With the rise of the global e-commerce marketplace has come a variety of additional innovations. One of these is a payment system that is no longer grounded in cash. Today, people spend money all day long without once touching a coin or a piece of cash currency paper.
While it is not likely that cash itself will be phased out of the economy anytime soon, and there are pros and cons to doing so, these three instant benefits of cashless payment certainly make a strong argument for going cashless.
Benefit #1: Personal and financial security.
Perhaps the most compelling and significant instant benefit of using a cashless payment system is simply security and safety. When you don’t have to carry or handle cash for personal or business use, you don’t have to worry about loss or theft. This is especially significant when you travel since, unlike with travelers checks, you can’t recoup lost or stolen cash – when it is gone, it is gone.
But even more important than safeguarding your valuables is safeguarding you and your loved ones. When you don’t carry cash, you are less likely to be identified as a target and victimized by thieves.
Benefit #2: The convenience factor is undeniable.
When you have other options for how to pay for the goods and services you need, you can optimize your time by avoiding trips to the bank or ATM machines. As well, you can lighten your load by leaving your wallet at home.
As well, the more you are able to consolidate errands and belongings, the less risk you bear of losing anything valuable and the less time you have to spend counting cash and making correct change.
Benefit #3: Increases in spending and reductions in costs.
There are many “hidden” costs associated with using cash for payments. For example, special types of cash registers and cash acceptance terminals must be used and maintained and the accumulated cash must be regularly collected. Also, the cost of actually producing the coinage and paper currency will decrease, freeing up funds for other useful purposes.
As well, businesses that offer a cashless system can expect to see purchases increase, since the need to carry cash will not inhibit spontaneous purchases. Finally, there will be less of a health risk from handling currency and coinage during high illness periods such as cold and flu season, when it becomes very easy to transmit germs through cash-based transactions.
It is challenging to narrow down the many benefits of going cashless to just three, but these three are arguably the most compelling reasons for adding a cashless component to any business enterprise and opting in for cashless personal transactions.