How has the rise of peer-to-peer (P2P) payment systems impacted the way society handles money?

• A. It has eliminated the need for all traditional banking institutions.
• B. It has decreased the overall use of digital technology in financial activities.
• C. It has increased the speed and convenience of financial transactions between individuals.
• D. It has made cash the only acceptable form of payment in most transactions.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of peer-to-peer (P2P) payment systems. These are digital platforms that allow individuals to transfer money directly to each other without the need for intermediaries like banks.
2. Step 2: Analyze the impact of P2P systems on traditional banking. While P2P systems provide alternatives, they have not eliminated the need for banks entirely, as banks still offer many essential financial services.
3. Step 3: Consider the role of digital technology in financial transactions. P2P payment systems actually increase the use of digital technology by enabling faster and more convenient transfers via smartphones and the internet.
4. Step 4: Evaluate the effect on payment methods. P2P systems reduce reliance on cash by providing digital alternatives, so cash is not the only acceptable form of payment.
5. Step 5: Conclude that the primary impact of P2P payment systems is to increase the speed and convenience of financial transactions between individuals, making money handling more efficient and accessible.