A financial transaction is defined as a process in which there is some sort of activity that alters the worth of the assets, liabilities, or owner’s equity of a business.
In a financial transaction, there are two entities: the buyer and the seller; and of course, some amount of money is always involved.
Four types of financial transactions exist in the business domain:
- Purchase: is that type of transaction that is needed by companies such that they get the products and services that are required to achieve the goals of the said company. Purchases can be made with cash, credit or debit card.
- Receipt: this transaction occurs when one company delivers products and services to another company.
- Sale: in this type of transaction, a piece of property is transferred from the buyer to the seller for either credit or money.
- Payment: this refers to the transaction that occurs when a company is paid for its services and/or products.
In terms of salary, earners get paid usually by the month. In the case of daily wage earners, they usually get paid by the hour or by the day. But these methods of transactions are ancient.
In today’s age of modern technology, almost everyone has a bank account, where the money or salary is transferred via electronic means.
Money can be sent to the earner’s account as soon as the job is done. Many apps, including Paytm, work this way.
In the case of Paytm, ApplePay and various other similar apps, the buying and selling as well as the earning process have never been easier.
How do these apps work?
You simply download the app to your smart phone and transfer a certain amount of cash to your Paytm wallet (for example). This can be done via net banking, credit card and even debit card. And in order to pay someone, all you have to do is select the ‘pay’ or ‘send’ option.
But unfortunately, even with these simple, effective and of course safe option, people still prefer to pay by cash or their card.
Of course, this isn’t a bad thing, but the older generation is still distrustful of technology, deeming it unsafe and complicated to use.
No one can blame them, certainly, as they have grown up with the idea of hard cash in their wallets, but everyone needs to step out of their comfort zone to experience change. And change is what drives any society forward and on a much larger scale, what drives the nation towards a better future.
Cashless transactions have many advantages, including being much safer than carrying around large amounts of cash in your pockets.
The entire process is a very simple one, with just a few easy steps and you’re verified to pay any amount using your mobile phone.
Present technology today has enabled cashless transactions. And this is the future.
Cashless transactions, as they say, is the future. In future a time will come when everything will go cashless and in all futuristic activities there will be no involvement of cash at all. In all transactions the digital mode is what will be followed