Most Vital Benefits and Disadvantages of Cashless Transactionsby Tech Geekk writer
The evolution of technology and the revolution it has brought along has been for everyone to see. So widespread its impact has been across our society that a plethora of its aspect has been fundamentally transformed. Case in point: payments and transactions. From being entirely cash-dependent, we have come to an end where a substantial majority of people make only cashless transactions. Don’t believe it? Well, a recent study found that only 14 percent of operations for all varieties of purchases involve cash. It’s quite telling of the world’s preference. This massive change has also been boosted by global governments’ push for cash-free transactions and digital economies in general.
And even though this noticeable shift in how we pay for things today is crucial, the fact remains that one must take a step back and see for what it’s worth. It is especially true for companies; such benefits primarily offer only benefits for users; that much is abundantly clear. But what about companies and businesses in the world? How are they affected by this transformation? In order to do that, we have put together a handy list of benefits as well as disadvantages of cash-less transactions. Here goes.
• Security: One of the biggest problems with cash is that it is incredibly prone to theft. Then there’s also the fact that it is a quintessential part of illicit trades and businesses, such as drug trade, and more, since it offers freedom from any legal records. However, cashless transactions are pretty much the death knell for criminal activities. Say, your credit card gets stolen — you have to block it and get a new card issued, and it’s sorted.
• Convenience: This one is quite obvious — no longer standing in queues at the ATM or the bank to withdraw cash. Swipe a card or tap a few buttons on your bank’s app or perhaps another payment app and voilà!
• Seamless international payments: Whether you have to make a payment to an entity based in another country or maybe you are traveling in a foreign land and need to pay for a purchase. Either way, you are saved from a tedious process and can be done with it in a matter of minutes, more or less.
• Slightly expensive: While it is undoubtedly convenient, using electronic modes of payment means you will also be required to pay a convenience fee or some such.
• Privacy: When you use a card or a fund transfer app, you are sharing highly sensitive data. That, automatically, is accompanied by a certain amount of risk, no matter how secure your bank or other entities that enable digital payments to assure you about their security.
Certain disadvantages accompany cashless transactions, but the benefits of this phenomenon easily outweigh them. That is why experts believe the popularity of electronic transactions is not going to wane anytime soon and businesses would do well to get on board!
Created on Mar 2nd 2020 04:16. Viewed 171 times.
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