In 2016, the number of UK-based consumers who did not use any notes or coins at all was only 2.9 million. That number reached 3.4 million in 2017 and then 5.4 million in 2018. By 2020, the number of people going cashless crossed 13.7 million.
While the COVID-19 pandemic played a huge role in people preferring digital payment methods over traditional ones, it’s also a sign that consumers are more comfortable paying and receiving money digitally.
The world is moving towards a cashless society, and it’s only a matter of time before it happens. Sweden is already ahead in this cashless revolution, with most of its monetary transactions taking place digitally over traditional methods. A cashless society would be great for many reasons—it would make it easier to track spending, reduce crime rates, and make financial transactions more secure.
In addition to these benefits, digital currency offers an incredible array of potential applications that could solve problems we didn’t even know existed before now! For example, imagine if you could use your smartphone to pay for things at stores instead of having to use cash or credit cards. Or what if you could send money from one phone directly to another phone without having any kind of bank account attached at all?
Having established all that, it’s evident that going cashless is one of the ways we’re moving toward the future. The question is, how can people achieve this goal? How can we move towards a cashless society? Let’s find out.
Mobile Wallets
Mobile wallets, which allow you to pay for goods and services with your phone, are one of the most popular. These digital wallets work by storing money electronically in a secure place on your phone. When you want to make a purchase, all you need to do is tap your phone against a scanner at the checkout counter.
The global mobile wallet market size had a value of $1391.51 million in 2020, and it’s projected to reach $9657.04 million by 2028. At present, you can use mobile wallets to make both online payments and in-person payments for all kinds of products and services. You can also use a digital wallet app for insurance cards. Such an app lets you centralize all your insurance accounts and policies. Besides, using these apps also lets you access different kinds of rewards and transaction bonuses.
Mobile Finance and Banking
Like mobile wallets, mobile banking apps help in transaction processes. Earlier, you’d transfer money from one bank account to another. Now, you can transfer money from one mobile banking account to another. In a way, you’re always carrying your checkbook with you and can use it anywhere and anytime you need it. Plus, these mobile banking services function as digital wallets too. So, you can also pay for various goods and services with these apps.
When Zimbabwe was dealing with a falling forex reserve, mobile finance helped the country facilitate remittances. In doing so, this service helped the country receive more foreign exchange and saved its economy from collapse. It’s astonishing how going cashless can help a nation rebuild and develop its economy on such a large scale.
Cryptocurrency
Cryptocurrency is a digital currency that is not issued by a central bank or government. It’s also an alternative to traditional money. Cryptocurrency derives its value from the fact that it’s decentralized and unregulated. This means that there are no intermediaries between you and the person or company you are trading with. As a result, users can send money to anyone else in the world without involving banks, credit card companies, or other third parties.
With the growing popularity of cryptocurrencies like Bitcoin and Ethereum, it’s no longer necessary to carry cash to make purchases. Instead, you can use your phone or computer to pay for things directly from your cryptocurrency account.
As of 2022, there are over 320 million crypto users worldwide. This number will grow bigger in the coming years, as long as the market can hold its position and keep people’s trust in it.
Credit and Debit Cards
These cards have been around since the late 1950s. However, in recent times, they have become far more advanced. You can now use them anywhere in the world as long as your carrier or credit card company allows you to.
Credit and debit cards are a great option for going cashless. They can be used anywhere that accepts credit or debit cards, and they offer the convenience of a card without any extra fees or hassles. Credit and debit cards also allow you to track your spending in a way that cash doesn’t.
The downside is that credit card companies charge fees when you use them to make purchases. So, it’s not the cheapest option out there. However, it’s still convenient and one of the most popular ways that people opt for when they decide to go cashless.
Going cashless is a great way to simplify your life and cut down on the amount of time you spend worrying about money. As you can tell by reading this article, there are plenty of options to do so. You just have to work out which one works for you best and is the most convenient method for you to go cashless.
