple pay is the most convenient way to make purchases. Because Apple Pay is natively supported and integrated through the Apple software, it is much easier to use then other alternatives such as Venmo or Zelle which both require navigating to the app itself. I think Apple does this on purpose to make their payment service more convenient and thus attractive to Iphone owners.

[Robert Birch]

1. Apple Pay is a digital wallet platform that supports card payment through your phone. It allows Apple phone owners to make payments using Apple devices like iPhones, iPads, and Apple Watches. Instead of using physical cash or credit cards, users add their credit or debit cards to the wallet app and can then use them to make payments in stores that support Near Field Communication (NFC) technology.

2. As someone who uses it regularly, here are some advantages of using Apple Pay:

Convenience: Users can complete payments quickly without the need to carry physical cash or credit cards.

Security: Apple Pay uses security features such as unique transaction codes and facial ID to protect users’ payment information and prevent fraud.

Commonly accepted: Apple Pay is supported at millions of stores, restaurants, and other retailers worldwide, as well as digitally through countless apps and websites.

3: Disadvantages of Apple Pay are mostly agreed upon as the following:

Dependence on technology: If your Apple device battery dies or malfunctions, sometimes you will not be able to make payments when necessary

Potential for technical glitches: Like any technology, Apple Pay may experience occasional technical issues or server outages that could disrupt payment processing

[Emmalyn]

Briefly explain briefly the alternative form of payment that you researched and how it works as an alternative to traditional cash.
What are the advantages of this form of payment?
Are there disadvantages or risks associated with the form of payment that you researched?
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?

I researched a digital wallet; there are three kinds of digital wallets, a pass-through, a staged digital wallet and a stored value.
– Pass-through digital wallets are mobile phone-based in-store transactions (i.e. “tap to pay”) where the physical card’s information is being used even though it’s not physically present, and the card’s information is digitally stored for use.
– A stored value digital wallet functions similarly to a pass-through wallet, however, the card is pre-loaded with an amount that can be selected by the user using other card/banking information. A commonly used form of this payment method is Venmo.
– A staged digital wallet is the go-between for purchasers and merchants, where it first accesses the money from the purchaser’s method of payment (bank account or card network) and then gives the payment to the business/goods/service. Common staged digital wallets that are used are PayPal, Square Cash, and Google Wallet.

The advantages for a digital wallet is the ease of use since users would not have to carry a physical wallet around and can instead use a digital wallet on your cell phone, and this can eliminate the worry of losing or forgetting your wallet. On the flip side, if you somehow lose your cell phone which houses these digital wallets, then there is the potential for the information getting stolen that way. Additionally, there are sometimes errors within the networks and double charges can occur, and at worst breaches of security within these digital wallet providers can happen. Another downside would be that there are some businesses that do not have payment systems which accept digital wallets, and they are either cash only or require a physical card for purchases to be made.

The kinds of cash alternatives I use are BNPL (Affirm and Klarna), and digital wallets. I do not have much concern with the security of these payments other than the general greater worry of information being stolen or leaked, in which case typically these companies notify users. I do my best to have multiple passwords for one login-system if it’s allowed and do not have things such as Face ID on for my digital wallets.

[Author]

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