Many people have already resorted to using Gcash for cashless transactions in today’s digital age as this platform offers convenience and ease of transaction to its users. However, like any other technology tool, GCash has its downsides as well. What are its main disadvantages, and how can these downsides be mitigated?
One big drawback of GCash transactions is the security risk involved. Because transactions happen purely online, without any physical exchange of cash, GCash users become vulnerable to cyberattacks and identity theft. Hackers might gain access to a user’s account and transfer funds without their consent. This issue can be mitigated by setting strong passwords, enabling two-factor authentication, and never sharing personal details with unauthorized persons.
Another downside of GCash is that some vendors do not accept it as a form of payment. GCash is still a relatively new platform in the Philippines, and so not all merchants are yet on board with it. This issue is likely to be resolved over time as more businesses become aware of the benefits of GCash for customers and merchants alike.
The unavailability of GCash top-up centers in certain areas also limits its usability. Top-up centers are required to put cash into one’s GCash account, and their location in some provinces and rural areas is limited. This leaves GCash users in these areas at a disadvantage, as they cannot use it as effectively. This can be mitigated if GCash partners with more businesses to act as top-up centers, or if it integrates with traditional banks to enable online top-up transfers.
GCash can also be limited by its daily transaction limits, which is Php 100,000 (about $2,034) per day and Php 500,000 ($10,170) per month. For users who need to transact larger sums, this may prove inconvenient. This drawback is necessary, however, to prevent its use in illegal activities such as money laundering, terrorism financing, and other fraudulent activities.
Moreover, GCash transactions rely on a stable internet connection to function properly. However, not all areas in the Philippines have reliable internet access, and this can limit its usability. In addition, if the system itself experiences technical downtime, users are left unable to transact. This can be mitigated by improving internet infrastructure and resolving technical issues as quickly as possible.
Lastly, GCash may not be equally accessible to all individuals, particularly those who are unbanked or have limited access to digital technologies. Some individuals may not have the technological know-how or devices required to use GCash, which limits its reach. In addition, some may not have the required identification documents to register for GCash accounts, creating a digital divide in society. This issue can be mitigated by improving digital literacy, providing hardware resources such as smartphones or tablets, and improving documentation accessibility.
GCash may have provided a convenient way to transact online, but with it comes some downsides. But there are ways to mitigate their impact. If these concerns are addressed appropriately, GCash could be a tool to speed up financial transactions, save time, and provide excellent value for users.
