In today’s digital age, modern technology has reshaped how we perform our day-to-day activities. Shopping, for example, has become more convenient thanks to the availability of various cashless alternatives like credit cards, digital wallets, and mobile banking. Though paying with cash is still a common option, more people are gradually incorporating different cashless payment methods into their shopping experience.
Let’s take a look at the six advantages of going cashless when shopping so you can start trying it out for yourself.
1. It’s Convenient
Perhaps the most obvious advantage of cashless shopping is convenience. With a credit card or digital wallet, you no longer have to carry large amounts of cash or search for the exact change when paying. Cashless payments offer a faster and easier way to pay for your purchases, whether you’re shopping online or at a physical store. As a result, you’ll get a smoother and more efficient shopping experience.
Going cashless is also beneficial for merchants. This is because handling cashless payments is often easier to process since the money goes directly into their business account. Providing different cashless payment options, like mobile banking, QR code payment, credit cards, and near-field communication (NFC), also allows merchants to cater to the payment needs of different customers. With cashless payments, merchants can streamline their business processes and improve their customer service.
2. It’s Safer and More Secure
Another advantage of going cashless is it keeps your money safe and secure. Carrying cash can pose a security risk and, if it gets lost or stolen, the chances of you recovering it can be quite low. With a credit card or digital wallet, however, there’s no need to bring physical cash—thus, minimizing your financial risk.
Cashless and digital payment platforms also offer more security compared to bringing physical cash. In case your credit card gets lost or stolen, you can quickly inform your bank and have it deactivated. Many banks have mobile apps that allow their clients to access their bank accounts online and configure their account settings and credit card status. Digital wallets, on the other hand, use cutting-edge security measures (e.g., two-factor authentication, facial or fingerprint recognition, and one-time passwords) to protect your banking details and prevent fraudulent transactions.
3. It’s Easier to Keep an Eye on Your Spending Habits
Each time you use your credit card or online banking platform, your transactions are automatically recorded. This makes it easier to track your spending and understand your financial habits. Some digital banking platforms even offer tools for financial management, like spending categorizations and notifications, so you can budget your money easily and keep things organized.
4. It Allows You to Make International Transactions with Ease
One of the biggest benefits of using cashless payment systems is its global accessibility. Whether you’re shopping abroad or making a purchase from an international website, you can use your credit card or digital wallet to make payments without worrying about currency conversion or carrying foreign legal tender. As such, going cashless opens up a world of shopping possibilities that physical cash simply can’t provide.
5. It Promotes Savings and Rewards
To encourage more people to use their credit cards or digital wallets, or engage in digital banking, cashless payment platforms incentivize users with a wide range of deals, promos, and rewards. A lot of credit cards, for example, let credit card holders convert their points to air travel miles so they can travel for free with participating airlines. Some credit cards also offer interest-free periods—which usually last between one to two years—to those applying for new credit cards.
Digital wallets, on the other hand, offer various discounts, online gift certificates, and vouchers that can be used with their partner stores, apps, and websites. Some digital wallets also reward users with cash bonuses if they successfully invite people to use their platform through their referral program.
Moreover, digital banks allow users to grow their money. By creating a digital savings account or digital time deposit account, users will have another channel to let their money mature. The growth per annum, however, will depend on the digital bank’s interest rate.
6. It Can Reduce Your Carbon Footprint
The manufacturing and transporting of physical cash can take a toll on the environment. To produce banknotes and coins, central banks have to consume large amounts of natural resources to supply the world with physical currency. Transporting cash from one place to the next also generates pollution from planes, trains, and cars that emit greenhouse gasses into the atmosphere. By contrast, digital payments produce less pollution because they don’t need cash to complete the transaction. Therefore, going cashless is a great way to reduce your carbon footprint.
The future of shopping is undeniably digital, and going cashless is just one of the many ways people can buy things in the modern world. Thanks to the convenience, security, and financial management benefit it provides, making transactions using a credit card, digital wallet, or mobile banking makes shopping more enjoyable and relaxing.
This article is contributed by an expert guest author.