Digital transactions face significant impediments:
They require special equipment, cellphones for customers and Point-Of-Sale (POS) machines for merchants, which will only work if there is internet connectivity.
They are also costly to users, since e-payment firms need to recoup their costs by imposing charges on customers, merchants, or both.
Benefits of Digital Transactions
At the same time, these disadvantages are counterbalanced by two cardinal virtues:
Digital transactions help bring people into the modern “wired” era.
They bring people into the formal economy, thereby increasing financial saving, reducing tax evasion, and leveling the playing field between tax-compliant and tax-evading ....
