bankingciooutlook

The Need for a Cashless Society and Means to Adapt

By Banking CIO Outlook | Tuesday, April 09, 2019

Businesses are constantly evolving, and humans have predominantly used cash to buy and sell goods and services. Technology has changed consumer behavior, and the government makes new rules and regulation that will comprehend the change. Payment shift from cash to digital means has paved the way for the rise of e-commerce and mobile payments. Businesses are posed with new opportunities and threats due to the world moving towards a cashless economy. Countries in northern Europe are quickly moving toward a cashless society, and the governments are also supportive in ending paper money. In Sweden, some stores reject cash and have “no cash accepted” signs.

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India’s sudden ban of 500 and 1000 rupee bills disrupted the emerging country’s economy, and instead of curbing tax evasion and illegal activities, the move started India’s digital payment ecosystem. Cashless society provides convenience and security to users. Businesses security is a significant issue, and costs to keep money safe in on-site safe and secure transportation from business location to banks makes the business vulnerable to theft, embezzlement, and robberies. Accounting for security is both taxing and expensive. Governments provide incentives to drive for a cashless society and law bodies are the ones to initiate these laws and regulations to prohibit cash. By banning the use of cash, frauds can be eliminated in the society because fudging of number cannot be done when all the payments are electronically made. Cash is traceless and anonymous, making it ideal for illegal activities—a reason why the government is always on a lookout to eradicate cash.   In a cashless society, mobile devices can be used to manage all transactions and money.

There are, however, few complexities in completely banning cash—cash transactions keep the user away from surveillance. Holding liquid cash will reduce the risk of being prone to hackers. Cash is free to use and readily available making it convenient for users.

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