Advantages of a Cashless Society

Added 3 years ago     By Jenine Jay Bufi

Nowadays, more and more countries are going cashless. From paying transportation to buying candy – it’s either people are using their debit cards or mobile wallets. The mobile or digital wallet (sometimes called an e-wallet) is most often an app that can function within a smartphone and aims to replace carrying cash or checks, and stores all your credit and debit cards for you.

The mobile wallet digitises your finances. One of the main advantages is convenience. Some countries have already begun their way to being a cashless society. According to Mastercard Advisor’s Measuring, Singapore’s cashless transaction has reached 61 percent; Netherlands with 60 percent; both France and Sweden with 59%; and Canada with 57 percent.

But what are the advantages of a cashless society?

  1. Less robbery – the percentage of bank robberies in Sweden dropped from 110 in 2008 down to 16 in 2011 due to the fact that most Swedish banks don’t have cash anymore. The elimination of actual cash might even reduce black money and crimes such as money laundering.
  2. Less hassle – bringing actual cash can give people that uneasy feeling. Even credit cards, people must stay cautious because cards hold some personal information. By being a cashless society, the cash that you have stays in your mobile wallet which is possibly safer than actual cash because if ever your phone is stolen, verification processes and security pin will make it hard for those who stole your phone.
  3. Convenience – going out of your way to pay bills won’t happen anymore if you have a mobile wallet. If you’re the type of person who’s always on the go, then you wouldn’t have to worry about your busy schedule because you can easily pay bills, pay merchants, book transportation with your mobile wallet.
  4. Spending tracker – all your transactions will be on your history. If you want to know how your spending habit is going, then simply check your transaction history and take note on which aspect you’re spending more on. Is it food? Your fare? Or bills?
  5. Discipline – the transaction history on mobile wallets will help you keep track of what you spend on the most which would help you discipline yourself whether you need to lower your spending or whatnot.

These are just a few advantages of a cashless society. Some countries are starting to be in favour with this transition because cash trails can sometimes be hard to trace, which can lead to corruption and robbery. With cashless transactions, the government can keep track of digitised payments or other transactions.

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