It’s no secret that a cashless society is on the rise. In fact, many countries are already well on their way to becoming cashless societies. There are many advantages to this type of society, but what does it mean? How do we continue to accommodate a cashless world?
What’s a Cashless Society?
Go back 50 years and the prospect of a cashless society would have been laughable. We’ve come a long way since then, with the advent of credit and debit cards, online banking, and mobile payments. With this in mind, the definition of a cashless society is one where these types of transactions are the norm, and cash is used infrequently or not at all.
Benefits of a Cashless Society
Since the business world is split into two, we’re going to do the same to explain the benefits. As well as taking you through the benefits for businesses, we’ll also go into the advantages for individuals.
For Businesses
Increased Efficiency – One of the main advantages for businesses is that it’s more efficient; not only are cashless transactions typically faster, but it also reduces the amount of time spent on accounting and administrative tasks.
Reduced Costs – A cashless society can also help businesses to reduce their costs. For example, they no longer need to pay for things like security, insurance, and transportation of cash. Instead, it’s all numbers on a screen.
Better Customer Experience – Thirdly, if each transaction is quicker it stands to reason that the customer experience is improved. No one likes waiting in line, so if you can reduce the time spent per customer, it will reduce customer attrition and boost your reputation.
For Individuals
Increased Safety – In many ways, it’s simply safer to not carry around cash. If you lose your wallet, all of your money is gone. But if you have a credit or debit card, you can cancel it and get a new one. As soon as you lose your wallet, you can phone your bank and have all cards paused. With many banks, you can do this using a banking app within just a few moments.
Less Stress – Furthermore, worrying about losing cash can be stressful. It’s one less thing to worry about if you don’t carry any.
Better Financial Planning – Using various apps and banking apps, you can see exactly where your money is going. This makes it much easier to budget and save compared to withdrawing and spending cash. With cards, many find it easier to track progress and make changes as needed.
Accelerating a Cashless Society
In truth, the cashless trend has been accelerated by a combination of businesses and consumers. As more consumers pay using mobile phones, smartwatches, and cards, businesses accommodate them with advanced payment systems. For example, this includes EFTPOS systems – it’s also worth mentioning the payment providers offering a fee-free merchant account to businesses. In turn, consumers see that paying with other means than just cash is more efficient and the cycle continues.
In the coming years, we will see even more businesses implementing card payment options. For instance, this is already happening in public transport and some countries are even looking at the possibility of eliminating cash altogether. Not so long ago, the prospect of shops asking for card-only transactions would have been absurd. But as time goes on, it’s becoming more and more of a reality. After all, there are plenty of advantages that both businesses and consumers enjoy.
