In the beginning, there was a barter system. Then people found gold and used it as an exchange item. Walking around and carrying tons of gold wasn’t easy, so they replaced gold with banknotes.
As time went by, the banknotes turned into money that we all know now.
And today, we’re about to experience yet another change, the era of cashless payment. We no longer need to carry cash to buy something, as we can use cards (debit card, credit card, smartcard, etc.) and even our own smartphones (Apple Pay, Android Pay, Google Wallet, etc.).
People in China don’t even need to bring those things, as they can pay for everything just with their faces!
But the question is, are we ready to become a cashless society? In this article, we’ll take a look at the benefits and drawbacks of implementing a cashless society.
The Benefits
Less waiting time when purchasing
In a cashless society, waiting in line to pay for something will be a thing of the past. The payment process will be much faster because people can just “tap and go”. Say goodbye to opening your wallet, counting your cash, handing it to the cashier, and waiting for your change.
Lower crime rates
Have you ever seen a movie where the drug cartels pay with a briefcase full of cash? That’s exactly how illegal transactions are done in real life. Paying in cash will leave no digital trail, so it becomes harder to trace the transactions. Criminals can’t do that in a cashless society.
Easier currency exchange
When you go to other countries, you need to go to the local bank and exchange your money to the local currency. In a cashless society, the currency exchange can be done digitally, saving you the hassle of going to the bank and wait in line.
The Drawbacks
Exposed personal data
In a society where every payment is done digitally, it’s easier for the banks and providers to track your personal data. They will know all about your spending habits, how much money you make per month, and every single item that you’ve bought. Not to mention, the risk of getting your account hacked.
Social inequality
The main argument for people who stand against a cashless society is the issue of social inequality. Sure, the system will work perfectly for the upper-middle-class people. But the poor and unbanked will have a hard time surviving because they won’t be able to buy anything.
Technology isn’t perfect
No matter how advanced technology is, it will never be perfect. Sure, it’ll work 99% of the time. But that 1% of glitches, outages, or system malfunction will completely stop the economy. People won’t be able to pay and merchants won’t be able to receive payments.
Wrap up
After analyzing the benefits and drawbacks of a cashless society, we can conclude that we’re not ready yet for that. There are 1.7 billion people in this world who still don’t have a bank account. Some of them are too old and stick to the old ways. While some others live in rural areas where banks aren’t available.
In short, cashless payment works wonderfully as a payment option, not a way of life. People like to have more options, whether they want to pay with cash, cards, smartphones, or even their faces.
Author’s Bio
Brian is a content writer of Milkwhale. He likes to write about infographic and video marketing, as well as other topics in the field of business and content marketing. When not working, he likes to spend time with his family and friends.
