We’ve all seen or at least heard that the UK is taking serious steps toward a cashless society, and there’s no stopping it.
There is no denying that the pandemic has changed our lifestyles more than we can imagine over the last two years. Our simplest tasks like grocery shopping or even the more vital ones like going to work were affected. However, besides these apparent changes, it has accelerated the speed of going cashless.
In 2020, we witnessed a 35% drop in cash transactions. Due to the lockdowns, people would prefer to shop online, and that has also decreased cash use.
If we take a look at the life after lockdown and store reopening, we can also spot so many businesses that refuse cash. That proves why many of you won’t even remember the last time you paid with hard “cash”.
According to statistics, nowadays, the majority of payments are with debit cards or credit cards. (Almost only one out of five purchases are in cash.)
Citizens have even made this process easier by turning to online shopping.
Today, YounGo has decided to take the cashless world concept under the microscope.
Why We Choose Online Shopping over In-Store Shopping
As we mentioned so far, purchasing online is the “main” fuel for the cashless rocket!
People usually tend to shop online due to many reasons.
- It’s easier to find rare items online.
- You can do a detailed search about the product you want to buy and compare it to others.
- You can save time and energy and avoid waiting in long and crowded lines.
- In many cases, you can find the item you are looking for at a better price online.
- For any purchase, you have a broad range of selections.
- I’m sure we all have a couple of items in our closets or drawer that we don’t even like or want, but we bought in under pressure. However, you can avoid this sales pressure when shopping online.
The definition of a Cashless society
As the name suggests, we will no longer struggle with cash and coins for our financial activities. Instead, electronic transactions will take their place. In addition to the UK, many other countries are now moving in this direction. Needless to say, these changes don’t happen overnight. To help you have a better understanding of this matter, we’ve listed its benefits and drawbacks.
What are the benefits of going cashless?
The first thing that comes to mind when we think about a cashless society is comfort and convenience. No matter what you need money for, purchasing a KitKat or a house, all you need is a card and your phone. In addition to the comfort, it provides, going cashless also brings you other advantages.
- If you have no cash in your pocket, the money stealing will significantly reduce: Carrying a lot of money makes you the best target for robbers. We are not suggesting that it won’t happen in a cashless world! But if it happens, you can instantly block your card and get your money back. Blocking is even possible remotely using your cellphone or logging into your account with other devices.
- It lowers the amount of money laundering: We all are familiar with a suitcase full of money, and yes! in criminal movies! Almost all financial crimes happen with cash in order t avoid leaving any trace. However, in a cashless world, this won’t be possible. Any transactions are detailed, and it’s difficult and almost impossible to hide any records.
- Exchanging currency will be a lot easier. If your country of destination is also going cashless, you don’t have to go through the trouble of exchanging money. Your bank account and mobile device would take care of everything. All you have to do is enjoy your sunny vacation!
- You can enjoy headache-free cash management: This item is more important for businesses and companies as many of them may need special circumstances to store money or deposit cash. It is also costly to hire people to take care of these tasks.
- Easily keep track of your money: With the rapid pace of technology, everything is possible now! Many banking apps let you set spending limit alarms to avoid overspending. Plus, you will have a detailed record of your expenses, helping you better manage your money.
Although, there are some drawbacks to going cashless, making it hard for some people to accept it.
Disadvantages of a cashless society
- People are worried about their privacy: Your personal information and money are online, and we don’t deny the danger of hackers. It makes sense to get distressed about it. However, there are many ways you can make sure about your account’s security. Read more about it here.
- Technological Problems are inevitable: Some common technological problems like glitches can make you unable to purchase anything for hours or even days!
- Overspending: Sometimes, we just swipe, swipe, swipe and forget how much we’ve spent! However, when we use hard cash, it’s easier to take control as we see the money we take out of our pockets.
What Changes will happen in this world?
When moving toward a cashless society many things will be different from what they are right now. We will witness significant development in electronic payment apps, Mobile payment services and virtual currencies.
To Wrap Up
Many people and organizations are now encouraging digital spending and going cashless. Taking all the advantages we mentioned into account, it can be the best way to move forward to a better future. It also helps to form better financial habits. It will also benefit people and businesses.
We can’t surely discuss the troubles will be facing by that time. But, we believe having a proper strategy can make everyone benefit from these changes.