There are many pros and cons of a cash free society also known as cashless society. Its a society where people prefer not to keep cash with them. As far as the many benefits are concerned. Importantly, it indeed helps a great deal in lowering the crime rates. Practically, as there is no tangible money to steal. Helps significantly in decrease in money laundering. Hence, as well as easier currency exchange. Keeping cash is a hassle for many people these days. Obviously, as handling money and security are the two major concerns. Therefore, its less time and costs associated with handling, storing and depositing paper money.
On the other hand not keeping cash also holds some threat levels which can also be termed as ‘Data breach’. For some people who are ignorant potential data breach may expose personal info. There are also hacking risks as there is no alternative source of money. People who are not so literate in terms of technology aspects. Hence, for them, there can be tech issues. These are substantial issues that could impact access to funds. Finally, disadvantages of a cashless society also means that the temptation to overspend may also increase.
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Some of the most prominent and big economies that are also a huge example of cashless societies are Sweden and India. These are tech giants, which are two notable economies with absolutely different outcomes. One of them, i.e. Sweden is the country which ranks number one in terms of the usage of internet.
What exactly is a Cash free society?
A cash free society is one where cash is not used that often. Alternatively & realistically, the amount of cash used holds lesser probabilities than otherwise. Instead, there are some alternate mode of transactions that includes electronic transactions. That is, using the debit or credit cards. Alternatively, other payment services like Paypal, Zelle, Venmo and Apple Pay. All these mode of payments are an alternate to cash transactions.
Therefore, in a cashless or cash free society, the use of ATM is considered to be on a very low side. Obviously, as cash is dispensed from the ATM. On top of this, a cashless society preferably doesn’t contribute much to cash. Ironically, the concentration of ATMs or Automated Teller Machines in a cashless society is on a far lesser note.
Who Are The Ones Who Need A Cash free Society Most?
A cash free society is a need for especially those who prefer not to carry cash with them. It would definitely benefit certain businesses. Especially, e-commerce and online ones. In a cashless society businesses benefit from processing fees. Obviously, when the consumers use their apps and the services for the sake of sending and receiving payments. It’s also good for the businesses. Hence, as for businesses cash handling can be challenging. At the same time helps businesses save money. Furthermore, makes transactions easier to track. The tracking money option for businesses makes it securer. Hence, as well as an option where you shall have a record in form of an e-receipt.
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There are many countries that want to convert themselves towards being cashless societies. Primarily, with the help of both consumers as well as the government bodies. A huge reason for this is amount of advantages associated with cashless societies, as compared to its disadvantages.