Definition of cashless society
Cashless society is an economic concept where financial transactions are executed in an electronic format rather using banknote.
In a cashless society, each party will have an electronic card or device which will be used to execute the transaction.
The cashless transaction may be executed in the form of Credit card, Debit card, Mobile wallet, Point of sales (POS), Internet banking, Mobile banking etc. Some real world examples are PayPal, Google Wallet, MoneyBookers, Payoneer, Amazon Go and so on.
Advantages of Cashless Society:
- Handy transaction method, reduces the risk of carrying hard cash.
- It helps to reduce instances of tax evasion.
- It curbs generation of black money and reduce corruption.
- It keeps the record of all transactions which will help to reduce illegal monetary transaction.
- Digitization of transaction as well as ease of lifestyle.
Disadvantages of Cashless Society:
- Risk of identity theft.
- Risk of information loss.
- Risk of inactivity of electronic device during the transaction.
- Lack of secure internet facility.
- Less control in spending.
- Extra charge may be imposed by merchant.
World’s top 10 most cashless countries:
According ForexBusiness.org world’s top 10 most cashless countries are:
Probably, Sweden is winning the race towards becoming the world’s first completely cashless society. More than 59% of consumer transactions in Sweden are completed through non-cash method, which is highest in the world now. Mobile payment app Swish is favourite to Swedes.