PAYMENT SOLUTIONS
Pros and cons of going cashless
CASHLESS PROS Security : Digital payments are safer than actual currency . Today ’ s payment solutions eliminate the risk of carrying cash .
Budgeting : Digital transactions are so well tracked that it ’ s much easier to keep track of spending habits and put savings measures in place .
Accurate : Gone are the days when breaking into a £ 20 note means the rest has disappeared . Exact payments tend to stop funds from being frittered .
Lost cash : An astounding , estimated $ 62m disappears from the US economy every year due to small change loss – cash that goes down the back of the sofa or is accidentally thrown out . fintechs are addressing these issues by providing services to minorities , going cashless could allow retailers and restaurants to discriminate against segments of the population by upcharging or denying service .
Industry losses : Service workers often rely on cash to boost their income , especially in the hospitality industry . Other sectors of society such as undocumented migrants and homeless people who don ’ t have access to technology , would struggle if cash were to disappear completely .
Higher spending : Some studies show that digital payments result in customers spending more , with some credit card facilities encouraging overspending . Cash usage can act as a guardrail to keep people out of debt .
More sustainable : Cold hard cash uses up resources in the minting process . These include paper , copper , nickel , zinc and the manufacturing cost . Additionally , there is the real estate space required for ATM machines to provide access cash .
CASHLESS CONS Loss of anonymity : The tracking of digital transactions gives financial institutions , governments and banks far-reaching surveillance capabilities . Data on the flow and liquidity of capital and the purchase decisions people make is information that institutions can use to judge individuals .
Underserved communities : Many developing countries have large swathes of the population that are currently classed as unbanked . Although
78 April 2021