Cashless society: The change from cash payments to electronic systems of payment in a society. It is gradually happening and technically feasible.
- This global trend towards electronic money is led by Scandinavian countries.
-It depends on peoples' willingness to adapt to new means of payment and banks' ability to change procedures.If banks fail to adapt then multinationals like Google and Amazon will enter the banking industry.
-A cashless society indicates elimination of cheques.Businesses refuse to accept cheques as they can bounce.Thete is additional bank charges for handling cheques.Clearing is time-taking process.They prefer instant payment by debit cards.
Advantages:
1.More convenient and safer.
2.Retailers save time of counting cash.
3.Faster and more accurate transactions.
4.Online transactions facilitate e-commerce.
5.Incentives are provided.
6.Eliminates identity theft and fraud.
7.Saves cost of manufacturing cash.
8.Eliminates robbery and counterfeit
9.It might reduce illegal drug trade and associated crimes.
10.Substantial investment in EPOS,Mobile wallet and security systems has removed economic barriers.
Disadvantages:
1.Danger of hacking.
2.Extra spending.
3.Cost of processing payment.
4.Lack of privacy.
5.Technology breakdown hampers transactions.
6.Certain sections are marginalized.
7.Lack of Consumer acceptance
-One of the greatest obstacles to cashless society is consumer resistance.Many people dislike change and are not prepared or donot wish to change purchasing habits.
- This global trend towards electronic money is led by Scandinavian countries.
-It depends on peoples' willingness to adapt to new means of payment and banks' ability to change procedures.If banks fail to adapt then multinationals like Google and Amazon will enter the banking industry.
-A cashless society indicates elimination of cheques.Businesses refuse to accept cheques as they can bounce.Thete is additional bank charges for handling cheques.Clearing is time-taking process.They prefer instant payment by debit cards.
Advantages:
1.More convenient and safer.
2.Retailers save time of counting cash.
3.Faster and more accurate transactions.
4.Online transactions facilitate e-commerce.
5.Incentives are provided.
6.Eliminates identity theft and fraud.
7.Saves cost of manufacturing cash.
8.Eliminates robbery and counterfeit
9.It might reduce illegal drug trade and associated crimes.
10.Substantial investment in EPOS,Mobile wallet and security systems has removed economic barriers.
Disadvantages:
1.Danger of hacking.
2.Extra spending.
3.Cost of processing payment.
4.Lack of privacy.
5.Technology breakdown hampers transactions.
6.Certain sections are marginalized.
7.Lack of Consumer acceptance
-One of the greatest obstacles to cashless society is consumer resistance.Many people dislike change and are not prepared or donot wish to change purchasing habits.
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