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The way we pay for goods and services has undergone several changes since trade began. In a way, the evolution of payments is a significant indicator of our advancement as a species. The original methods specified our old ways of living. Likewise, the present payment methods driven by cutting-edge technology witness our technological triumphs of today. However, in the last few years, we have accepted cashless payment as the preferred mode of money transaction due to its ease, safety, and convenience. Though cash is still in existence, digital payments continue to be in regular use due to several reasons.
There are several benefits of going digital, some apparent, some not so much. Here is a look at the same:
1. It Is Easy and Convenient
It is a human tendency to look for convenience in all aspects of life. Going digital has made our life more comfortable than before. Therefore, we prefer making payments digitally or by cards rather than standing in long queues for withdrawing money from banks or ATMs.
Besides this, digital payment alternatives have reduced the problem of carrying cash in the pocket, which lessens the risk of the money getting stolen. You do not have to worry if you have forgotten to take your wallet with you as you can make the payment with a swipe of the card or your smartphone.
2. Instant Payment Is a Delight
Most people would have witnessed the slow pace at which cash transactions occur, whether at a bank or any store’s point of sale (POS) terminal. However, with digital payment methods, such as National Electronics Fund Transfer (NEFT), Immediate Payment Service (IMPS), and Unified Payments Interface (UPI), BNPL the process of payments is instant, saving significant time.
3. Digital Payments Have Become More Secure
Digital transactions, especially UPI, QR scan, and digital wallets, have altered people’s outlook. These days, people avoid carrying cash and sometimes even credit/debit cards as digital payments offer a more secure way of making a payment than carrying huge amounts of money or cards. There have been several cases where cash was stolen. There have also been several card fraud cases where fraudsters have used credit and debit cards to make exorbitant amounts of payments.
But digital payment is more secure compared to carrying cash and cards. For example, when you lose your phone, it is tough for someone to break into your phone and accesses your e-wallet. They are heavily encrypted as e-wallets and phones involve your fingerprint or code to unlock. Hence, digital methods are one of the safest ways to make payments. In case of any threats, you have the option to block wallets or cards that cash does not provide.
4. Card and Digital Payments Can Be Tracked Easily
Cash is untraceable, so are all transactions done through cash. Hence, it isn’t easy to track your previous transactions effectively. With digital and card payment modes like debit cards and e-wallets, you get a notification right after making a transaction.
Furthermore, you have the complete transaction history available either on your phone, email, or internet banking portal. This helps you monitor your spending by avoiding ambiguity and confusion while tracking payments. It helps in creating well-informed money decisions.
5. Cards and Digital Payments Offer More Incentives
Nowadays, several businesses offer customers incentives to use their card or digital payment methods, such as e-wallets. For example, if you order food or book a movie ticket, you may avail of special discounts using your e-wallet or a particular bank’s debit card. You may also receive free gifts or coupons when you use these methods for your transactions.
Further, you may even accumulate points with every transaction. You can then redeem these points with specific retail partners or convert them into cash and much more. So, when you use cards and digital payments, you tend to save a small amount of money.
To Sum It Up
Using cash, cards, or digital payment methods ultimately depend on a particular situation. There may be situations where cash may come in handy when you are unable to make digital transactions. Having said that, as the world moves ahead and digital technology advances, modern payment methods prove to have several benefits over cash payment. And it is becoming increasingly clear that a cashless society is about to become a reality.