Living in a cashless society

27 Apr 2021

Even thinking about a cashless society seems to be like it’s something taken from a dystopian film, unreal to us and unlikely to happen. However, this was gradually becoming a reality at a slow pace, until the world was hit by the coronavirus pandemic. What changed? Humans became cautious – we were constantly told to wash our hands, to avoid contact with other people and improve our hygiene. In relation to finance, we were made aware again that money is dirty, literally. You never know where bills and coins have been and if they’re carrying any germs. Cash can carry benign bacteria to dangerous superbugs, and if you touched the money then covered your mouth when yawning or rubbed your eyes, you’d be putting yourself at risk of falling ill – allowing that bacteria to be transferred into your body. *

Therefore, in 2020, health authorities were encouraging the use of cashless payments. Cashless payments are those purchases which are paid for without the transfer of physical money, but digitally via credit cards. deVere Vault is a prime example of such cards which substitute cash, whilst offering users several features for money management. Looking back at 2020, 80% of consumers preferred using cards, whilst only 26% of consumer transactions in the U.S. were paid in cash. The change didn’t only prove to be beneficial to the consumer but also to businesses, as it was highlighted that when you’ll be paying by card, you’d have a bigger tendency to spend more. In fact, the average cash transaction is $22 whereas the average non-cash transaction is $112. Additionally, there were less queues at the ATM waiting to withdraw money – there’s no need when you’ve got a card with access to your bank account in your pocket. 

How is a cashless society more helpful? Firstly, the lack of money being carried around will minimise the rate of crime. If you’ve got no money in your pocket, no one can take it out and steal it from you. However, if you do have money and it’s stolen it’s much tougher to identify the thief and get your money back. On the other hand, a credit card is also safer as you can easily cancel or freeze that card as soon as you notice that it’s missing. This feature ensures that no unauthorised purchases can be made using the missing card as it’s frozen – not functioning, no matter how small the purchase amount is. In addition, the lack of physical money will be helpful to identify any crime – as there will always be a digital copy of the transaction made. A cashless society will make the source of funds always identifiable, thus minimising crimes such as money laundering; it will point out any illegal transactions. To add on, a cashless society also saves time and money. How so? Say that the world would decide to stop printing money and producing coins. Think about the money that would be saved from that process. It takes money to make money! You will also save time by not needing to go to the bank to deposit a cheque – the money was sent directly into your bank account. Other than that, you’ll be saving time by not going to the ATM, as mentioned before. 

Currencies also made our lives a tad more difficult – you’ve got to exchange your money before going abroad and you may be losing money due to a negative exchange rate. Credit cards take all of that away. For example, deVere Vault allows the user to load, convert and purchase in 27 different currencies – making the switch from one currency to the other by using the best rate possible. This doesn’t only ease your mind but also gives a sense of freedom – you can roam around, travel and still be covered. Moreover, transactions are made much quicker – don’t worry about having the right change – just tap your phone or card and you’re done! 

*Insider.com