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Cashless payment

Experts in finance are saying that sooner or later, we will be moving to a totally cashless society? The two burning questions that everyone is experiencing are, will it be sooner rather than later, and is it right? Many people believe that cashless means there is no paper trail. But this is not totally correct, because there will be an online trail. Every single card payment is tracked and recorded by a vast network most customers aren’t aware of. But, receipts are printed out by machines so there is some way for the customer and the powers that be to show evidence of purchase. The moral question is a hard one, it’s still unclear which side of the line it will stand on. So what could speed us toward a cashless society?

Smartphone payments

We’re talking about going cashless, but what about cardless? There could be a new dawn about to break over credit and debit cards. It spells the end of this kind of system because people can use their smartphones as their credit cards instead. In fact, it’s quicker and some say more secure. Here is the difference between EMV vs NFC payments. EMV stands for Europay, MasterCard, and Visa. These are cards with chips in them, as you already know. NFC is near field communication. So essentially, it’s when you swipe your smartphone over a scanner to pay for a coffee and doughnut at your local vendor. During the times of covid-19, the latter has been the preferred method by both customer and enterprise. Seems like this could be something we get used to pretty quickly, not just out of convenience but out of necessity.

Money printing is expensive

Printing money doesn’t necessarily pay for itself. According to the Federal Reserve, it costs 6.2 cents to print $1 and $2 notes. It costs 10.8 cents to print $5 and $10 notes, and 11.2 to print $20 notes. Seeing that they print a lot of money to circulate around the economy, the cost of printing could range in the millions each year. So large banks might see a chance to save on costs, without needing to properly store cash in their reserve vaults and not needing to store it in their customer banks either. This makes sense and it could mean, there is a much lesser chance of being robbed by armed individuals.

Less hassle

The simple fact of the matter is, it’s just less hassle. You don’t need to do any counting, you don’t need to handle any change, nor do you need to carry a fat wallet or purse around with you. If you can just use your phone to pay for hotdogs at a sports game, or for a car wash, or for a t-shirt at the mall, why bring cash? Why risk losing or damaging fragile notes? It seems like pragmatically, cashless is going to be the norm.

What other reasons can you see for society going cashless and do you favor it, or do you want to stick with notes indefinitely? 

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