What is Cashless Society?
A cashless society is one in which digital payment methods are used extensively for financial transactions, and physical currency is not commonly accepted. In India, there has been a trend toward a cashless society in recent years, with the adoption of digital payment platforms such as Gpay, PhonePe, and Paytm.
One of the main drivers of the move toward a cashless society in India has been the government’s push to promote digital payments as a way to reduce corruption, increase financial inclusion, and modernize the economy. In addition, the widespread availability of smartphones and internet access has made it easier for people to use digital payment platforms.
There are a number of advantages to a cashless society. For example, digital payments can be faster and more convenient than using physical currency, and they can also reduce the risk of theft and money laundering. However, there are also concerns about the potential risks of a cashless society, such as the reliance on technology and the potential for cyber attacks. Overall, the move towards a cashless society in India is ongoing, and it will likely continue to evolve in the coming years.
The shift towards a cashless society is gaining momentum as more people and businesses opt for digital payments, which offer convenience, security, and other benefits such as efficiency and cost-effectiveness for businesses and protection against fraud for consumers. As digital payment solutions continue to evolve and improve, we can expect to see an even greater shift towards cashless transactions.
The trend towards a cashless economy is growing due to several factors, including the increasing prevalence of digital payment options, growing consumer preference for cashless transactions, and government initiatives promoting digital payments.
Digital payment options, such as mobile payment apps, UPI apps, Digital Currency, and online banking, have made it easier for people to make cashless transactions. Many people prefer cashless payments because they are more convenient and offer excellent protection against fraud. Governments worldwide are also encouraging digital payments to reduce cash-handling costs and complexity.
For businesses, going cashless can offer economic benefits, including reduced costs and increased efficiency. As digital payment options evolve and become more widely available, we may see an even more significant shift towards cashless transactions.
The Advantages of a Cashless Economy/Society
There are several advantages to cashless payment methods in today’s digital age. Here are five reasons why a cashless society can be a good thing:
1. Safe and Secure:
When you keep your money in a bank account, assets, or investments, it is almost impossible for it to be lost, stolen, or damaged, unlike physical cash. With India’s robust banking system and security measures, you can have peace of mind that your money is secure.
2. Money grows:
When your money is in a savings account or investments like mutual funds and fixed deposits, you earn interest, which helps your money grow over time. On the other hand, the value of physical cash can diminish over time due to inflation.
3. Better money management:
Using digital payment methods, you can easily track your income, spending, savings, and return on investments through your bank statement. This information can help you plan for the short, medium, and long term.
With advanced technology and payment systems, going cashless is just as convenient as using physical cash. You can use your money in various ways, often instantly, to purchase tickets, pay bills, or make other financial transactions.
5. Lower stress levels:
With cashless payment options, you don’t have to worry about finding change or standing in line at an ATM in inclement weather. Cashless can save you time, effort, and transportation costs, allowing you to relax and breathe easily.
Types of Cashless Payments Available in India
In India, digital payments can expect to reach $1 trillion by FY23 due to the government’s push for financial empowerment and a technology-driven economy. The country is becoming a fintech-driven society that is “faceless, paperless, and cashless.” Various payment options are available to support this transition, including credit/debit cards, digital/mobile wallets, digital rupee, buy now, pay later options, mobile contactless payments, UPI, and POS terminals. These methods are helping shape India’s payment ecosystem by moving away from paper-based payment modes.
Online transfer is a convenient and fast way to send and receive money electronically. Two standard methods for online transfer in India are National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS). These services are offered through internet banking and allow you to transfer money between bank accounts within the same bank or to accounts in other banks.
Credit and Debit Cards:
Credit and debit cards are widely accepted forms of payment in India and offer a convenient way to make cashless transactions. Credit cards allow you to borrow money from the bank, while debit cards are linked to your bank account and allow you to spend money you already have. Debit/Credit cards can use at Electronic Point of Sale (epos) terminals or online to make purchases or payments.
Mobile wallets allow for the electronic storage of money and the use of a smartphone to make payments or transfers. Some popular mobile wallets in India include GPay, PhonePe, BHIM app, Paytm, and Amazon Pay.
E-wallets are similar to mobile wallets in that they allow for the electronic storage of money and the use of a device, such as a smartphone, to make payments or transfers. Some popular e-wallets in India include GPay, PhonePe, BHIM app, Paytm, and Amazon Pay.
A unified Payments Interface (UPI) is a mobile payment system that allows you to make and receive payments using a virtual payment address. UPI is convenient and secure and can easily access through various apps such as GPay, PhonePe, Paytm, Union Bank UPI App, SBI UPI, Canara Bank UPI app, and Axis Bank UPI app. Merchants can also accept UPI payments by enrolling with a bank and setting up a current account.
How Easebuzz Can Help Your Consumers Go Cashless
Easebuzz is a payment gateway and digital collections platform that enables businesses to accept cashless payments from their customers. With Easebuzz, Small and medium companies can accept payments through various digital payment methods, including credit and debit cards, online bank transfers, and mobile wallet apps like Gpay and PhonePe.
Businesses can opt for Easebuzz products like:
- Payment Link: Allows businesses to send a secure link for online payment to their customers.
- InstaCollect: Allows businesses to collect payments from customers using their mobile phones easily.
- EasyCollect: Allows businesses to accept payments from customers using various payment methods through a payment page or widget.
- Feesbuzz: Allows school and colleges to easily collect fees or charges from customers through a payment page or widget, using various payment methods.
The Easebuzz platform also offers a range of features and tools to help businesses streamline their payment processes, including invoicing, recurring payments, and payment gateway integrations. Using Easebuzz, companies can make it easier for their customers to go cashless and make digital payments, thereby helping to drive the trend toward a cashless society.
The shift towards a cashless society has numerous benefits for consumers and businesses. It can reduce the risk of theft and loss, streamline financial transactions, and make tracking and managing spending easier. Easebuzz is a digital payment platform that can help consumers go cashless by providing them with various payment options, such as debit and credit cards, mobile wallets, and online banking.
Using Easebuzz, consumers can easily and securely purchase and pay for services without needing cash. Additionally, going cashless can help to reduce the spread of germs and diseases, as cash is a known vector for transmitting infections. The shift towards a cashless society can lead to greater convenience, security, and hygiene for all involved.
1. Is Going Cashless safe?
Yes, nowadays, technology like AI, Machine learning helping cashless has many benefits, including convenience and efficiency. While there are risks, such as fraud and technical failures, taking precautions can help protect your information and mitigate these risks. With cashless transactions becoming prevalent, it’s essential to be aware of the potential risks and take steps to safeguard your information.
2. How Can I go Cashless?
You can use a credit or debit card, online payment accounts, or a digital wallet app to go cashless. Contactless payment methods like PhonePe, Amazon Pay, Paytm, and Google Pay allow easy payments by tapping your phone or smartwatch.
3. Why is going cashless the future?
Going cashless can be more convenient, efficient, and secure than using cash. It can also help reduce the spread of germs and the risk of loss or theft. As a result, many people and businesses are increasingly adopting cashless payment methods.