The cashier impatiently taps on the counter as the customer hurriedly and meticulously tries to fish out the right number of notes and coins to make their payment.
Don't you think the days where such a scenario occurred are getting increasingly distant day by day?
Today, with a mere tap or swipe of a phone or card for payment, cash almost seems archaic.
Is this the start of the doom of paper money?
Are we headed towards a completely cashless society?
The Beginning of a Cashless Society
While the idea of a cashless future may seem a bit daunting and too futuristic, it is undoubtedly quite convenient.
With credit and debit cards and mobile wallets such as Apple Pay and Google Pay, contactless options are everywhere.
As per the Global Payments Report, cash accounted for just 20.5% of global POS transactions in 2020.
If you've ever used them, you cannot deny their speed, accuracy, and convenience.
For this reason, cashless transactions are becoming popular worldwide.
Several other factors fuel this trend, such as:
- Security: Cashless modes of payment offer a high level of protection without you having to worry about your notes and coins getting stolen or misplaced.
- Transparency: Cashless transactions are an easy way to keep track of payments, further contributing to security.
- Increased Efficiency: There is no denying the speed of cashless transactions. Just a mere tap or swipe and you can forward hundreds of notes to the payee.
Is a Cashless Society as Convenient as It Sounds?
While the boons of a cashless future are quite appealing, several drawbacks raise serious concerns.
Here are some challenges that a completely cashless economy may bring with it:
- Privacy Concerns: Digital transactions can collect a vast amount of data regarding consumer behavior. Complete reliance on digital transactions could potentially lead to misuse by businesses and governments and could lead to a lack of control over our personal and financial data.
- Impracticality for Certain Populations: It is important to consider that not everybody has the same level of access to technology or digital literacy for completely cashless transactions. For instance, low-income groups, rural populations, and older people would struggle to participate in the economy of a cashless society.
- Lack of Reliability: Imagine not being able to use your car, buy groceries, or make an emergency transaction merely because a payment network is down. In such situations, cash becomes necessary. A cashless society would be extremely vulnerable to technical difficulties.
- Lack of Financial Control: Some people debate that the ease and intangible nature of digital transactions encourage impulse buying. Moreover, solely depending on digital transactions may make it difficult for those trying to keep track of their spending habits and aiming to curb their expenditure.
Where Are We Headed?
Unfortunately, our dynamic society's financial future remains uncertain.
Cash could become an antique trapped in the past, or it could continue to be used during specific times or by particular demographics alongside digital options.
While the convenience and speed of digital transactions are undeniable, there are concerns regarding accessibility and privacy.
Ultimately, the debate on whether cash will be doomed depends on the advancement of technology and consumer preferences.
What do you think? Is cash going to disappear in our current digital world, or is it going to stay?
Share your thoughts and ideas in the comments below to get the conversation flowing, or feel free to reach out to us at larra@globalindiannetwork.com.
