Is Cashless the New King? – Cashless Society Explained

Is Cashless the New King? – Cashless Society Explained


When leaving your house there are three items that you normally bring along, your keys, wallet and phone. But as society becomes increasingly digital and cashless these three items are slowly becoming one item – your phone. Let’s explore why cashless is the new king and what we can expect in the coming years. Right now everyone knows what cold hard cash is. They are the paper notes and shiny coins and they are universally understood to denote value. On the flip side, cashless payments are becoming the new norm. They come in many forms, from credit cards, debit cards, to digital wallets and most commonly your phone. Nowadays, you can use your phone to pay for almost anything, from ordering a taxi, paying for food and even buying drinks from the vending machine. In fact, in China mobile payments are so popular that most Chinese have almost no money in their wallets and they don’t care simply because they can survive without cash since almost everything is cashless using the WeChat app. Even beggars in China are using mobile apps to accept donations. So the next time a beggar approaches you in China, you might not be able to tell them “sorry no change”. It is projected that by 2020, six billion people around the world will have a smartphone and that may be all you need to pay for things in the coming years too. Now you might be wondering how cashless payment works. Majority of these cashless options make use of near-field communications or NFC technology, which allows devices to communicate and transfer data using radio waves? Its introduction in 2003 marked the beginning of the cashless revolution with 233 billion non-cash transactions reached in 2006 and more than doubled in 2016 with almost 500 billion transactions in just 10 years, but why did it grow so rapidly? Humans by our nature are hardwired to be lazy and seek convenience. Some say “necessity is not the mother of invention laziness is” Therefore the reasons for migrating to cashless payment is driven by convenience. The one thing consumers can never get enough of. It’s in every business interest to give the consumer what they want and cashless technology has simplified not only the payment process for consumers but business operations for merchants as well. Singapore for instance have launched their own fund transfer service called ‘Pay Now’ as part of its national digital blueprint to encourage businesses to go cashless. Without the back-and-forth of money handling and the risk of storing physical cash, cashless transactions also improve accounting and eliminate ordering inaccuracies. All these upsides are why businesses worldwide are keen to move towards cashless technology. Many governments are moving towards this as well. The date is 23rd September 2009 in Stockholm Sweden. A band of robbers hopped into a stolen helicopter. They fly themselves over a cash service Depot building in the neighborhood of Västberga, lowered themselves onto the roof and within 15 minutes escaped with almost 6 million USD worth of cash in their bags. To this day the vast mega helicopter heist has exactly been solved but has sparked a nationwide outcry for safer means of cash storage. Fast-forward almost 10 years later, Sweden is currently the most cashless society in the world. Out of all of Sweden’s retail transactions, only 20% of them are made in cash. From groceries to magazines and even buildings you can buy just about anything without cash. The mass digitization of Sweden’s cash has not only improved safety, preventing heist like the one in Västberga, but brought about unmatched convenience for the Swedes. And they aren’t the only country looking for safer alternatives to cash. In India, the push for green cashless is cured by political agenda to eliminate the flow of undeclared black money and fake currencies alongside other efforts to promote a more cashless society. In late 2016, the Indian government announced that the monetization of high-value 500 and 1000 rupee notes in a move to tackle drug and terrorist activities. On the other side of the world in the U.S. businesses, like sweet green a salad chain have adopted a completely cashless payment system and found vast improvements to Customer service sped up transactions and improved security. However, some countries such as Switzerland a still resistant on going cashless partially due to conservative spending habits where only 0.2 percent of all transactions were done through smartphones in 2016. Not to mention the SD millions living in urban cities such as the u.s The student have a smartphone that we take for granted and billions living without the internet or with poor internet connectivity Cybercrime has also been on the rise, growing by the thousands with each passing year and by going entirely cashless, It opens up more opportunities for cyber crimes where hackers could do your entire life savings with the push of a button or tap of a screen. Customers and merchants also had to pay transaction fees up to 3.9 percent which can heavily hurt the cash flow of businesses. To tackle these challenges, more regulations are happening to ensure a smoother integration into our society Such as the cashless retailers Prohibition Act introduced in the U.S. in mid 2018 This bill will make it illegal for businesses to not accept cash or charge customers differently based on their payment method. The argument by Washington DC Councilman David Grosso one of the people pushing for this bill is that “by not accepting cash, you will be systematically excluding groups of people such as the underbanked from patronizing your business” Estimates do show that around half of the world is underbanked and can’t use cashless payment methods. So if every country were to go cashless globally we would be leaving half the human population behind Thankfully as new challenges in going cashless continues to arise, solutions to those challenges arise just as quickly. A couple of years down the road when you leave your house you may only just grab your phone because that may be the only thing you need. Thanks for watching our first video at Thoughtmosphere, where we make animations explaining current affairs happening in our complex world and how it affects you. We hope you found this video enjoyable or helpful and we are working hard on creating more videos for you guys. Feel free to subscribe like and let us know in the comments what else you would like us to explore!

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