Imagine an everyday life where every financial transaction happens without cash. Sound far-fetched? It shouldn’t. Many businesses, service companies, financial institutions, and even governments are moving steadily towards a cashless society, where electronic transactions are becoming the norm. It’s not hard to understand why.
There are numerous benefits of a cashless society, such as eliminating the costs of cash handling and reducing the hassles of managing currency. You can even finance your business cashless! We look at the advantages of moving to a cashless society and how it can help your business thrive using digital money.
What is a cashless society?
To understand the benefits of a cashless society, we must learn how it works. A cashless society removes cash paper and coin-based currency, replacing them with electronic payment methods. Electronic transactions include using debit or credit cards or electronic payment services like Apple Pay or PayPal.
What payment methods are there?
In a cashless society, payments happen electronically. You can use the following methods to transact with individuals, other businesses, and organisations.
- Credit and debit cards – One of the most popular cash alternatives is credit and debit cards which you can swipe or tap to make purchases, pay bills, and transfer money.
- Electronic payment apps – You can download apps on your mobile device that act as your mobile wallet. Use them for P2P payments and B2B transactions.
- Virtual currencies – Cryptocurrency or digital currencies are used for money transfers and introduce competition to help keep costs low.
Advantages of a cashless society
One of the main reasons many countries are taking advantage of a cashless society is because they’re simple and very convenient. When you bring a phone or your card with you, you have instantaneous access to your cash holdings. You don’t need to visit an ATM to obtain cash or worry about not having cash on hand to make a purchase. Here are other benefits of a cashless society:
Lower crime rate
In a cashless society, crimes are less likely to happen. Consumers who don’t have cash on hand would be less likely to be targeted by pickpocketers or other sources of street crimes.
Automatic paper trails
Other financial crimes such as money laundering, illegal gambling, or drug-related operations would be much more difficult in a cashless society. These crimes typically use cash, leaving no record of the transaction. However, in a cashless society, these crimes will become easier to target if the source of funds is always identifiable.
Cash handling entails cost. It costs money to print bills and mint coins. Businesses also need to deposit money, withdraw when they run out, and hire companies to transport cash safely. Overall, you must spend time and resources protecting large sums of money and transporting them around.
Easier currency exchange
Travelling with cash can prove a hassle when you need to exchange dollars for local currency. But with a cashless society, you no longer need to worry about the local currency or the amount you need to withdraw because your electronic devices will handle exchanges for you.
Let Bartercard help your business adapt
You can conveniently make financial transactions with another person or business through a cashless society. While the logistics are still developing, it’s clear that a cashless society may be on the horizon.
Make your business benefit from a cashless society! Bartercard is the world’s largest cashless trade exchange. When you join Bartercard, you get access to an expansive network of buyers and sellers who use trade dollars to pay for goods and services. Because handling cash is expensive, you can move to a cashless payment platform that allows your business to save more money. Ready to learn more? Contact us today!