Talking about cash is always an interesting topic to discuss. Cash used to come in the basic amenities in the early 2000s but now all we talk about is cashless transactions and online payment Apps. So, what about cash- will it vanish or remain here with less significance?
Cash has been around for centuries and is still the most commonly used form of payment in many parts of the world. With the rapid advances in technology, many experts believe that cash is slowly becoming obsolete. In the future, cash will likely be replaced by digital payments such as plastic cards, e-wallets, and online payment solutions.
We already know that the digital revolution is transforming currencies and finance. Contactless payments have already sabotaged the physical payment market. The pandemic puts fuel to the fire in disrupting the cash market. If you take a long view at the future, you will see the cash days are numbered.
Let’s look at the reason;
- Growth of electronic payment methods
Card payments are always in the game with the physical payment market. However, bank transfers, direct deposits, and online transactions made payment transactions fast, convenient, and secure. The growth of electronic payments made it possible for the sender and recipient to receive or send money even when they are a thousand miles away. Nevertheless, in a way electronic payment travels better than cash.
The 2015 study by the Federal Reserve reveals the augmentation in electronic payment methods:
Noncash payments in the United States are estimated to have totaled over 144 billion with a value of nearly $178 trillion in 2015, an increase of nearly 21 billion payments or about $17 trillion since 2012. From 2012 to 2015, total noncash payments increased at an annual rate of 5.3% in number and 3.4% in value.
- Secure and reliable
Online payment companies have a greater array of security tools. While making online payments your transactions are mostly encrypted and are protected by SSL certificates and regular system scans. For security, customers can create strong Ids and passwords for their account. They can use these credentials to carry out transactions and make it secure and safe.
- Transaction records
With electronic transactions, you get an automatic transaction slip of every payment you make. The slip contains the amount you have spent, where did you spent, and remaining balance in your account. These transactions slips also have a unique transaction id to help you whenever you faces complication in the payment.
Cash-free transactions help you in no more frantic ATM stops or dollar bill counting. Electronic payments come in handy while traveling. Swiping a card or an online payment can be a savior when you are in a tight schedule.
Many believe that a cashless society is obligatory but there are some significant reasons that cash will always remain in the society.
When you pay online you may think you have access to more money, and easier to spend. While spending tangible currency (cash) can limit your overall spending. You’ll be able to spend less while carrying cash than paying online.
- Transactions can be complicated
Many vendors still have cash-only policy or use credit card minimums to send or recieve payments. Some smalls restuarants or services like laundromats are good examples of cash-only policy. While there are many countries that doesn’t use online payments thoroughly. Depending on where you are, spending cash can be more convenient than online transactions.
With the immense popularity of online transactions, we can say that cash can disappear in the distinct future but only for those who have the luxury of enjoying online payments. Small services or poor people will uses cash as a medium of payment.
Digital payments are becoming more popular, but cash still has its place in certain situations. It’s impossible to predict what the future of cash will look like, but one thing is certain: cash isn’t going anywhere anytime soon. Regardless of what the future holds, it’s important to remember that cash is still an important part of our everyday lives. So whether you use cash or digital payments, make sure to use it responsibly and enjoy the convenience and security that both of these payments.