The topic of creating a cashless society has been kicked around a few times in recent years, but the major mind shift has not happened just yet. Some industry experts are even wondering whether or not a cashless ecosystem is realistic or not. With so many electronics payments – and digital currencies such as Bitcoin – at the consumer’s disposal, it seems to be a matter of time.
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The Era of Cashless Payments Is Here
There is no denying consumers are slowly gravitating to a world in which cash transactions are becoming less frequent. Even though there is a personal aspect to cash transactions around the world, a lot of consumers prefer to pay in a more convenient way. Card payments and mobile solutions offer them a way out of the cash ecosystem.
The United Kingdom is one of the countries where the number of digital payments overtook the number of cash payments in 2015. Despite the gap being fairly small – 52% vs. 48% – industry experts see this shift as a major milestone for cashless payments. Additionally, the trend is likely to continue, as a survey showed how most British customers carry less than GBP 20 in cash on their person at any time.
It is no secret how carrying large amounts of cash can be seen as a personal security risk. Theft is on the rise all over the world, and both consumers and businesses need to take proper precautions when dealing with cash payments. Plus, cash payments are completely anonymous, making it easy to use for less-than-legitimate dealings.
Furthermore, there are the appeal credit cards present over its cash counterpart. Consumers are more likely to make large purchases with a card compared to cash. But there is an advantage to retailers as well, as card payments offer them a source of information to create more personal promotional offers, and measure consumer loyalty.
Last but not least, there is no direct need for traditional financial services to create a bank-like ecosystem for consumers.Prepaid cards, which can be issued by just about anyone with a proper license, give consumers an option to experience electronic payments without owning a bank account. This type of card will also prevent users from going into debt as they can not spend more than their balance.
Bitcoin’s March Does Not Go By Unnoticed
Alternative financial solutions, such as Bitcoin and other digital currencies, are making it that much easier for consumers to move away from a cash-dominated lifestyle. Electronic payments have never been more accessible or convenient than they are right now.
Bitcoin has one major advantage over its competitors, though: it operates around the globe in the same and cheap fashion. Other electronic payment solutions are not available everywhere, and some of them might carry a higher transaction processing fee. Bitcoin is available to everyone in the world, and fees are paid by the sender, not the recipient.
What are your thoughts on evolving to a cashless society? Will Bitcoin adoption benefit from this mind shift? Let us know in the comments below!
[Partial] Source: Finextra
Images courtesy of Shutterstock, IB Times
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