Deliverect | Payment Digitalization: Challenges You Can Encounter and How to Overcome Them (2024)

FAQs

What is the challenge of digitization? ›

As they adapt to this digital age, they'll face challenges requiring effective navigation. This shift impacts every aspect of an organization, not only adopting new technologies but necessitating substantial change management in business operations, customer engagement and value delivery.

The consumer starts payment transactions using UPI, mobile wallets or a similar option of his choice. The payment details are transmitted securely into the payment network. The payment network checks for the balance, thereafter, funds are moved from the consumer's bank account to the payee's bank account.

Overcoming the challenges of digital transformation requires a strategic, holistic approach. Organizations must prioritize cultural change, invest in talent development, and carefully manage technological, regulatory, and financial aspects.

Disadvantages of digitisation

As with any structural change, digitisation also brings with it a (small) number of disadvantages that companies must prepare for. Some security risks: Digitisation means storing some or all of your documents digitally. As a result, some sensitive data could potentially be compromised.

Social Isolation and Decreased Interpersonal Skills.

The rise of digital technology has brought about many benefits, but it has also led to negative impacts on our social lives. Social isolation and decreased interpersonal skills are some of the consequences of excessive use of digital technology.

It is substantiated that the main social threats posing a danger to every person in the process of digitalization are the Internet dependency, personality degradation, decline in mental health, further income differentiation, unemployment increase, increased state control over income and expenses of each person, ...

Cyber security poses a major risk to businesses on their digital transformation journey. Inability to integrate legacy and new technology can be challenging. Talent remains critical, and businesses must implement the right culture and drive digital literacy.