The world is undergoing a rapid transformation towards a cashless society, where digital payments have become the new norm. This shift is driven by technological advancements and changing consumer behaviors. In this blog, we will explore the reasons behind the ongoing shift towards cashless societies and the latest status of this global phenomenon.
Why the shift towards cashless societies?
One of the main drivers behind the shift towards cashless societies is the increasing use of smartphones and other mobile devices. Today, almost everyone has access to a smartphone, and mobile payments have become an integral part of our daily lives. With just a few taps on a screen, we can now make payments for goods and services from anywhere in the world.
Another factor driving the shift towards cashless societies is the convenience and security of digital payments. Unlike cash, digital payments are fast, reliable, and secure. They eliminate the need for physical currency, which can be easily lost, stolen, or damaged. Digital payments also enable consumers to keep track of their spending more easily and to make purchases without having to carry around cash.
The ongoing COVID-19 pandemic has also accelerated the shift towards cashless societies. With social distancing measures in place, many consumers have turned to digital payments as a safer and more convenient way to make purchases.
Latest status of the shift towards cashless societies
The shift towards cashless societies is already well underway, with many countries making significant progress towards becoming cashless. In fact, according to a recent report by Statista, the global mobile payment transaction value is projected to reach $4.4 trillion in 2021, up from $930 billion in 2016.
In China, digital payments are already the norm, with over 80% of the population using mobile payments on a regular basis. In Sweden, cash transactions now account for less than 10% of all payments, and the country is on track to becoming completely cashless by 2023. In the United States, mobile payments are becoming increasingly popular, with over 90 million Americans using mobile payment apps like Apple Pay and Google Wallet.
Genuine facts about the shift towards cashless societies
Despite the many benefits of digital payments, there are also some challenges that need to be addressed. One of the biggest concerns is the issue of financial exclusion. Not everyone has access to smartphones or digital payment platforms, and some people may not feel comfortable using them. This could lead to a situation where certain groups of people are excluded from the economy.
Another concern is the risk of cybercrime and data breaches. Digital payments rely on complex networks of computers and servers, which are vulnerable to hacking and other forms of cybercrime. This could lead to the loss of personal and financial data, which could be used for fraudulent purposes.
In conclusion, the ongoing shift towards cashless societies is driven by a combination of technological advancements, changing consumer behaviors, and the COVID-19 pandemic. While there are many benefits to digital payments, there are also some challenges that need to be addressed. As we move towards a cashless future, it is important to ensure that everyone has access to digital payment platforms and that these platforms are secure and reliable.