Technology has enabled us to create opportunities for ourselves and to make this world a safer and secure place. Going cashless in today’s time doesn’t require a lot of effort. Time and time again we’ve witnessed the convenience of going cashless, whether it’s at a grocery store or a petrol pump.
The Pros of Going Cashless
Having access to all your savings without any tangible money in hand is the most reassuring benefit of going cashless. All you need is your card or phone and you’re good to go! Let’s take a look at more benefits of living in a cashless society.
- Computerized Paper Trails
Have you ever watched a crime show where a drug lord was sent money in exchange for drugs through online transactions? That’s not possible, because digital transactions track the trail of money. With cash, there is no record of a transaction happening, making money laundering, illegal gambling, and tax evasion a huge possibility.
The source of money and the paper trail is always identifiable through cashless transactions, making it a safer bet for any payment you get. Not only do you have a stored track record of the transaction, but you also don’t have to worry about tax evasion or hidden income with automatic paper trails.
- Lower Risks
It’s easy to become a strong target for criminals when you carry a lot of cash. Since there’s no automatic paper trail involved, there’s no way to track or know who took your money and where it went, if stolen. On the other hand, if a credit card is stolen or a mobile wallet is hacked, it’s easy to block it remotely. Digital payments offer more security and safety.
- Simplified International Payments
Going cashless is a great benefit especially for travelers. The last thing you want on your trip is to lose cash. Every country has adopted new modes of payment, supporting cashless transactions and security. International payments are more simplified thanks to cashless transactions. The best part about it is that you never have to worry about carrying cash to exchange currencies. Just use your mobile wallet or credit card!
- No Cash Management Needed
Imagine hoarding stacks of cash and having to spend more on resources to protect and handle them. Sorting and managing cash becomes inconvenient at one point and it’s important to understand that everything costs money in today’s time. Whether you’re spending time fishing for resources to handle large sums of cash or purchasing resources to manage the cash, cash management requires effort, time, and money.
Not only do you need to look for the right resources, but sorting and breaking down cash is another task in itself. Whether it’s as simple as paying your AT&T TV Package fee for more TV entertainment or as time-consuming as paying your monthly rent and bills, managing and sorting your cash for funding and credit isn’t easy.
- Controlled Spending
Since every digital transaction is recorded and tracked, it’s easier to track your spending, making it easier for you to draft up a budget. The more you know about your spending budget and patterns, the more you’ll control and manage your budget effectively. You can find multiple apps and tools to help you analyze your spending pattern and habits which give you a better insight into what you should and shouldn’t do financially.
Cashless transactions lead to controlled spending, and controlled spending leads to greater investment. With the loose change in your wallet, there’s a higher chance of you spending it on a small cup of coffee, or candy, or your favorite snack. This is known as the latte factor. With cashless transactions, you don’t have to worry about irregular cash flow and spending on unaccounted things.
- Unlimited Discounts
You can earn so many discounts on multiple services with your credit/debit cards or mobile wallets. Restaurants, retail stores, healthcare, lifestyle services, or travel services offer special discounts on digital payments. Take advantage of this benefit and save up using cashless payment modes. You can also stack up on loyalty points and redeem the benefits later on.
The Cons of Going Cashless
Where there are pros, there are cons. It usually depends on your perspective. With security as a major concern, many people deem going cashless to be more tricky than useful. Let’s take a look at all the reasons why going cashless isn’t the right move.
- Exposed To Malicious Hackers
Being exposed to hackers in this digital age is a major concern for everyone using the web. If anyone breaches your privacy, hacks your account and drains your savings, there is no possible way to recover that money.
- Major Privacy Concerns
Cash payments are un-identifiable and private as there is no paper trail involved. For that very reason, relying on digital payments sacrifice privacy. Digital transactions on the other hand are tracked, so the more security details you have floating around, the more chances you have of becoming a target for malicious hackers. With cash, you can send and receive the money anonymously and privately.
- Technology Problems
When you’re completely dependent on your digital transactions, you must be ready to deal with tech glitches, errors, and mistakes that cause delays in payment processing. Sometimes you might get stuck with no access to any money. System malfunctions are a common occurrence living in a digital age. Even a dead phone can stop you from buying things in today’s time.
- Increased Temptation to Spend
With loose change and cash in your wallet, you’d know when to stop. When you’re out of cash and don’t have any money to pay for anything, you cannot overspend. You can keep a limited amount of money in your wallet that you can spend on things. Once you’re out of cash, you can’t overspend. This maintains budget control.
With digital transactions, your temptation to spend more on things can increase. Paying with your card or mobile wallet is as easy as 1 2 and 3. Just click, tap or swipe and you’re done. Electronic payments are time-saving and easy, which may push you to overspend on the go.
To Wrap It Up
Going cashless is a decision that is supported by cards and mobile devices, making the evolution of this society a huge possibility. With convenience as a significant factor in today’s time, it’s still difficult for people to completely trust convenience due to security risks. Either way, many countries are evolving and making decisions to eliminate the use of cash.