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Trends in Digital Transactions in the Modern World

The use of digital transactions is prevalent due to technological advancements. Digital transactions improve customer experiences by making it easier and faster for customers to make payments. This can lead to increased sales and customer satisfaction and offer security for businesses and customers.

There are several digital transactions that are trending. These include:

1. Contactless payments: Contactless payments allow customers to make payments by simply tapping their cards or devices on a reader. This type of payment is often seen to be more convenient and secure than traditional credit or debit card payments.

2. Mobile payments: The use of smartphones to make purchases is becoming increasingly popular. People make use of mobile devices to make payments on platforms such as SnapScan, PayPal, Google Wallet, and Apple Wallet. This also allows businesses to buy and sell their goods and services to customers all over the world, without having to maintain a physical presence.

3. Cryptocurrency: Cryptocurrency is a digital or virtual currency that uses cryptography for security, making it difficult to counterfeit it. For example, bitcoin is a cryptocurrency that can be used to make purchases online. You can use Bitcoin to buy goods and services from online retailers.

4. Buy now, pay later (BNPL): BNPL is a type of financing that allows customers to make purchases immediately and to pay later. BNPL is becoming increasingly popular, as it provides customers with a way to make larger purchases without having to pay for them all at once.

In addition to these, some examples of additional trends include:
Smart contracts: These are self-executing contracts that businesses can store on a blockchain. Smart contracts can be used to automate a variety of transactions, such as the sale of goods and services, money transfers, and purchasing of goods and services.

E-commerce refers to the buying and selling of goods or services over the internet. E-commerce can help retailers to reach new customers, improve customer service, and increase sales.

E-goods are digital goods that can be purchased and downloaded online. For example, you can buy music, movies, and e-books from online retailers.

Enterprise resource planning (ERP):
ERP is software that helps businesses to consolidate various departments within the business. Integrating different departments and resources helps businesses to be productive and efficient. This software is helpful for large corporations.
Big Data: Businesses also use big data to collect and analyse large amounts of data to obtain insights about their businesses. For example, big data allows businesses to gain insights into their competitors, their customers, and the market. Obtaining this information allows companies to acquire a competitive edge, improve goods and services delivery and increase their target market.

Cloud computing:
This is a technology that allows businesses to not only store data, but also access it in the future over the internet. Cloud computing has vast benefits such as reducing costs, improving business efficiency, and increasing flexibility.

The Digital Economy

What is a digital economy: A digital economy is an economy that is based on digital technologies. This entails businesses using digital products, services, and platforms that enable people to communicate, collaborate, and conduct business online. The digital economy has revolutionised the way people live, work, and interact with each other. It also plays a vital role in reducing trade barriers, creating new job opportunities, and paving a road towards innovation.

Digital economy examples: the digital economy ranges from e-commerce transactions to social media, and the Internet. It covers a wide range of activities, products, and services. For example, e-commerce or e-marketplace platforms such as Gumtree and Amazon
It also covers digital and mobile payments such as SnapScan, PayPal, Google Wallet, and Apple Wallet. These platforms not only offer low transaction costs but also boost sales and clientele.

Social media platforms and online advertising use have also been prevalent in businesses. These platforms include Facebook, Twitter, LinkedIn, Google Ads, and Instagram. These platforms play a vital role in increasing a business’s digital presence.
Digitalisation has also made it possible for businesses to introduce a work-from-home option or a hybrid for employees permitting them to work remotely, on-site or both.

Videoconferencing is also becoming increasingly popular. Companies have adopted videoconferencing platforms such as Zoom, Google Meets, Skype, and Microsoft Teams. Businesses are now able to conduct day-to-day activities through video-conferencing platforms such as meetings. Furthermore, these platforms have also made it possible for businesses to outsource employees at a lower cost.

These are just a few examples of the many activities that make up the digital economy. As technology continues to advance, the digital economy will only continue to grow and evolve.

Principles of the Digital Economy

There are several principles that are important for the digital economy. Application of these principles ensures that the digital economy is fair, inclusive, and safe. They also help to protect the rights of businesses and individuals in the digital economy. These principles, recognised across the world, include:
  • Openness: The digital economy must be made available and accessible to everyone regardless of their location or background. Businesses and individuals should be able to participate in the digital economy without facing discrimination or barriers.

  • Transparency: Businesses and individuals should understand how their data is being used and who has access to it. This principle can be applied by ensuring that businesses and individuals are able to understand the terms and conditions of digital services.

  • Security: The digital economy should be secure. Businesses and individuals should be able to trust that their data is safe and that they are protected from cyberthreats and cybercrime. Businesses and individuals should also have access to security features, such as passwords and encryption.

  • Privacy: Businesses and individuals should be able to control their personal data and decide how it is used. For example, this principle is embedded in Protection of Personal Information Act, 2013. This principle is also a fundamental right entrench in the Constitution.

  • Accountability: Accountability is another developing principle in the digital economy. Businesses and individuals should be held accountable for their actions. This can be done by ensuring that businesses and individuals comply with the law and providing mechanisms for businesses and individuals to complain about unfair or illegal behaviour.