As the World Gravitates Towards a Cashless Society, These Are the Pros and Cons of Going Digital

A cashless society. Once only possible in the realm of science-fiction but now an  . According to UK Finance, 51% of all payments in 2019 were made with card. This number has only increased since on account of the coronavirus pandemic. But what are the pros and cons of a cashless society?

The Advantages of Going Cashless

For starters, lower crime rates from brick-and-mortar stores should be expected as there won’t be anything to steal. A study conducted in Missouri found that crime dropped by 9.8% when the state replaced cash welfare benefits with EBT (Electronic Benefit Transfer) cards.

There will be less money laundering and tax evasion because there will be a paper trail. An estimated £8bn in tax revenue is lost due to cash in hand payments. Something that would be more easily prevented in a cashless society – though it’s a controversial notion, admittedly, that’s sure to attract backlash from those who resent government intrusion into every last facet of their lives.

Finally, going cashless will make international travel easier. There will be no need to worry about currency exchange rates when you have the assistance of technology. Visa is very much on board with cashless travel. Back in 2018, it undertook a Cashless Challenge: the idea that one person would go on the journey of a lifetime using nothing but their Visa card.   

The Disadvantages of Going Cashless

A cashless society will facilitate bad spending habits. Many find it easier to control their spending when buying things in person. They worry that they’ll give into the temptation when items are just one click away.

Some banks and businesses charge an additional fee for digital transactions. Knowing this, not everyone will support a cashless society.

Payment information is available to every business you transact with. Vulnerable data could be taken, and money could be stolen. While this is mainly an issue for the eldery and technophobes, it’s still a concern.

Conclusion

The UK, and indeed most of the developed world, are already cashless to all intents and purposes. You can still use cash in most places, but card is now preferred in-store – even among small businesses that were once cash-friendly. 

An all-digital society, in which payments are conducted using PoS, ewallets, credit card and crypto networks, is now here. While this brings untold convenience for ecommerce, and for in-store retail, it’s vital that cash isn’t allowed to die altogether – at least not yet. Cash still plays a vital function for P2P trades, at marketplaces, for small businesses, and forms a lifeline for those who lack full banking access.

While the demise of cash is inevitable, for the sake of the older generation, many of whom are tech-averse, and for the purposes of swapping goods and services in person, let’s hope that cash has a few more years in it yet. Cash has its limitations but for simplicity, privacy, and fungibility, it’s still hard to beat.