There is a gradual and steady expansion towards Cashless Transactions as each day passes and it is evident that the world is about to adapt this idea. Cards like Credit Card and Debit Cards have substituted for physical cash considerably. This change has occurred as of late due to the increase in mobile payment apps and such platforms. Yet, physical cash still retains its position as the prime aspect in most of the nations.
Steady shift from Cash to Cashless transactions:
It has been a long time since paper cash emerged and it has been on the market until the present. Aspects related to trade, economic trends and stratagems have changed, but paper cash has remained unchanged. It is due to technological ventures and advancements that there is a change in the way of transactions. This has been welcomed by the people mainly due to the amenity it provides
Nations like Sweden, Denmark, and Norway have adopted this paperless money concept but it's surprising that the leading nation of America has been hesitant to shift to this concept.
Based on an analysis it is found that the US people do not have faith in the Government contrary to that of both Sweden and Denmark which are regarded as the world's least corrupt nations primarily because of the organization of their governments. This is a little bit divergent in the case of the USA where they don't make use of the concepts implemented by the aforementioned European countries due to lack of faith in them and the worry about the situation of their money after it is digitized.
In the last half of the century, USA citizens have lost the trust in their government to a considerable extent, with several factors behind this reaction. An analysis shows that most of the people are concerned regarding privacy when carrying out Online Banking where they are wary of the fact that the data provided by them could be maliciously handled.
However, the concept of cash is very gradually getting diminished.The concept of cashless prudence is not that far way as per a Harvard economist. Big bills are considered as a bane as they could promote felonious undertakings. Removing such hindrances will allow people to adopt and embrace cashless transactions.
With a huge rise in mobile payments, it is well signified that the growth of cashless transactions is progressing in the US. An analysis reveals that a figure of more than 72% of the Americans has Credit or Debit cards. Such a cashless nation wont be available immediately, but it shows its growing presence.
Card holders in the USA are on the rise, even though most of the Americans prefer cash transactions. The US is currently positioned as 7th in the list of countries that has more card users. This is also a indicator of the shift towards cashless transaction.
Apps like Venmo contribute towards making the US have a cashless ideal future and it is primarily focused on youngsters who show appeal towards such a future.
Many of the people belonging to the younger generation are captivated by the idea of using a card as opposed to cash. This is related to the future of the country which will depend on the particualr age sector.
US citizens have manipulated the usage of cards to satisfy their fundamental requirments. Also there is a rise of 7 % from 2011 regarding people who prefer cashless transactions. This is contributed by the massive usage of Smart Phones and presence of apps like Venmo and Apple Pay.
That is to say, the USA will not transfer into a cashless economy in the next coming 5 years. Further the US. is 33 times bigger than Sweden. However this nation wide happening is slowly gaining steam in various parts of the country. A majority of the Americans predict that the country will go cashless in the coming 20 years.
Hurdles regarding a cashless economy of the USA:
The United States still has a lot to do before becoming a cashless economy where it is possible only if all the nations are making efforts to achieve such a state. Otherwise this could turn into a disaster.
In order to reach such a stage, the given country should incorporate the appropriate groundwork to achieve such a goal. Digital banking needs people to have access to smartphones, and debit & credit cards along with an internet connection which is impossible considering all the peoples of the nation and even for an advanced country like US, people without access to such provisions are still there. Also, compounding the issue is that in the United States there are still millions of people who dont possess a bank account. Further, adding to the issues is that there is a opinion that cashless economy removes the poor and illiterate people from the picture.Hence such a structure must assimilate that grouping of people too.
Factors related to Security:
Intruders and hackers have invaded the payment modules and have abstracted with millions of dollars. The safety and fortifying security guidelines must be reinforced and implemented to tackle such hackers. The Tax related officers and the Police can have access regarding personal transaction information and revenue.
Coming to the US, it is the banks belonging to the private sector who are very much captivated by the idea of a cashless community rather than the ones operated by the Government. The former lacks an adequate safety protocols in order to tackle an emergency related to which natural cartaclysms will damage the structure and results in total chaos in the nation.
Benefits of shifting to Cashless economy
Online transactions provide less room for corruption / illegal activities and offers a clear picture. The ruling body can organize every transactions properly and clearly and as well provide a firm control over the monetary aspects. Further, time is conserved as online transactions take only a considerably small amount of time like minutes, when evaluated with other methods which take up a long time to process it.
Further cash transfer among antisocial groups in various nations can be controlled significantly. To make cash, papers are used.This results from chopping a vast number of trees to make the paper. By implementing a cashless structure the environment is protected
To conclude, the USA is surely shifting towards a cashless community which however wont occur immediately as several factors have to be taken into consideration and should materialize as well. There are the ups and downs of such a system. The world is slowly welcoming the cashless system of economy, where it depends on time whether it will be implemented properly or not.
Michael Archer the CEO and Co-Founder of Whatsappupdate, which is a well accepted and in demand Mobile App Development company is a daring and adventurous person who likes to pursue and rendezvous with the latest on goings in the technological world. His exhaustive, innovative, captivating and motivating skills and expertise has contributed to the generation of apps like Zoechat- Whatsapp Clone Script. In his free time, he is involved in disseminating and inculcating his experience and knowledge he has gained throughout the years with others and reading novels.