Electronic payments have become very popular in a short period. With the COVID-19 pandemic, electronic payments are considered a better choice than a physical payment.
Cash-based transactions are mostly found to be unsafe, expensive, inconvenient, inefficient, and lack transparency for governments, companies, and people. Using paper money is also a barrier for many services in the world today. A cashless society, therefore, has many benefits in the present world and while moving to the future.
A few advantages of going digital and cashless are:
- Hygiene friendly: Digital transactions do not involve any physical contact. Viruses and bacteria can stay on coins and paper currency for almost 48 hours. This is one of the main reasons why digital payments are preferred especially since the COVID-19 pandemic.
- Faster transactions: Digital payments are faster and save a lot of time. Just by using digital payments, it saves you from going to collect the money for making the payment. It means you need not stand in queues to make withdrawals or payments. Your physical presence is no longer required while using digital transactions. You can also do it from anywhere if you have a smartphone and internet connection.
- More organized: Digital payments are well organized and easy to use. It can be done by anyone from their accounts. It helps people to easily track their spending. Various apps and tools also help in creating an efficient budget. It also helps save a lot of money.
- Reduces crime and is transparent: Carrying cash along with you everywhere can be worrisome. There are chances of theft. Even in shops and small businesses, they need not take the pain in constantly keeping an eye on the cash boxes. All transactions are recorded and this reduces the chances of corrupt practices. It also reduces tax evasion as the authorities get records of the payments. It also reduces black money.
- Financial Inclusion: Digital payments will help poor people and women to actively engage in managing their finances. It helps them to save money and acquire financial freedom and security. This way, they will be uplifted.
- Discounts and coupons: While doing digital transactions, you can earn coupons and discounts. This helps in saving money. There are also cashback offers by many financial service apps like PayPal.
Going digital is one character of a progressive society. Even though it has disadvantages like privacy issues, risk of losing smart phones and hacking, digital and cashless payments are more preferred in the developing world. It is a way to reduce poverty and can be used by anyone not just regionally, but internationally.
