1.

DIGITAL PAYMENT

Payments are made using payment instruments. Check and cash are examples of payment instruments.
However, digital payment is not a single instrument but rather an umbrella term that is applied to many
instruments used in various ways. It can be defined as a way of paying for services or goods via an
electronic medium without the use of cash or check. It is also known as electronic payment system or e-
payment.

2. TRENDING DIGITAL PAYMENT METHODS

Mobile In-Store Payments & Apps

The development and usage of mobile POS options will increase exponentially as the demand and usage
of mobile devices grows. 

Digital Currencies

Digital currencies will surface and solidify their place in the economic ecosystem of financing.

With the entire world shifting towards more technologically-driven payment methods, digital currencies,
such as Bitcoins, could be the future of financing and may change the entire economic structure of the
world. Even if they don’t completely take over, digital currencies will become more popular among the
millennials who enjoy innovation, freedom, and convenience - all commodities that virtual money offers.

eWallets & Mobile Payment Applications

These apps allow users to transfer money, purchase products, pay bills and complete virtually any other
type of financial transaction, all with the tap of a finger. By creating an account and storing your
payment details in it, purchasing goods and services with the mobile device is quick and easy – both
virtues that millennials appreciate.

Social Media Payment Options

Social media networks will expand their reach to include payment solutions such as transferring money
from one user to the next (peer-to-peer) or paying directly within the network.

3. DEFINE M-COMMERCE.

M-commerce (mobile commerce) is the buying and selling of goods and services through wireless
handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next-
generation e-commerce, m-commerce enables users to access the Internet without needing to find a
place to plug in.

4. GIVE 3 EXAMPLES OF M-COMMERCE AND THEIR ROLES IN PHILIPPINE ECONOMY.

M-Commerce for finance

The customer (using the mobile) can pay from their bank account using mobile commerce facilities.
Mobile users can transfer funds between account or receive any information related to finance from
financial institutions or banks. WAP based mobile devices allow the user to access the internet or the
website of the financial institutions.
M-Commerce and Mobile Ticketing

Airline tickets can be purchased through mobile phone. It also enables users of mobile phone to make
changes in their tickets. For example, with “traveloka” launched by Philippine Airlines, customers will
receive the Philippine Airlines e-ticket in My Booking or in your email. The customer can book the ticket
at Traveloka website or at the Traveloka app. Besides the above, movie tickets can also be booked
through mobile phones.

M-Commerce for Retail and After Sale Services

Companies can also make online catalog of products so that the mobile users can access the catalog
from their mobile devices. Customers are able to shop, place orders or hire services and pay for dues
through mobile phones.

5. BY YOUR OWN WORDS, IS DIGITAL CURRENCY MORE EFFICIENT THAN REAL MONEY
CURRENCY? JUSTIFY YOUR ANSWER.

Yes, Digital currency is more efficient than real money currency nowadays. It’s easy to access, quick and
easy payments without hassle and fast settlement. You don’t have to be worry for your change, you will
just swipe your credit or debit card, your personal information is attached, and you can track your data
activities by checking it directly on the company or go through online. It also has a privacy for the
chances of identity theft. It is more efficient than real money, because nowadays some Filipinos are so
impatient, we really hate hassle things in life, we always want to be faster than ever.

6. GIVE ADVANTAGES AND DISADVANTAGES OF DIGITAL CURRENCY.

ADVANTAGES OF DIGITAL CURRENCY:

Easy access – Cryptocurrency is readily available to the general public. Almost anyone can make use of
it. It is a decentralized operation and investors from all over the world have easy access to them.

Quick and easy payments – Making payments using cryptocurrency is very easy.  You can do it in just a
matter of a few seconds. It is very fast because you don’t require to feed many details, you don’t even
need to enter your credit/debit card details.

Fast Settlements – With cryptos, you don’t need to wait a couple days for your business to receive the
money. Due to the technology cryptocurrencies are based on, the blockchain, it removes delays,
payment of fees and a host of other third-party approval that might have been present.

No chargebacks – Once you made the payment, you cannot chargeback. This considerably depletes the
chances of a fraud. Once the transfer has completed, it cannot reverse.

No third party – You are the master of your money. You can keep it in your wallet and use it as per your
wishes. There is no third party involved like a bank on whom you need to trust.

DISADVANTAGES OF DIGITAL CURRENCY:

Difficult to understand – Cryptocurrencies are relatively new and come with a learning curve. People
end up investing without proper knowledge and lose money to something they did not learn about.
Lack of knowledge – People are not aware of how to use cryptocurrency and hence open themselves to
hacker. The technology is somewhat complex and therefore one needs to be mindful of it before
investing.

Can lose your wallet – There is a possibility of losing your wallet. If you have stored the money in the
form of digital currency on your phone or computer, you better remember your password and not lose
those devices.

No way to reverse the payment – If you mistakenly pay someone by using cryptocurrency, then there is
no way to get a refund of the amount paid.

Uncertainty & Volatility – Since cryptocurrencies are so new, they are also very volatile. This is one of
the main reasons mass adoption is taking longer than it should.

Not accepted widely – Not many websites and companies accept digital currencies yet. Very few
countries have legalized the use of cryptocurrencies.