While a part of humanity is just started using a plastic bank card to make a payment and withdraw a cash, another part uses a digital card for the same purposes.
A digital card is an innovative and more convenient payment instrument, as a digital card, unlike a plastic card, doesn’t require any physical representation in the first place. Tis payment method has been released on the market several years ago, but there was no particular demand for it. People has been using out of habit ordinary cards that support contactless transactions as well. As cash is becoming obsolete and, especially in the wake of COVID-19 and self-isolation, digital cards, like other digital solutions, are highly desired.
The digital credit card options are not different from an ordinary plastic card. It has all details required for bank transactions and online payment: card number and account number, expiration date, authenticity code. You can engage an NFC (Near Field Communication) protocol connection by placing the smartphone near the NFC Reader under Apple Pay, Samsung Pay or Google Pay mobile services. It can be used for offline shopping at stores, and withdrawals at ATMs with contactless payment function.
This card has several benefits compared to plastic card: it is fast to register; it is more convenience, the card service is free for clients and it is safe for making payments. You can have the digital cards issued at any place using your mobile phone or a mobile application. To receive the issue card, you do not need to go the bank or wait for courier service. It takes several minutes to issue before you can start using it.
If an ordinary plastic card made free the wallets from cash and small change, then a digital card make your pocket free from plastic, and at the same time, it is environment-friendly. A plastic card can be lost, while a digital card can’t be lost, unless the phone to which it engaged is lost. But if you have your card lost, it would take some time while you notice it; as to the lost phone, it is almost impossible not to notice the absence of the phone. At the same time, it would be more difficult to use it, as a fraudster would need a lot of time to unblock both the phone and the card, during which you can block access to money.
In addition, mobile payments are faster and safer than physical cards. Instead of the card data, the data encryption is supplied by a merchant’s payment processor using validated methods; hackers can’t access consumers’ sensitive data because the financial information isn’t transferred at the time of the transaction. At the same time, the digital card service is free for clients as the bank saves on physical card issuance and logistics.
Like any innovation, digital cards have certain disadvantages related to the technical level of their service. Most mobile wallets rely on a technology called NFC that enables the offline shopping at stores and withdrawals of cash.
And even if you have a NFC technology at your smartphone, not all terminals and ATMs are equipped with a reader. Another feature of digital card is that it can be issued only to active customers of a bank. This limitation is due to the requirement for mandatory identification of the client to open an account.
Experts have different opinions if a digital card can replace a plastic card. Some consider the convenience of registration as a significant advantage of a digital card, when it takes a few minutes to click via your personal account to open a payment card of full value, before you can start using it for shopping.
Other benefits like payment via smartphones or other gadgets, safer payment method are provided mainly by payment services, to which ordinary cards can also be engaged.
Others predict that with a greater portion of new smartphone-era customers to come, digital cards will replace plastic. Nevertheless, despite permanent forecasts of breakthroughs in mobile services, banks do not plan to refuse issuance of usual cards.
This is due to both the underdeveloped payment infrastructure and the level of financial and technical literacy of clients. Time and the market will show which one is right. Despite the technological miracle behind any digital service, the key indicator of a product’s success is consumer demand.
In Turkmenistan, all holders of plastic bank cards can enjoy mobile and internet banking services, which are convenient and trend account management method. They allow at any time, without contacting the bank, to independently check account balances, pay loans, replenish mobile and home phone accounts, pay for home Internet and IP-TV, as well as view your payment history.
To promote non-cash payments and support customers, banks of Turkmenistan offer the services “Cash back” (it refers to a credit card benefit that refunds the cardholder’s account a small percentage of the sum spent on purchases) and “Overdraft” (Overdraft Service allows the bank to authorize debit card transactions if there isn’t enough money in your checking account to cover them. The development of the banking sector of the country is aimed on further digitization and taking into account global trends.
This card has several benefits compared to plastic card: it is fast to register; it is more convenience, the card service is free for clients and it is safe for making payments. You can have the digital cards issued at any place using your mobile phone or a mobile application. To receive the issue card, you do not need to go the bank or wait for courier service. It takes several minutes to issue before you can start using it.
If an ordinary plastic card made free the wallets from cash and small change, then a digital card make your pocket free from plastic, and at the same time, it is environment-friendly. A plastic card can be lost, while a digital card can’t be lost, unless the phone to which it engaged is lost. But if you have your card lost, it would take some time while you notice it; as to the lost phone, it is almost impossible not to notice the absence of the phone. At the same time, it would be more difficult to use it, as a fraudster would need a lot of time to unblock both the phone and the card, during which you can block access to money.
In addition, mobile payments are faster and safer than physical cards. Instead of the card data, the data encryption is supplied by a merchant’s payment processor using validated methods; hackers can’t access consumers’ sensitive data because the financial information isn’t transferred at the time of the transaction. At the same time, the digital card service is free for clients as the bank saves on physical card issuance and logistics.
Like any innovation, digital cards have certain disadvantages related to the technical level of their service. Most mobile wallets rely on a technology called NFC that enables the offline shopping at stores and withdrawals of cash.
And even if you have a NFC technology at your smartphone, not all terminals and ATMs are equipped with a reader. Another feature of digital card is that it can be issued only to active customers of a bank. This limitation is due to the requirement for mandatory identification of the client to open an account.
Experts have different opinions if a digital card can replace a plastic card. Some consider the convenience of registration as a significant advantage of a digital card, when it takes a few minutes to click via your personal account to open a payment card of full value, before you can start using it for shopping.
Other benefits like payment via smartphones or other gadgets, safer payment method are provided mainly by payment services, to which ordinary cards can also be engaged.
Others predict that with a greater portion of new smartphone-era customers to come, digital cards will replace plastic. Nevertheless, despite permanent forecasts of breakthroughs in mobile services, banks do not plan to refuse issuance of usual cards.
This is due to both the underdeveloped payment infrastructure and the level of financial and technical literacy of clients. Time and the market will show which one is right. Despite the technological miracle behind any digital service, the key indicator of a product’s success is consumer demand.
In Turkmenistan, all holders of plastic bank cards can enjoy mobile and internet banking services, which are convenient and trend account management method. They allow at any time, without contacting the bank, to independently check account balances, pay loans, replenish mobile and home phone accounts, pay for home Internet and IP-TV, as well as view your payment history.
To promote non-cash payments and support customers, banks of Turkmenistan offer the services “Cash back” (it refers to a credit card benefit that refunds the cardholder’s account a small percentage of the sum spent on purchases) and “Overdraft” (Overdraft Service allows the bank to authorize debit card transactions if there isn’t enough money in your checking account to cover them. The development of the banking sector of the country is aimed on further digitization and taking into account global trends.
