A CASHLESS SOCIETY DISPELLING THE MYTHS
What does it mean to go cashless?
The terms cashless and cashless society are constantly being mentioned in online conversations and the media. This has increased with the onset of COVID-19 as businesses and consumers are seeking contactless ways to pay for goods and services.
But what exactly is a Cashless Transaction and what does the term Cashless Society mean?
A Cashless Transaction is one where you can purchase goods or services without using cash as a form of payment.
A Cashless Society is one where there is LESS reliance on cash. It is not the absolute removal of all physical banknotes and coins from the system.
Throughout history, payment systems have undergone several changes. In fact, cashless societies existed when societies depended primarily on the well-known barter system.
Cheques which are commonly used today is a well-known cashless payment option as well as debit and credit cards. These cards are used at Point of Sale (POS) terminals or to facilitate online payment.
Dispelling myths about a cashless society
Every transaction you make is recorded and you have no control over your money.
While transactions are recorded, they cannot be controlled. Recorded transactions are important as they also protect the consumer. Consumers also have receipts that can be used to query payment or balance discrepancies.
You cannot help vendors/self-employed entrepreneurs without cash.
Cashless options help self-employed individuals earn more money for their businesses.
For instance, service providers can sell services such as tutoring, social media marketing, graphic design, and music lessons during the pandemic because of the availability of cashless payment options.
Children are unable to learn the value of money without cash.
Children can still learn the value of money and how to be financially responsible. Cashless options of payment just present a different mechanism through which the children will learn financial management.
Cashless gives you control over how you trade with the world. It gives you independence.
You have greater freedom to choose where you can purchase your good and if you want to pay in person or online. This has been critical as we attempt to reduce the spread of the COVID-19 virus. Stores were able to facilitate curbside delivery and online payments, which give consumers safer options to purchase.
The benefits of a cashless society?
Many countries are increasing the use of cashless payment options to reap several benefits which include:
- Increased access. Greater access to financial services would provide greater financial freedom and access to a wider variety of goods and services from any part of the world.
- Increased security for citizens. Gone are the days of needing to carry large amounts of cash or needing to watch over your shoulder because you needed to withdraw a large sum of cash.
- Increased convenience. Pay bills or purchase groceries from the comfort of your home without having to dedicate a full afternoon to that activity.
- Improved budgeting and tracking. It is easier for individuals to budget and keep track of their purchases and expenses.
- Easy peer-to-peer transfers. You can get cash to someone in urgent situations without needing to be physically present.
- Improved transparency. Increasing accountability reduces the incidence of counterfeiting, money laundering, human trafficking, and drug trafficking which in turn reduces the need for legal services.
- Improved security. Reduce your risk of crimes such as fraud and robberies, especially when large quantities of cash are held at business places or personal residences.
- Easier currency exchange while traveling internationally. Reduce the need to worry about changing physical notes for international currencies.
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