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Jevons Paradox in Payment & Banking


Jevons Paradox was introduced by William Stanley Jevons, an English economist, in 1865. He observed that technological improvements that increase the efficiency of using a resource often lead to an overall increase in the consumption of that resource, rather than a decrease, which was an observation that went against common logic.


A similar pattern is happening now with FinTech applications, especially those available through mobile platforms. Faster, cheaper, and easier payments have led to more accounts, more transactions, and much broader financial inclusion, especially in regions that previously had little or no access to financial services.


FinTech promised cheaper and faster solutions, but it made finance more confusing and dangerous than ever. Every new platform creates more confusion, risk, tech dependency and data leak opportunity - all new ways to lose control over your money!


Businesses now depend on systems they barely understand, while banks keep closing accounts or freezing funds overnight. The real danger is not technology but the lack of structured education in payments and banking.


 
 
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