You can't underestimate the impact of smartphones and POS systems on developing economies. Just in case you didn’t know, POS stands for point of sale. Smartphones have really simplified buying and selling, while POS systems have made it a lot easier to send and receive money.
If we are to talk about the new monetary system development, I think it should be crypto blockchain which gives the the exceptional convenience qualities to the individuals.
The blockchain transactions model of services and operations serves better than the traditional banking system because you can send funds within and across borders with lower transaction fee and still, you will be in control of your funds in the decentralized concept.
The fiat can not help the economy nomatter the technological developments of transactions. You still don't have your right and the fiats is valueless against inflation.
POS and smartphones are two important asset one may not do without in our daily activities, Both performs different functions but are all working towards one goal which is to make life easy for all individuals willing to accept.
As for smart phones its primary duty is for easy communication be it far or near and can also be used to perform other functions apart from easy communications which are accessibility of information, for entertainment, banking activities and so on, while that of POS is limited financial activities and keeping accurate information about any transaction. The effort of both device in making life easy is something we can't do without and remain grateful to the inventors of both
To be honest, smartphones and POS have become a part of our daily lives. Where before, money transactions meant long lines and hassle, now everything is done with a few touches. Another thing I think is that people are now preferring cashless transactions. As a result POS has become a daily thing. When I myself go to the market, most of the time I use our local MFS. As a result I don't have to carry extra cash, and there is no need to exchange money. And even small shopkeepers in villages are now accepting payments through MFS or POS apps which was unimaginable once. In fact, technology is actually changing not only cities but also villages.
These two device's have made it easier to make transactions smooth, with the use of a possibility and a mobile device you can make transactions like bank transfers from anywhere without necessarily going to the bank. And the use of the pos machine has made the bank less crowded with people, there are amounts of money that you can withdraw from pos agents without going to queue up in a bank
Smart phone is one thing that has made life much easier cause with your smart phone around you doing most of the things is way faster and easier your connection to the Internet will be fast and all the other things you wanna do will become easy and smooth too. POS machine is something I think we shouldn't celebrate cause it is a sign that the banks have failed in providing fast services to their customers, in a country where things are working well you will not be celebrating something that is making you spend more when you have banks that is responsible for rendering such services.
I can't remember the last time I used cash, if you don't accept transfer you should at least has a point of sale in your shop so people can you use their debit card to buy whatever you are selling. Other than phone transfer, if you don't have a lightning micro finance bank account, I consider you as a person that is not serious, you should have that so when people make transfer for you, it should take less than a minute to confirm the transaction. I must not wait for hours until you confirm the transaction, some commercial banks are very poor with their network.
If you are going into any business, just be mindful of fake transaction. I have seen people make fake transactions with phones, even if cash might not be perfect you can't run fake transactions with fiat unless it's a counterfeit money but as an experienced cashier, you should know better difference between fake money and real money, the signs are always obvious no matter how good looking the money is presented.
It's a very good point that you bring up, how smart phones people in remote places much greater ability to stay in touch and even engage in commerce with the world. Many people take smart phones for granted now, but that fact you can do so much on such a small device is incredible and the barriers to what is possible keep on falling. As we see satellite internet gain ever more traction, it'll mean that you only need a power source to stay available every day. It also takes centralized power away from local banks or payment providers, who would traditionally control most of the financial services in an area because people had limited transportation options to get around. More peer to peer activity, lowering fees and allowing greater access to information is such a winning combination that every government needs to support.
You are talking about infrastructure not innovation. The need to do transactions wasn't invented by POS systems and smartphones. They occupied a niche that conventional banking was unwilling to enter, as poor individuals are not profitable in the conventional framework. In 2007, the M-Pesa service was introduced in Kenya, where in three years, it acquired a greater number of users since its inception compared to the banking system. Why? The banks demanded minimum balances, physical branches, paperwork, which informal workers lack.
These technologies are unintentional redistributive. A fruit vendor in Lagos using a smartphone can access price information that had been accessed by wholesalers only. That is a change in negotiating power. The reduction in transaction costs you are discussing is factual, but the second-order implications are more important. Remittances without the 10% fee charged by Western Union. Savings without bank fees eating everything. Mobile money histories, which translate to credit.
This is not some tech utopia. New dependencies are made by the same systems. Your business dies when the network is down. Owners of platforms collect rents. Data gets harvested and sold. China is taking a close look at this model: surveillance and digital payment = social control at scale.
Point of sales and smart phone has been of a Great help to this generation in many ways, the POS machine has made transaction fast, easier and reliable secondly it has reduced the rate of people crowding the bank and all that just like some people Said. But the most amazing part is the Smart phone which is not only use for fiat transaction, it is as well used for Bitcoin transaction which is transactable at any given time anywhere in the world with just one click through Blockchain transaction. We can see how transaction is made easily through Bitcoin and any other cryptocurrency with just a wallet p2p. I believe with computer and smartphone Bitcoin transaction was made easy . So smart phone made Bitcoin transaction faster and easier compeard to even fiat transaction.
These two technological advancements have become an integral part of modern life. No more waiting in long lines to make a transaction, with just a few taps, you can complete your purchase and get home quickly. You also no longer need to carry wads of cash everywhere you go. Smartphones and POS systems have truly simplified everyday life. What I admire most about these technologies is how they make transactions more affordable, sometimes even free + I can save without having to worry about my balance being deducted every month, something I don't get when saving at a bank.
Everything associated with money is connected to smart device (mobile phones), this device cant promote the economy state rather its beneficial individually. Smart phones are the fastest when carrying out internet related activity like the example stated money transaction, including digital currency while the POS is a major business scheme for many in developing countries, we should not get surprised when new modern inventions are created for different kinds of purpose
Civilised or currently developing, not all can see a huge important in POS because in some of this countries POS got to be popular because of there low system of banking but when you check extreme you will see that not all of the developing countries are suffering the same thing, some has so much of what few others do not have, so when a country has a lot of banks that can serve even twice there masses then POS cannot survive on that country since the purpose is for exchange of cash either physical or online, so there function is limited to only this countries with the issues of bank. For the smartphone is too important because is our relationship with the internet.
Not only have digital payments made life and transactions easier, it has also made money more traceable. It's a good thing for developing and under developed countries as it would increase the transparency and make corruption difficult as well as make it hard to launder money. That's one of the reason why digital payment has been heavily promoted in developing economies. Alongside all the benefits, the drawback of such system is that the government could track its people financial and digital footprint through such system. Take an example of China, it has advanced systems where people can pay everywhere and take any services through their palm or facial scan but it also enable China to monitor all its population at every moment.
Smartphones are the mobile computers of our era. People can do anything through smartphones these days which was only possible to do through computers in the past. The phenomenon of apps proportionate people to earn in different ways, like ifood, uber and airbnb services, where people can earn and work as autonomous. For countryside regions the impact isn't that effective, but for cities with 100K+ population it's already quite profitable.
Regards POS, it's the first time I hear this abbreviation, as for me POS was Proof of Stake. But it's indeed helpful to have such payment alternatives available, as they bring more accessibility and the possibility of not using paper money directly.
We see that the current era has become such that smart phones are playing a major role as a companion in the gap between work. We do all kinds of transactions, such as buying and selling, online trading, most of our daily transactions through smartphones, which is constantly developing the economy. Now electronic transactions are gaining more importance than paper dollars. The POS system has become our daily companion as it is very effective, it calculates the exact cost of the product through barcode scanning, calculates how much discount or how much tax is in it and provides a receipt. Through this, the stock level of the product is automatically updated.
It's just early sign of digital society where people shift from fiat to paperless digital society. Bitcoin is still way ahead of that though since it thinks about privacy, decentralization, durability and so on.
Good too see that digital transaction not only booming in developed country but in developing country as well. Moving forward, I predict Point of Sale will be integrated to phones by default and there will be many payment gateways.
All these have been made to make life more suitable for us to live in, we can make use of cashless transactions and thereby solving the challenges of bulkiness, with the use of our mobile phones, we make make transactions to any part of the world ass long as we are connected.
Lastly, the use of PoS have also make it more possible for us to make fast transactions without having to go to the banks or use the ATM machines before initiating our transactions.
These are just innovation that are designed to help not just the financial system but life in general. The world has grown to the level where phones are now more like a necessity for everyone wether you're banking with it or not. As a matter of fact, if you don't have phone, there's no way you will ever feel complete. The POS came as an alternative to the banking system and because of the poor customer service that's usually associated with going to banks, it's now the case that POS has almost cut down any form of going to the bank.
In all, life is becoming better by these kind of innovation that's helping all sectors achieve things in an easier way. Take any of them out and you've taken us back to the era where things become really deficult for man.
'Developing economies'? Is these two (Smartphones, POS) not a thing on developed economies?
These days, every bank has their own mobile apps, with which you can send money instaneously, I have never used POS machine to send money.
How does that work?