Towards a Cashless Society: the Impact of Digital Payments

Banking CIO Outlook | Thursday, June 27, 2019

While dwelling between the possible pros and cons to fixing financing and banking, cashless society might be the reality we are heading towards. 

FREMONT, CA: The new world is heading towards overall digital transformation, which also includes the flow of the economy. While the market is flooding with numerous online payment portals, cash payment is slowly declining. Let’s note for a moment, how many times do we prefer to carry cash and pay at the retail store? As the introduction of the cashless economy brings a lot of benefits, it also avails unnoticeable cons for the socially economic standards. Putting the topic in a practical note- the cashless economy has the potential to eliminate the flow of liquid money or paper currency, giving the authority to a third party or platform for all your transaction whenever needed.

The significant impact we can experience is the growth of efficiency for both the consumer and merchants. Payment portals offer a track of paid bills, even the failed transactions whenever & wherever in need, easy and fast transactions no matter how large the amount is which simultaneously reduces the risk of pickpocketing. As digital purchases are easy to trace, illegal payments are harder to commit, reducing the crime rate.

How much secure is our money while performing online payments? The concept is already contributing to the development of our banking system. With easy access to the transaction traces, it will be difficult for anyone to evade tax, improving the tax cycle for the people welfare. The Tab-and-Go payment system has created a hassle-free and fast environment, but it’s equally scary in terms of economic security. Daily usage of sensitive information like account details, passwords, and debit or credit cards carries the possibilities of getting hacked or cyber attack, leaving you with zero balance within seconds. As digital economy means trusting a third party for keeping your money passes the possession if the coming day brings in any economical stress to the organization or country, we with no cash might be in helpless scenario.

An increase in the digital transaction surely makes the economy infrastructure more convenient for most of us including the government, banks and organizations.

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