Across the globe, more and more countries are moving away from cash and embracing the idea of a cashless future. According to a recent estimate by consulting firm, Capgemini, electronic payments will grow about 10.9 percent a year between 2015 and 2020. While coins and paper are still the popular way to pay for things in most countries, cash appears to be losing the battle to electronic payment methods long-term.
At a closer glance, there are very few corners of the world where electronic transactions are not growing rapidly. Scandinavian countries are well on their way toward cashless societies. Many banks in Sweden no longer have cash on hand. In Kenya, local mobile phone company Safaricom is responsible for the push to electronic payments, not the banks or the government. As far as the most talked-about location, China uses PayPal-like wallets created by Chinese online giants (Alibaba and Tencent) for online payments.
What is the driving force behind a cashless economy? The majority of businesses will likely tell you its security. As more and more businesses are targeted by thieves, some businesses are stepping up and responding by removing the problem (cash) altogether. Manager of The Watch House Emma Burgess, for example, has created a cashless café.
“Late last year, we had four break-ins within two months, where thieves targeted our cash takings,” Burgess explained to The Financial Reviews. “That was the driving force for this: security.”
The Likelihood of a Cashless Economy
A recent report from G4S, which manages cash distribution systems, revealed that physical money now accounts for 9.6 per cent of global gross domestic product – up from 8.1 percent in 2011. In addition, there are 500 billion banknotes and trillions of coins in circulation today. Even with the push to move away from cash, … Read More..Read More →