The Pros and Cons of a Cash-Free Society

Headlines have long touted a cash-free society is on the horizon, but digital payments have yet to replace cash entirely. Cashless cities are still far off, giving you the choice between using a mixture of cards and mobile wallets or plain, old-fashioned cash.

Below, let’s see what you can do without cash and explore the pros and cons of living without it.

You Can Perform Most Financial Tasks as Normal

If you do online banking and have a mobile wallet, you might not be surprised that you won’t miss cash. Innovations in FinTech have made it possible to do pretty much anything you used to do with cash online.

• Pay bills and transfer funds between bank accounts.
• Set automatic savings rules to transfer funds on a regular basis.
• Tap an NFC-enabled debit or credit card to pay for items at a store register.
• Hover your mobile phone or present a QR code to pay for items at a POS.
• Borrow, manage, and repay online loans with your phone, laptop, or tablet.
• Automate your investment portfolio through a digital platform.
• Sync all your financial accounts with budget and money management apps.

What Are the Pros of Living Cash-Free?

Here are three benefits to embracing digital payment options.

1. Convenience

One of the primary advantages of a cashless society is convenience. There is no need to visit a bank to request a personal loan or pay a bill with digital payments. You can transfer money or apply when and where it works for you. In many cases, you can do all these tasks with just your smartphone and a secure network.

2. Speed

Behind-the-scenes processes are faster than ever thanks to advancements in FinTech, enabling rapid transactions. If you order takeout for dinner, digital payments debit your account almost instantly. If you apply for a loan online, some online direct lenders offer same business day loans, which are further accelerated by direct deposit options.

3. Accessibility

As long as you have the Internet, you can tap into a wealth of financial knowledge and learn a lot about what you should and shouldn’t do with your money. The Internet has democratized financial literacy, taking it out of elitist business schools and putting it onto the everyman’s screen.

Of course, you can’t believe everything you read, on the Internet so start with these trustworthy sites:

• Investopedia
• The Balance
• Consumer Financial Protection Bureau
• Federal Reserve Education.

What Are the Cons of Living Cash-Free?

Here are three reasons why cash-free living isn’t all that it’s cracked up to be:

1. Discrimination

While you might think everyone has a credit card, smartphone, and access to the Internet, a large portion of the population does not. Plenty of people who are unbanked and underbanked face difficulties setting up or managing digital payments. Seniors, rural communities, and low-income people may also not have reliable access to the Internet or personal devices. These individuals need cash to survive.

2. Outages

Many digital payment platforms rely on the Internet to process transactions. What happens if an internal error, hackers, or a natural disaster interrupts this service? You may lose connectivity and access to the cash in your bank account for longer than you feel comfortable.

3. Fraud

Living in a cashless society exposes individuals to new risks. Data breaches and poor online security practices can leave people vulnerable to fraud and identity theft. As more financial transactions occur online, the importance of robust cybersecurity measures becomes paramount to protect personal and financial information.

Bottom Line:

While there are many convenient advantages to having a mobile wallet, removing all cash might pose a problem for a lot of people. For now, you’re experiencing the best of both worlds.

 

None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.