While it is true that we are moving more and more towards a cashless society, there are still many places where cash reigns supreme. This is largely due to habit and fear, both of which are understandable reasons. The risks of a cashless society are many, but most of those risks are outweighed by the benefits. The biggest risk of a cashless society is that thieves can steal your assets without you even knowing it. This may be true, and we must also consider the way we handle our assets and in general, people need to start taking greater precautions with their phones and other portable items. That being said, we should not forget that bus and taxi drivers, as well as kiosk and other over-the-counter employees, are always at risk of robbery because they accept cash payments. This is one of the primary reasons that the Nordic countries have taken significant steps toward becoming a cashless society.
Let’s take a look at how cashless payments work and who it affects. Anyone who makes payments or sells products online will find this article useful.
Why Societies Are Switching to Cashless Payments
There are a few reasons why societies have started to switch to cashfree and contactless payments. One reason is that it’s faster and more convenient than traditional methods of payment like cash or checks. Another reason is that it’s more secure, as contactless payments are less vulnerable to theft or fraud. Finally, it’s also environmentally friendly, as it eliminates the need for paper receipts and cheques. The pandemic made contactless payment options more urgent. MasterCard has conducted a study of the pandemic’s impact on the choice of payment method in the UK and Europe in general.
- Eight out of ten payments with MasterCard cards in European countries are contactless (78%)
- 17% of the UK population rely on cash
- 42% of Europeans began to use less cash, and 17% ultimately refused to settle in cash
- 73% of Europeans say they will use contactless technology in the “post-coronavirus era”
New financial system
The modern financial system was created for the convenience of employees and employers. Example: It’s not a problem to hand out salaries in cash when the company employs only a few specialists. The accountant will quickly calculate the monthly salary and transfer it to the employee. But imagine the real scale of modern companies: each of them employs hundreds or even thousands of people. If all of them were paid in cash on the same day, there simply would not be enough time and low accountants to distribute money.
Besides, such a financial system is beneficial to the state. This allows you to monitor the legality of the activities of every citizen who works officially. This is useful for society. Let’s imagine our situation from the financial side. We work honestly and pay taxes; we get quality treatment and education, a comfortable living standard for these taxes. All of this directly affects our happiness. It turns out that we are great and have every chance of a quality, long, and happy life!
The new technological era is changing our world a little every day. This is happening gradually and imperceptibly, but let’s think about it:
- Our smartphone can contain a whole mobile bank. We can pay for purchases, take loans, and arrange instalments via a mobile phone. Also, most financial problems can be solved online from a mobile device.
- We can pay for services and goods on websites. The FinTech industry has changed the concept of online business. Online financial systems are automated, convenient, reliable, and safe.
How Quickly the Economy Will Completely Change Towards Cashless Payments
We have already made a more than 50% shift to a cashless economy without even realizing it. To go to a store, cafe, or pay for public transportation today, all we need is a smartphone. Casinos are the most recent industry to join the trend, with cashless casinos expected to become a reality in Australia and Canada in the near future.
However, there are still orbs and places where cash is still king. For example, older people use the cash more likely. The main reason for this is the force of habit. Many people are just used to seeing money in front of them, holding it in their hand, hiding savings under a mattress, and so on. These are classic and understandable reasons.
Also, some people (mostly older) are afraid of sharing personal data over the Internet. This is also an understandable reason because not everyone fully understands how cashless payments work. Many scammers on the Internet are looking for kind people who do not know much about online technologies.