Cashless Economy: Here Are Things You Need To Know

What do you really understand by the concept "Cashless Economy"?

There are modern and old school forms of cashless economy or society.

Modern cashless society uses digital currencies while old school one is known as trade by barter(where different physical goods are being exchanged between two parties)

However, this article is meant to explain the type of cashless economy we operate nowadays which is electronic in nature.

Meaning

A cashless society, therefore, can be defined as one in which all financial transactions are handled through digital currency (debit and credit cards) in preference to cash (physical banknotes and coins). 


Brief History

In recent years, almost all the countries of the world have moved toward a cashless society, heavily relying on card and smartphone payments to complete economic transactions. 

However, cashless societies have been a part of our history from the very beginning of human existence. 
Barter and other methods of exchange were used to conduct a wide variety of trade transactions during this time period.

The movement towards a cashless economy or society(modern or electronic) started in the 1990’s, transactions that usually would be done by cash, began to be completed with other types of payments.

Two decades later, cash was no longer the preferred method of payment. 

In 2016, the United States User Consumer Survey Study reported that three out of four of the participants favored a debit or credit card payment instead of cash. 

Some nations have contributed to this trend, by regulating what type of transactions can be conducted with cash and setting limits on the amount of cash that can be used in a single transaction.

Like almost everything in the world, non use of physical cash for transactions has its merits and demerits.




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