With the ongoing digital transformation gaining momentum and reshaping the global financial sector, more countries are edging closer to the vision of a cashless society.
1. The global landscape of cashless payments
The worldwide market for cashless payments is currently diverse, with various forms and providers. In addition to traditional bank cards, major players like Google and Apple have entered the payment application arena, leveraging their mature and widely recognized technological platforms. Mobile apps such as PayPal, Venmo, and Apple Pay are increasingly showcasing competitive advantages with a range of conveniences and incentives for users.
Digital currency holds the promise of becoming an appealing payment channel in the future, thanks to its low transaction costs. Particularly, Facebook's Libra currency, with its near-zero usage fees and lightning-fast processing speeds hundreds of times faster than previous cryptocurrencies, is eagerly anticipated by the market.
Sweden stands at the forefront of the global cashless trend. Cash transactions now only constitute about 15% of total retail transactions in the country.
In Belgium, for transactions involving real estate or high-value goods over 3000 Euros, the use of an electronic system without cash is mandated.
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2. Benefits of a cashless society
Crime prevention
Carrying cash exposes users to significant safety risks. However, with digital currency and e-payments, users no longer need to worry about theft or robbery while on the go, thereby contributing to the reduction of crime rates and fostering a safer society.
Corruption combating
Electronic transactions store all transaction information as well as the identities of the parties involved, making it impossible for individuals to conceal income. This helps governments prevent tax revenue losses and mitigate money laundering risks.
In countries grappling with corruption, cashless transactions can serve as a potent tool in promoting financial transparency.
Reduction of cash issuance and circulation costs
The cessation of cash usage leads to significant reductions in printing, transportation, and storage costs, resulting in overall savings for society.
Increased capital mobilization for economic development
Cashless payments curb cash hoarding by individuals, enabling banks to mobilize idle funds within society for profitable business activities, thus boosting capital for the economy.
Benefits for consumers when shopping
Cashless transactions streamline the shopping experience for consumers, saving them time and effort. Consumers can also avail themselves of numerous incentives and discounts from fintech companies, banks, and suppliers.
When traveling to countries that accept electronic payments, users are spared the need to exchange local currency for payment, offering greater flexibility and convenience.
3. Limitations of a cashless society
Privacy concerns
Electronic payments require leaving personal information on storage systems, raising concerns among users about potential information leakage or misuse.
Account security risks
Cases of hackers infiltrating systems and stealing money from accounts are perhaps the most significant concerns for users.
Conclusion
A cashless society represents an inevitable global trend owing to its comprehensive benefits for both users and the economy. As service providers better address privacy and security concerns, user apprehensions will diminish, unleashing significant impetus for development.
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In recent years, Dibee has been at the forefront of pioneering digital solutions to help customers minimize/eliminate cash payments in fuel transactions, which account for 30-45% of total transportation costs for businesses. Dibee's clientele includes logistics and transportation companies, as well as goods manufacturers with diverse fleet sizes such as DHL, Vietnam Post, CJ - SG Safety Vina, Green Leaf Vietnam, Bitis’, and more.
For further details on how our solution aids businesses in saving fuel costs while modernizing management processes, please reach out to us via:
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Email: sales@dibee.co
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