Digital Payments: Their Functioning, Benefits and Complications

Digital Payments:

Their Functioning, Benefits and Complications

All of us have heard extensively, in recent past, about the “war on cash”, the move to make India and other countries “cashless economies” and the general trend among policymakers worldwide to move the economies of the world to a digital and information enabled paradigm.  It is worth noting, in this framework, that the emphasis laid on digital payments and the digitization of commerce has implications for individuals, businesspersons, governments, and everyone who is a participant in the economy.

Consequently, it is very-very important to understand what digital payments are and how they work and how they benefit the economy as well as the associated problems that ensue from using such modes of transactions and commercial dealings. Digital Payments are payments that are conducted over the internet and mobile channels and hence, any payment that is sent online or through mobile computing and internet-enabled devices can be called digital payments. For digital payments to take place, the sender of the payment must have a bank account, an online banking method, a device from which he or she can make the payment, and a medium of transmission meaning that either he or she should have signed up to a provider or an intermediary such as a bank or a service provider. We will come to the last part in a bit.

The receiver of the payment too must have these ways to accept payments, apart from the sender having such means. This means that there must be a medium of transmission between the sender and the receiver wherein the former instead of paying the latter in cash and physical format pays in digital format meaning that the transaction happens over eCommerce or mCommerce modes of transmission. Thus, what is important in any digital payment is the “via media” through which the payments happen which means that the intermediary and the modes of transmission are indeed the keys to making the transaction or the digital payment successful.

Let us first think, coming to the intermediary,  about what happens when we pay cash in the physical format. We first need to withdraw the cash from the bank or get it from someone who is likewise using cash obtained from the bank. Thus, without banks and banking channels, there is no way we can access cash or transact for commercial dealings. Similarly, the digital payments need the intermediary as well and considering the fact that the payment still involves money though not in physical format and in digital format means that there must be infrastructure that connects the flow of digital cash across the payment value chain.

Value of Indian Rupees against that of Other Countries

Value of Indian Rupees against that of Other Countries

 

In this article, we are going to break down the top currencies of the world in terms of their value in the world, and also show the highest currency in the world against Indian rupees, discussing how they compare to the Indian Rupee and how their given economies allow them to be so strong.

Kuwaiti Dinar (KWD)

The leader of the Top 10 currencies of the world for a long long time. KWD is the most valuable currency in the world. KWD is the official currency of Kuwait. One KWD is equal to a whopping 212.262 Indian Rupees. 

Kuwait actually possesses the fourth highest per capita income in the world, largely thanks to the country’s massive oil reserves.

Bahraini Dinar (BHD)

The Bahraini economy was the first post-oil economy to exist in the Persian Gulf. The bulk of its economy relies on banking, financial services, and tourism. In 2006, Bahrain actually had the fastest growing economy in the Arab world. 

The value of the dinar has benefited from this stable, diversified economy. One Bahraini Dinar is equal to 170.63 Indian Rupees. Bahrain is the only country that uses the Bahraini dinar.

 

Omani Rial (OMR)

Oman is the only country that used the Omani Rial. 

Oman’s economy is very stable because of powerful oil and gas industries. One Omani Rial is equal to 167.16 Indian Rupees.

 

Jordanian Dinar (JOD)

The Jordanian dinar is the currency of Jordan. 

West Bank used Jordanian Donar and the Israeli shekel as well. 1 Jordanian Dinar is approximately equal to 90.93 in INR

Great Britain Pound (GBP)

GBP is one of the world’s most frequently traded currencies. One pound is worth approximately 84.238 Indian Rupees. Not only that, but the pound also holds the honor of being the oldest currency in the world that is still currently in use. 

Its use can be traced back as far as Anglo-Saxon Britain, which would make the pound around 1200 years old

 

Gibraltar Pound (GIP)

The Gibraltar pound is the currency of Gibraltar. It is pegged to – and exchangeable with – the British pound sterling at par value. 

The central bank controlling the GIP, with the responsibility of minting coins and printing notes, is the Government of Gibraltar. One GIP is equal to 84.238 in Indian Rupees

 

Caymanian Dollar (KYD)

The Cayman Islands Dollar is the currency of the Cayman Islands. Currently, KYD is the 7th-highest-

value currency unit in the world, as of 15 July 2017. One KYD is equal to 78.438 in Indian Rupees

Euro (EUR)

Although it may not be the most valuable currency on this list, the euro is definitely one of the biggest currencies on this list.  

26 countries of the European Union use the euro including Austria, France, Germany, and Italy. 1 Euro is equal to 73.74 in Indian Rupees

 

Swiss Franc (CHF)

The Swiss franc uses different colors in its banknotes, which are yellow, red, green, blue, brown, and purple. Switzerland, Liechtenstein and Campione d’-Italia uses CHF as an official currency. 

The strength of the Swiss franc is almost a no-brainer. Switzerland is one of the wealthiest countries in the entire world. It is home to a massive technology sector and a host of different major corporations, like The Swatch Group and Nestle. One CHF is equal to 66.70 in Indian Rupees

United States Dollar (USD)

Surprisingly at the bottom of the list even though it is the most traded currency in the world. Over the last few years, USD value has depreciated but the strength hasn’t. USD is valued at 64.31 in Indian Rupees. 

Many consider this as the most valuable currency in the world ( Asian ) owning to US as a super power nation.

Unique Places around the World

Unique Places around the World

 

Our earth is an incredible planet and with the advent of technology, remote and hidden places have been finding their way into the eyes of the world. It is not possible for everyone to keep travel everywhere, nevertheless the internet gives a picture view into the places one can’t physically visit, and opens up the wonders of our planet. This list below looks at some of the most unique areas around the world and also includes natural areas as well as those created by humans.