Cashless everything: The future of consumer spending?

Paymob
July 5, 2021

The idea of going “cashless” is one which once seemed pretty far fetched… In the last few years, this concept has morphed into a reality for a number of digital focused economies.

Going cashless means using electronic methods to pay for stuff/transact, instead of cash. This could mean using credit cards, e-wallets, and so on. 

Since the first bank started offering online payment options in the 1990s, the world has slowly inched towards a cashless economy. But somewhat ironically, nothing has boosted this ideal more than the pandemic as experienced this past year.

And here’s how.

The Pandemic and Consumer Spending

With the COVID-19 pandemic came massive lockdowns, and the era of social distancing. This meant many businesses couldn’t open their stores or make a profit during that economic ‘brownout’. So they went online.

Business owners refocused their resources on their online presence, providing their customers with an avenue to order products and services online, and complete their payment on the web too. 

People found out they could pay for things from the comfort of their couches, and without touching any paper money. It was bliss.

Also, the fact that cash was suspected to be a prime tool for the transmission of the disease, helped individuals embrace the no-cash life faster – no bucks, no docs.

For a while, cash took a backseat, while contactless payment methods like mPOS and emerging SoftPOS took centre stage. And since then, various countries have leaned towards the idea of a fully cashless society. For instance, a 2020 survey by the National Retail Federation and Forrester revealed that 67% of US retailers surveyed, now accept some form of no-touch payment. 

Sweden, a forerunner in the cashless race, also estimates that in 2023, it’ll go digital. The UK isn’t far behind too.

But why is everyone dropping their money and picking up their card? 

What’s the Fuss about Going Cashless?

There are several benefits to the cashless trend. And we are going to look at some of them right away.

  • It’s Convenient: Instead of carrying wads of cash for just one payment, cashless customers can buy what they want, and in whatever quantity. With no worries.

Let’s not forget the time that can be saved with just one tap or a quick swipe.

  • It’s Safer: Carrying a slim credit card or a mobile wallet on your phone makes you less of an easy target for robbery than carrying wads of cash. Obviously. And paper money can hold a lot of nasty germs and bacteria, so your card is a better option.
  • It’s Cheaper: For businesses, the banks, and the government. A lot of funds and resources are wasted in the minting, transportation, and protection of money. With a cashless economy, all these expenses will reduce drastically.

Like we said earlier, a lot of countries are going cashless. And it’s not just the big ones. Other countries that mostly operated informal, cash-oriented economies – like MENA countries – are shifting their focus to a cashless payment system. 

So why wait? Join the future before you become the past. Scale-up your business payment system with SoftPOS. Remember, all you need is an NFC-enabled device, a trusted Paymob partner and a great dose of ambition.

Or you can be the trusted Paymob partner. 

Whatever road you chose, we’ll be there every step of the way.