Mobile payments is a mode of payment using mobile phones. Instead of using methods like cash, cheque, and credit card, a
customer can use a mobile phone to transfer money or to pay for goods and
services. A customer can transfer money or pay for goods and services by
sending an SMS, using a Java application
over GPRS, a WAP service, over IVR or other mobile communication technologies. In India, this service is bank-led.[1] Customers wishing to avail themselves of this service will have to
register with banks which provide this service. Currently, this service is
being offered by several major banks and is expected to grow further.[2] Mobile Payment Forum of India (MPFI) is the umbrella organisation which is
responsible for deploying mobile payments in India
Most of
us are always on the lookout for ways to cut the amount of time we spend on
mundane chores. One of the ways online banking has helped free up our time is
through the advent of automatic bill pay. You can set up automatic payment
plans for utility, entertainment, household, and other bills. In fact, almost
any vendor you purchase goods or services from now offers automatic payment
plans.
With an
automatic payment plan, the monthly bill is recurrently charged to your credit
card or debited from your checking account on a pre-set date every month
without you having to do a thing. All my monthly bills, from my AT&T cell
phone bill to my car payment to my Netflix account, are all charged
automatically to my Amtrak rewards credit card.
It makes
life easier knowing that bills are paid on time and in full each month.
But while there are definite advantages to signing up for automatic payment
plans, there are drawbacks as well. Thoroughly consider the pros and cons and
how they could affect your lifestyle before signing up.
Advantages
Automatic
payment plans have grown in popularity over the years as a result of many of
the conveniences and advantages they offer.
1.
Convenience. By
setting all your bills to be paid automatically, you’re not as pressured to
keep track of what needs to be paid when or paying them on time. Once an
automatic payment plan is established, your bank or credit card will handle the
rest.
2.
Rewards. The
biggest reason I charge my monthly bills to my travel
rewards credit card is to get
reward points for travel. All those bills add up to hundreds of points each
month that are credited to my Amtrak Rewards account. This means I get at least
one free cross-country trip each year. Why not use your bills to help you earn
free travel, rewards, or even cash back?
3.
Environmental Issues. By
eliminating paper bills and check writing, you reduce your impact on the
environment. Not only do you save paper and trees, but you eliminate the carbon
footprint left by snail mail. Plus, you don’t have to buy and keep on-hand a
constant supply of stamps.
4.
Helps Your Credit Score. When
your bills are set up to be automatically paid, you should rarely miss a payment
or be delinquent. These are two things that can majorly hurt
your credit score. In fact, when credit scoring agencies see that your bills
are always paid on time, it helps your credit score by keeping it high or
boosting it to a higher bracket.
5.
Less Chance of Identity Theft. If your
bills are not mailed to your home and you are not mailing in paper payments
with credit card or checking account numbers, you reduce your risk of identity
theft. There are risks when paying online as well, but the security surrounding
these payments is typically far greater than the security offered by an
unlocked mailbox.
6.
Saves Money. Since
you’ll no longer have to pay for checks, stamps, envelopes, or gas for trips to
the post office, having your bills paid automatically saves you money too!
For me, the convenience of having all my bills automatically
paid definitely outweigh the risks. It saves me time and money while rewarding
me for doing so. But you do need a certain amount of discipline to avoid
trouble with automatic bill pay. For example, it’s not a good idea to just “set
it and forget it.” If mistakes occur, you could be held accountable. Plus, good
financial habits are rooted in an awareness of what you’re paying and when. So
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