We live in a digitized world, where smartphones are dominating in every possible sector. That increased the popularity of cashless payments. Nowadays, the majority of people prefer cashless payments, they hardly carry any cash with them.
Cashless payments have made the shopping experience very convenient. In addition, in the Coronavirus pandemic, where everyone is required to maintain social distancing, cashless payments have become bliss. Cashless payments are the safest way to purchase as it is easier to track every transaction.
Let’s see some statistics about cashless transactions in the USA and around the world.
- Most of the countries, including the USA, are trying to replace hard cash with digital money. In 2019, $26.6 billion were transacted through the cashless method in the USA.
- BCG analysis expected that digital transactions will add 1.2 % to the annual GDP of the USA.
- In 2020, 5 billion cashless transactions occurred in the USA.
- In Sweden, out of 1600 banks, 900 branches do not accept cash deposits.
- Asia is leading the digital payment market.
- In India, over 7 billion rupees were transacted through digital payments, and it reached up to 35.6 billion rupees in 2020.
People nowadays are using virtual wallets, cards, and mobile payment apps to complete their financial transactions. Mobile wallets are the easiest way for digital payments. All you have to do is enter your receiver’s number or scan the provided codes, and the amount will be transferred in no time.
However, there are many pros and cons of digital payments. The benefits of cashless transactions are lower crime rates, less money laundering, less handling time, and easy exchange in foreign currency. On the other hand, the drawbacks of digital money are exposing your personal details, possible data breach, and it’s difficult for senior citizens with very little knowledge of technology.
Currently, there are many mobile wallets available in the market, such as,
E-Payment services include mobile banking apps, Google Wallets, Apple Pay, PayPal, Samsung Pay, and many more.
Coupon wallets let users link all their coupons and loyalty cards in one place and use them as per their needs. It is very convenient as you don’t have to carry your cards every time. For example, Starbucks mobile wallet and Walmart pay.
Peer-to-peer payment wallets
Peer-to-peer wallets let you transfer the amount by sending the receiver or giver a request on the app. It is very useful for group outings, as one person can pay at the time, and others can pay him their due amount later through the app.
Cryptocurrency is a hot sensation nowadays. Cryptocurrencies such as Bitcoin and Altcoins work as regular wallets carrying the equivalent value.
Hybrid wallets allow users to choose both cash and digital currency at the same time. Users have the freedom to opt for any currency at the time of the payment.
Digital currency has grown to be the new normal in today’s era. It is safe, secure, and convenient. Thus, the majority of countries are turning towards implementing digital money in every sector.
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