Are we heading towards a Cashless Society? While the saying, “Money makes the world go round”, will still be there – the way we collect and spend money is likely going to change, leading some to speculate if we are moving to a truly cashless society.
Let’s face facts COVID-19 pandemic has been an influential shock to our way of life that could have lasting effects on how we do business in the future. A key area that has been affected is the money we handle every day.
COVID-19 Driving adoption:
The lockdown has promoted the rapid adoption of eCommerce and ePayment, which could significantly contribute to the acceptance of cashless payment methods.
A Cashless Society -The Benefits
The technology has been around for a while, with numerous innovations and improvements that have not only made it more secure and also contactless. Applications like Snapscan, Zapper, E-wallets and NFC technology indicates you won’t even need to hand over a credit card or interact with a credit card machine at all, reducing the chances of spreading the virus.
There is a multitude of deciding factors that will affect the adoption of these payment methods- Some of the most influential right now include:
- Legislation and Regulations: Once we come out of lockdown, the government will continue to prevent and contain the spread of the virus through various new legislation and regulations that may require the way you operate to change.
- Public Perception: If the Public see safety and value in cashless and contactless payments, then businesses will need to adapt to the changing needs of their customers.
Unfortunately, there will be unintended consequences brought about by the COVID-19 outbreak; and these payment methods might be the only way to operate for the foreseeable future.
Will we see banknotes and coins go out of circulation anytime soon?; probably not, however like cellphones which replaced many landlines so too will cashless transactions see preference over physical currency.