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, the reality of fully cashless economy appears to be very far off.
In a recent speech, Victoria Cleland, the Bank of England’s chief cashier, commented that “Cash is vital in supporting financial inclusion.”
Then, there are the major concerns involved in electronic money. Many are spooked by the issues of data security and technological reliability. For consumers, there is also the risk of unwitting overspending.
Where to Find Secure Payment Processing
For businesses, it can be difficult to find affordable and secure payment processing solutions for their customers. As more and more consumers choose to shop online and leave their cash behind, merchants are doing their best to provide the very best in payment options. If you need safe processing for your business and are searching for a provider, consider the wealth of information Best Payment Providers has to offer. Find helpful information and reviews on industry-leading providers, like payvector.
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry has helped thousands of business owners save money and time.