Cashless Society: The Evolution of Digital Payment

Digital Payment

There has been a tremendous evolution in the sector of digital payments. This sharp increase raises the question: where will digital payment take us in the future? The opportunities are endless, thanks to the increase in the number of consumers becoming tech-savvy. According to Statista, the number of global smartphone users are estimated to hit the 5.5 billion target against an estimated population of 8 billion.

The staggering statistics reveal crucial information about the global approach towards the future of financial transactions.

Is cash losing value?

The use of physical cash has significantly been reduced in the recent past. Currently, the use of cards is the preferred global payment method. The use of mobile wallets has also escalated. This shows the global acceptance of the cashless society and, as a matter of fact, that the digital payment revolution is at a new peak.

The big players in the evolution of digital payments

The European Central Bank recorded an increase in non-cash payments by 8.1% in 2019. Out of this figure, 48% were card transactions. The infrastructure in first-world countries is receptive to the cashless society, thus, driving the evolution of digital transactions further. However, the unsound heroes of this revolution are the startups and investors in the digital payment space.

On the list of successful investors promoting the advancement of digital payments is Ofir Bar. He is an investor in real estate and tech startups. With a net worth exceeding $150 million, Ofir Bar has been investing in startups developing digital payments such as cryptocurrencies. “I believe that it is a matter of time until cash is perceived as an uncommon way to pay,” he told us. “We are currently undergoing a massive shift from credit cards to apps like Google Pay and Apple Pay, making cash even more obsolete. I believe that the next big thing will be the acceptance of crypto, and all signs are pointing in that direction.”

The impact of Covid-19 on the future of digital payment

Undoubtedly, the Covid-19 pandemic changed the global lifestyle. Many industries and sectors were affected by the pandemic. While most sectors suffered a huge blow, the digital payment sector flourished under the circumstances of the pandemic. It was almost a requirement in every country for people to go cashless. Therefore, Covid-19 accelerated the adaptive move from cash to digital payments.

The effects of the virus are still prevailing these days. People now understand the importance of alternative (cashless) currencies in the world, opening up space for the use of cryptocurrencies in the future at a massive scale.

Expected turn in the digital payment space

There has been a lot of development in the digital payment space that can affect the future use of cryptocurrencies. Here are some highlights of what the consumer should brace up for in the coming years:

Crypto at physical stores

crypto physical store (1)

In the future, it is expected that cryptocurrencies will be used in physical stores as a form of financial transaction. In the past, cryptocurrencies appeared strange in the eyes of many consumers. However, with a few international central banks formulating regulations in an attempt to institutionalize the use of cryptocurrencies, people are no longer adamant about using them.

Increased legal crypto trading

Financial pundits also predict that regulations will put cryptocurrencies on the spot in trading. Many financial traders are expected to resolve to trade cryptocurrencies because of their popularity and volatility.

Increased investment in digital payment

It is expected that more investors will join Ofir Bar in investing in the tech startups that develop cashless transaction methods. The use of cryptocurrencies will be a necessity rather than an option. Players in the financial industry and the general population must embrace these modern transactional methods.