Can you imagine living your life where you no longer need cash for your financial transactions? Sounds too good to be true? Well, it’s not.
Now more than ever, an increasing number of service companies, businesses, financial institutions, and even some governments are steadily and slowly moving towards the so-called cashless society. Yes, electronic transactions have become and will sooner become the new norm, and it’s not impossible to see why.
If you are wondering why a cashless society works, the answer is simple: it offers a lot of benefits. These include eliminating the challenges that come with managing currency and the costs involved with handling cash. If you have a business, you can also finance it cashless!
Still unconvinced? Continue reading to know more about a cashless society and all the perks that come with it.
Cashless Society Defined
To understand why a cashless society works, you should first learn how it works in the first place. A cashless society eliminates coin-based and cash paper currency and replaces them with electronic payment methods. These electronic transactions include the use of electronic payment services such as PayPal or Apple Pay, as well as debit or credit cards.
Available Payment Methods
Payments take place electronically in a cashless society. The following methods can be used when transacting with individuals, organizations, and other businesses.
- Debit and credit cards
Debit and credit cards are among the most popular alternatives to cash you can simply tap or swipe to pay bills, transfer money, and make purchases.
- Electronic payment apps
All you have to do is download the apps on your smartphone or other devices that serve as your mobile wallet. You can use these for B2B transactions and P2P payments.
- Virtual currencies
Digital currencies or cryptocurrencies are utilized for money transfers and encourage competition to help lower the costs involved.
Perks of a Cashless Society
Among the top reasons why more and more countries are now shifting to a cashless society is mainly because it is very convenient and simple. As long as you have your card or phone with you, you can get instant access to all your cash holdings.
It also means you won’t have to bother visiting an ATM just to get cash or worry that you don’t have cash handy to buy something you need urgently.
Here are other benefits of a cashless society:
- Automatic Paper Trails
Financial crimes including drug-related operations, illegal gambling, or money laundering would be more challenging in a cashless society. Such crimes often involve cash and don’t leave transaction records. In a cashless society, on the other hand, it will be easier to trace these crimes when the source of funds can be easily identified.
- Cost Savings
Handling cash comes with a price. Printing bills and minting coins cost money. Businesses also have to deposit money and withdraw it once it runs out. They also need to work with companies for the safe transportation of cash. All in all, you need to spend resources and time to protect and transport large sums of money.
- Easier Exchange of Currency
It can be a hassle to travel with cash, especially when you need to exchange dollars for local currency. With a cashless society, it saves you from the worries of the withdrawal amounts and local currency since the electronic devices will deal with the exchanges on your behalf.
Are you ready to go cashless soon?