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Cashless Society

A cashless society is defined as an economic system where financial transactions are executed electronically rather than using physical currency. Some ways of electronic payment include mobile payments, credit/debit cards, and cryptocurrency. The trend toward a cashless society began in the 1960s due to concerns over handling large transaction volumes, and has continued to intensify with more countries adopting digital payments. The advantages of a cashless system include increased accessibility, reduced costs for banks and merchants, and decreased financial crimes. However, critics argue that a fully cashless system could diminish financial prudence, infringe on privacy, and create absolute dependence on technology infrastructure. In conclusion, while a cashless system provides benefits, the risks should be addressed and physical cash

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164 views1 page

Cashless Society

A cashless society is defined as an economic system where financial transactions are executed electronically rather than using physical currency. Some ways of electronic payment include mobile payments, credit/debit cards, and cryptocurrency. The trend toward a cashless society began in the 1960s due to concerns over handling large transaction volumes, and has continued to intensify with more countries adopting digital payments. The advantages of a cashless system include increased accessibility, reduced costs for banks and merchants, and decreased financial crimes. However, critics argue that a fully cashless system could diminish financial prudence, infringe on privacy, and create absolute dependence on technology infrastructure. In conclusion, while a cashless system provides benefits, the risks should be addressed and physical cash

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© © All Rights Reserved
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CASHLESS

SOCIETY
A BOON OR BANE?
What is a Cashless Society?
Definition— an “economic concept where financial transactions are executed in
an electronic format rather than using banknotes” ("Cashless Society", n.d)
WAYS FOR PAYMENT
INSTEAD

Mobile Payments Credit/Debit Cards Electronic Payment Cryptocurrency


Services
ORIGIN & TRENDS
Stemmed from an radical idea and vision of
the future in the early 1960s
Primary reason towards a Cashless society was
due "a looming crisis in transaction volume that
could be solved only by eliminating the paper Torre, Inez. (2014, July 9). Evolution of A Cashless Society [Infographic]. Retrieved November 3, 2018,
from the system" (Bátiz-Lazo, Haigh & Sterns, from http://edition.cnn.com/2014/07/02/business/is-a-cashless-society-on-the-cards/index.html

2014) Most businesses and banks refusing


to accept and handle physical cash
The trend seems to be continuing to At leading edge of mobile
payments; having massive abandonment
intensify with more countries taking upon of cash and cards
the change towards a cashless society,
some more advanced than others in this
replacement of payment trend Empowered by government initiative,
digital payments industry has increased

ADVANTAGES Consumers have perceived that cashless


modes of payment are useful as it reduces
time and energy costs 
1) Accessibility & Flexibility With all transactions tracked and recorded in
system, illegal transactions such as money
2) Eliminates Financial Crime laundering and tax evasion would be minimised
3) Reduces Cost for Banks Transporting, handling and storing cash
of G
DP represents a significant expense for
1.5%
commercial banks

Research found that consumer experience less


“pain of paying” during electronic transactions,
contributing to the likelihood of
DISADVANTAGES
overexpenditure
Every transaction made with a plastic card or an 1) Diminished Financial Prudence
online payment network can be scrutinized
without suspicion of a crime, without warrants 2) Infringement of Privacy
or any form of judicial oversight
3) Absolute Dependence on
Technology Structures
Errors or loss of data due to any technical
faults could lead to drastic economical and
societal disruptions

IN CONCLUSION
In spite of the benefits a cashless society presents, the risks and issues
of a cashless society should be resolved.
 There should also not be a completely cashless society due to the
benefits that physical cash still presents

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