The term Cashless Society has become more familiar with us as days go by. A cashless society is a modern economic state where people use physical money less often and rely more on digital money. Many parties are creating platforms for digital money with many interesting deals such as discounts and cashbacks. Sure, the emergence of a cashless society brings many benefits to us, however, there are still threats and dangers that we all should be aware of. So what are the pros and cons of a cashless society exactly? Read on to find out.
Effectiveness and Ease to Pay
With the use of digital money, people do not have the need to bring extra cash with cash. It is also easier and faster to pay in the exact amount. The shorter time needed to pay also tackle the problem of long queue at the cashier. People can also see the amount of the money that they have more easily by looking at their phone. Digital money also makes it easier to track any previous transaction done by the user.
A More Secure Way to Conduct Transaction
Related to the previous point, the use of digital money makes it unnecessary for people to bring cash in a large amount. This way, it is less likely for someone to be robber or for their money to be stolen. Even if the phone is lost, not everyone can use the sensitive data inside it as it usually requires a PIN or password.
One of the main benefits that drive people to use digital money is the promotions. A lot of platforms are giving promotions to lure new customers in. Some of the most popular promotions are cashbacks and discounts, often offered with quite a high amount. With these promotions, users can save a lot of money and enjoy many benefits using digital money.
Technology Prowess and Awareness
Obviously, digital money relies so much on technology prowess and awareness. As such, it will be quite hard for people who are not familiar with the latest technology, for example, the elderly people. It will take time for them to learn and use new technology. Moreover, technology-reliant stuff can sometimes backfire as when there is some error, whether it is the machine, apps, or even network connection, then people would not be able to use their digital money.
Looming Cyber Threat
Going cashless may protect you from real-world criminals who try to take your money via physical methods. However, it does not guarantee that your money will be completely safe. The presence of cyber crime threatens people who use digital money regularly. There are so many scams and tricks that a cyber criminal can use to get hold of your user’s data, and with it, the access to your digital wallet. Sure, the company who releases digital money may implement high-tech security systems to prevent their system from being breached, but most digital attacks are being aimed at the user, capitalizing on the user’s lack of technological prowess and awareness. That is why users must be very careful regarding their personal info and always updating their security system to prevent their data from being stolen.
While the plethora of promotions can bring many benefits to the user, there is a drawback from the consumer’s perspective. People are being led to a more consumptive behaviour subconsciously as they think they are saving money and reaping many benefits while they are actually purchasing things that they might not need. As such, users must be able to restrain themselves and manage their expenses wisely to avoid overspending and becoming too consumptive.
As you can see from the above, there are many benefits that were brought by the emergence of a cashless society. However, there are several drawbacks that we all must be aware of as well. If we are truly going cashless in the future, we have to prepare ourselves better to reduce or eliminate these drawbacks.
At the moment, not all countries are prepared to fully transform to a cashless society. Sure, advanced countries like Singapore, Finland, etc. may possess the required infrastructure to support the advancement to a cashless society, but many developing countries don’t have the same. In such countries, cash is still being used regularly in many areas as the primary method of transaction.