Cashless payment is giving rise to a significant shift in the way we transact. Ever since the introduction of debit and credit cards systems, we are gradually losing the habit of using cash. A survey by TSYS in 2014 claims that only 9 percent of Americans prefer paying in cash, a majority of them preferred cards and other payment methods. This depicts cashless payments as an exciting arena to watch in this digital world.
The era we’re living in is more digital than ever. Computers and smartphones have changed a lot in how we function daily. A cashless society might sound like science fiction, but we’re already on our way. Several powerful forces are on a mission to create a cash-free world, including significant governments and financial services organizations. Below are a few of the exciting trends in cashless payment systems.
1. Growth of Digital Wallets Utilization
Few of the top peer-to-peer (P2P) payments companies have pioneered online money exchange between users and have served as an alternative to cards and checks. This is because of the ability of smartphone apps that enable payments, both online or at any physical store, with the help of technologies like Bluetooth, Near-field communication (NFC), and much more. It is easy for a customer to make secure payments by linking the bank account and credit cards to their digital wallets.
2. Results in Less Crime
Carrying cash makes it easier for robbers to steal money, regardless of the amount you carry. Also, several illegal transactions, like trade, drug money, usually take place with cash to avoid traces of operations. Using E-wallets reduces these activities and can result in less crime as there is a complete transaction history between all the entities. The cashless payment technologies have made the act of buying, selling, and transferring money more comfortable than ever.
3. Paper Trails
Using a digital payment system is reducing the rate of financial crime. It is impossible to hide income and dodge taxes when there’s a complete record of all the payments an individual has made. This can also make money laundering much harder if the source of cash is always available. It also helps people to keep track of their spending. Online payments also help while filing income tax returns. In case of an investigation, people will find it easy to explain their expenses.
4. Reduces Hassles of Cash Management
Printing bills and coins cost a lot of money and make it harder to manage from time to time. Businesses need to store the money, get their hands on more money when they run out, and load cash to banks when they have too much on hand. Moving so much cash around and protecting money could become a thing of the past by using digital wallets. With the help of ease of online transactions, it is easier to manage cash and stay out of the hassles faced while handling money.
5. Entertains International Payments
Digital wallets can come in handy when you visit a foreign country, and you may need to buy local currency. Payments can be secure if both nations support cashless transactions. E-wallets in your mobile devices will help you figure out how to pay when there is a difference in using currencies. Few of the money orders can take days to reach, but with the help of digital payments, it can be done instantly and that too with just a tap of a few buttons.
The cashless payments are set to continue, as many of us are being drawn to the convenience of not having to use cash everywhere we go. We are witnessing constant innovation in making payments go completely cashless. A few of the organizations are making possible efforts to make this happen. Business owners today would be wise enough to keep track of cashless payments as they’re creating new opportunities and offering more benefits.