Cashless economy or cashless society has existed since the creation of human beings. In the past before the invention of money people used to barter and exchange their products. Cashless economy refers to a state where people do not make financial transactions by banknotes- paper money or coins.
In modern times the form has changed and people are trying to make their transactions through digital currencies such as Bitcoin. Little by little Electronic representations of money replace traditional currency. In this article, we review the definition of “cashless economy” and take a look at a simple question! IS the society ready for it?
History of “cashless economy”
As mentioned above it’s a system where no physical cash is in circulation. In this system, people make payments through credit and debit cards, bank electronic fund transfers or virtual wallets. During the 1990s, when electronic banking became popular the trend of using non-cash transactions began. Since then digital payments have become more and more common. Companies like Apple started to operate PayPal and digital wallets. Today we see that people are not willing to use cash anymore.
Benefits of “cashless economy”
The most important benefit of this system is that it’s super convenient. The ease of conducting financial transactions is probably the biggest motivator to go digital. The cashless system helps you avoid queue for ATMs, transact 24*7 and save time. It is no longer necessary for service providers to know their customer physically as the payments model has overcome limitations related to physical presence. It also brings down the costs of printing and storing cash plus less material will be used on banknotes. Through cashless economy, you can always track your expenses asap on your mobile phone. These were just the main advantages of this system, there are many more. If you use trustworthy payment processors (such as PayPax) these transactions will be completely safe and fast.
Is the society ready for this transformation?
Just like any other system a cashless economy has some requirements. the most important factors that should be available are internet connectivity, electricity, smartphones, enough bank accounts, debit and credit cards, third-party apps etc. There are times that you might not have access to the internet. Another big disadvantage of the cashless economy is that not everybody knows how to do digital transactions. That’s why its reach is limited to urban and semi-urban centers. Therefore it is very difficult to implement cashless economy in the big country where many sections are rural areas and have a lot of illiterate and poor.
10 most cashless countries
The world’s most cashless countries are as follows in order
|Overall ranking||Country||Proportion of cards in issue with contactless functionality||Debit Cards per Capita||Credit Cards per Capita||% of Consumer Payment Transactions Using Non-Cash Methods||Growth of Cashless Payments Over Past 5 Years||% of people that are aware what types of mobile payment services are available to them today|