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Is the technology such as Paytm and SBI buddy a trap for the common man?

The demonetisation has its own advantages and disadvantages, but there can be several other problems that a person may not like using Paytm or SBI buddy or any other applications.

Top six Reasons why Paytm and SBI buddy may not be safe for you

Ever since the popularity has gone up the app based wallet one question everyone has is do I need this app like SBI Buddy and Paytm. These apps help people to transfer money to each other simply with their phone numbers. While these are good options and easy to happen.

However there are some drawbacks.

1: In this type of money transfer’s, one can transfer money to someone who already has an identical e-wallet. For example, one can transfer money from his or her SBI Buddy account to another with an SBI Buddy account and not to someone with, say, a Paytm account.

To avoid the above one can transfer directly to the bank account. But this, invites a transaction fee – 1 per cent for Paytm and an incredible 3 per cent for SBI Buddy. This is too high a transaction fee and cannot be accepted, in long run.

One solution to the above problem is the Unified Payments Interface (UPI). This UPI is not software but a set of protocols that allow any e-wallet to connect to any bank and transfer money in a safe and secure manner. So, anyone can transfer money to anyone else, even if the other party uses the services of a different bank. This is like NEFT or RTGS, but from a mobile phone and for small amounts of money.

Many Indian Banks at present have already enabled UPI in their mobile banking software, but unfortunately, the Boss – the State Bank of India (SBI) – has still not made its software compatible with UPI’s specifications. the UPI platform will cross the tipping point and become the default platform for transferring money in India.

2: What if someone is not technology savvy or not interested in these technologies, it can be a big problem for him as well. As the shops might stop accepting hard case, as they might have the shortage of hard cash availability. Especially for the elderly people they often avoid changing themselves to the new technologies.

3: chances are many of the people don’t have Smartphone’s and good gadget to install this apps, they will not be able to install this apps and hence not able to use it.

4: Giving support to virtual money, can be problematic to small traders and especially someone who has just started a business or a service. He need to compete with other’s before the start itself.

5: No interest of the money kept in Paytm, unlike banks where we get interest for each and every money kept.

6: Fear of security hack, since Paytm is not a government based apps, our security details might be used by someone and can lead to some problem in future, like money loss etc.