Cashless Society: The Future of Digital Payments

 

Digital payments have revolutionized the way people pay for goods and services. With the advancement of mobile apps, users are able to make payments with a few clicks rather than going through lengthy processes and paying in cash. Merchants can accept digital payments through credit card terminals, or other payment service providers such as PayPal or Google Wallet. When you think of it, digital payments are more convenient than cash transactions. Stores don’t need to keep large amounts of cash on hand and customers don’t need to carry wads of bills with them whenever they want to pay for things. In this article, payment specialist Firoz Patel will explore the pros and cons of a cashless society, what the future may hold for digital payments, how much cashless transactions cost retailers, and more.

 

What is a Cashless Society?

In a cashless society, most payments are made digitally. Cash is still used in some areas, such as convenience stores and taxis, but the vast majority of transactions are made digitally. In a cashless society, consumers can send money to each other via phone, computer, or other device, and pay for goods and services with a credit card or other payment platform. Many people including Firoz Patel predict that a cashless society is just around the corner — people are increasingly relying on digital payments rather than cash.

 

Advantages of a cashless society

- Greater financial inclusion - While cashless transactions make up a small percentage of overall payments, they do represent an important opportunity for financial inclusion. Guaranteed access to basic financial services is especially important for the unbanked — people who don’t have any form of financial account. Consumers with a payment method like a credit card, for example, tend to have access to more financial products than those who don’t have a financial account.

 - Increased convenience - Many people prefer to use digital payments because they are more convenient than carrying cash. In a cashless society, consumers don’t have to worry about carrying around large amounts of cash or going through lengthy payment processes. Merchants don’t need to manually calculate prices and take discounts into account when inventory management, either.

 - Lower risk of fraud - Cash payments are more susceptible to fraud than most digital payments. Merchants using digital payments are therefore less likely to experience fraud than those who accept cash. This is especially important for e-commerce businesses that rely on online sales.

 

 

The Future of Digital Payments

While it’s likely that a large percentage of payments will be digital in the future, people will still use cash as well. As long as there are people who value privacy and prefer to use cash, there will be a place for both forms of payments. Digital payments have come a long way since the days when you had to log onto a computer to make a purchase. Today, you can pay for goods and services using your phone, tablet, or computer. In a cashless society, consumers can also pay for things like public transport tickets, music subscriptions, or even fast food with their digital wallets, explains Canadian businessman and fintech expert, Firoz Patel.

 

Conclusion

As the popularity of digital payments increases, it’s important to understand the advantages and disadvantages of a cashless society. A cashless society can be very convenient, but it comes at a cost to businesses who don’t accept digital payments. Additionally, a cashless society leaves people vulnerable to surveillance and lack of social benefits. In the long run, it’s likely that a large percentage of payments will be digital. This will open up new markets to merchants and increase convenience for consumers.