Are smartphones ushering in a new economic world order?

Smartphone World

Increasingly, people are switching on to their smartphones, tablets or mobile devices for their financial and banking transactions. Gradually and slowly, the hard currency is taking a backseat, and the banks and financial institutions are also encouraging the use of electronic money. From all aspects, it’s easier and convenient for the general public, and it’s healthier for the economy as well. Almost every bank has a mobile app, and with newer financial apps popping up each day, more people are attracted to electronic transactions. The smartphones and mobile devices are rapidly replacing the traditional ways of cash exchange. Let’s have a closer look at how the economic system is gradually changing and what are the main agents of change.

Replacement of Banking System

Although almost all the banks have come up with their mobile apps to stay updated, customers have started switching to an alternative digital system ditching the banking system altogether. PayPal allows the users to make purchases both online and offline using multiple currencies and transfer cash to any user. It gives the facility of all the transactions that a bank allows to its account holders. Many entrepreneurs and businesspeople are shifting to PayPal owing to its service charges which are much lesser than banks. Considering all these advantages, people who have been using PayPal started getting addicted to it and haven’t looked back since then.

Bitcoin – The digital Currency

Bitcoin, the digital currency has become so popular that many banks are even considering to reshuffle their database ledger technology and accommodate the online currency. The digital currencies like Bitcoin have to be purchased through hard currencies or can also be done through the debit or credit cards. Bitcoin can be used on the internet and can also be used for both online and physical transactions. Transferring funds to other people is also easy and convenient through bitcoin wallets like Coinbase, Blockchain, etc.

Easy Foreign Exchange

Currency exchange is one of the main requirements of international travelers and businessmen for which they often have to stand in long queues and pay high service charges. Although your bank may provide you foreign exchange, you still may have to find your bank branch and stand in a queue. All of these can be avoided with just a currency exchange mobile app which can be found in the app stores to download. These apps offer you generous exchange rates, and you can purchase foreign currencies right from your mobile phone. You can then withdraw the cash directly from any of your bank’s ATMs. These apps can also be used to transfer foreign currencies to other people in foreign lands.

The way new mobile apps are revolutionizing the financial world and the pace with which old practices are replaced by digital alternatives, old institutions with traditional methods are left in the dark. As the mobile apps are taking the financial world by storm introducing new methods, banks are also constantly evolving to keep pace with the fin-tech world. As we live in a highly globalized society with the internet growing in popularity and smartphone technology advancing at its maximum speed, it won’t be long until a new economic world order evolves replacing all our institutions and practices.