Most Vital Benefits and Disadvantages of Cashless Transactions

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.

    • 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.

    • 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.

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