Cashless Transactions: The Pros And Cons

Posted on Aug 3, 2022 | 3-minute read

Since the pandemic has begun, the number of people and companies utilizing digital platforms as a medium for selling goods and services has increased exponentially. This attempt to modernize the norms of commerce in line with keeping both consumers and business owners safe from the COVID-19 virus has caused an uptick in digitized payment transactions, accelerating the shift from cash to digital options such as QR payments and the use of e-wallets. 

Since March 2020, many countries have been moving towards a cashless society, in which a growing number of transactions have gone through the use of Credit and debit cards, electronic payment apps, mobile payment services, and virtual currencies.  Many current financial practices and transactions already occur without cash, and many financial institutions, companies, and even governments are strong advocates of the shift.

Before the advent of the pandemic, the concept of living in a cashless society seemed like a Black Mirror episode, where its technological advancement can cause major innovations and conveniences in both individuals and businesses, but if used irresponsibly, could cause dystopian-themed feelings in today’s society.  It is no secret that going cashless has a myriad of effects on money and banking, both good and bad. But local digital wallet providers like GCash, ensure that the advantages outweigh the disadvantages and that the assets that its users entrust into their services are in good hands. But due to some social issues and the fact that technology is relevantly new, understanding the full context of living in a cashless society is important to minimize its setbacks. 

Consumers who are more exposed or have a proper understanding of a cashless society will likely find it to be more beneficial. Having your smartphone with you gives you the same access to your cash assets as a wallet once had. Here are the benefits of cashless transactions

Superb Convenience

With the ongoing takeover of mobile payments in today’s daily transactions, you surely have heard people express their stories of convenience. The ease of conducting financial transactions is the biggest motivator among individuals to go digital. It eliminates the need to carry wads of cash, stacks of cards, or coupons when traveling. You also don’t have to spend time waiting in long queues at your local ATM, making it an easier and safer option when going out. All you have to do is tap to scan your phone to pay as most merchants support cashless transactions from mobile wallet providers such as GCash. Since payments can be done through your smartphone, you don’t have to be physically present to conduct your transactions within office hours, saving time, money, and effort on the road, and giving you more freedom and flexibility.

Life is G with GCash. Accepted in more than 4.5 million of its partner merchants, everyday payments are made safe and easy. Users may use their mobile phones to pay for their wants and needs almost everywhere in the country. 

Minimizes Potential Crimes

According to accountants, among all the financial assets available, cash is the most susceptible to theft both in businesses and individuals. Its belongingness is difficult to establish in the absence of proper proof, and being the most liquid, the ease of cash transfer can make it more prone to fraud or illegal activity, making it hard to trace. Carrying big amounts of cash makes you an easy target for criminals, which also imposes a hazard to your safety. Placing your funds in an e-wallet greatly reduces this risk. 

Unlike paying in cash which may be cumbersome and time-consuming, the efficiency and effectiveness of ePayment technologies as a transaction medium reduce the risk of robbery and other cash-related crimes, improving public safety in dangerous and skeptical places. Aside from theft, most financial crimes such as money laundering should also dry up in a cashless society thanks to the transparency in transactions and the “Know Your Customer” or KYC identification step that mobile wallet providers such as GCash require before opening an account and using its services. 

GCash, the leading mobile wallet provider in the country, spearheaded the Customer Protect Program. This ensures that customers’ hard-earned money is kept safe and away from fraudulent transactions. Aside from this, GCash launched a campaign #GCheckMuna, which aims to protect its customers from the harms of fraudulent transactions through awareness and basic safety measures. 

To learn more about Customer Protect by clicking here. 

Lesser Need For Cash Management

From a business owner’s perspective, dealing with cash will accrue expenses over time. Businesses need to securely store money, run to the bank to get more when they run out, deposit cash when they have too much on hand, and in some cases, hire security to help out protect their store from unwanted robberies and help out transporting money to ensure its safety. Thanks to mobile wallet providers who cater to businesses such as GCash, the need for worrying about the resources and time needed for protecting large amounts of money can be a thing of the past. 

With GCash Pro’s Biz Starter 99, business owners can experience seamless business transactions without the need of having large sums of cash hidden in a cash box. For only 99 pesos, entrepreneurs can enjoy an upgraded P 500,000 GCash wallet limit, cash backs on 5 bank transfers, insurance coverage, and up to a 10% interest rebate from GLoan. With these features, businesses can focus more on development and expansion and worry less about the management of their funds. 

Another feature of GCash that helps business owners is the Getpaid Payment Portal. It helps business owners manage their transactions through a simplified dashboard that helps them understand the movements of their funds. This payment portal makes fund transfers convenient, from receiving payments to processing refunds, to making withdrawals. 

Click here for more information about GCash PRO Biz Starter 99. 

For more details on how to manage your funds with the Getpaid Payment Portal, click on this link:
https://help.gcash.com/hc/en-us/articles/900005473546-How-to-use-Getpaid-Payment-Portal-to-accept-GCash-payments-

Depending on one’s perspective, going cashless may tend to be problematic in some ways. Here are major setbacks associated with cashless transactions

Limited Privacy And Potential Risk Of Hacking

While secure and convenient, electronic payments aren’t as private as its counterpart, which normally allows you to spend money and receive funds without having to ask for several details. Although you may trust your digital wallet provider, the more information you have floating online, the more likely it is to wind up in malicious hands such as hackers. These are the electronic world’s robbers and thieves. They primarily target consumers rather than the digital wallet itself, creating numerous ways to deceive you into providing more details that may lead to them accessing your online wallet. Even though mobile wallet providers and federal laws protect you and will help you retrieve your lost money, restoring your financial standing after a security breach is still inconvenient, especially without alternative ways to spend your money.

Technological Problems 

Having your smartphone double as your wallet sounds very advantageous and convenient until your phone battery dies or your internet won’t work, leaving you penniless in a sense for a moment. Glitches, outages, and human errors can also cause problems that may leave you unable to use your funds. Merchants are unable to accept your payments when their system is faced with server maintenance issues or system malfunctions. This is especially problematic when traveling to places lacking banking infrastructure or other payment methods. So remember to always keep your phone charged, it may make or break your next trip outside. 

With a GCash wallet, don’t fret over technological problems or system outages as there are over 300,000 community stores around the country that can accommodate services such as cash in, cash out, pay bills and send money. This ensures that GCash users are able to do their essential transactions even without their mobile phones. 

To learn more about how to turn your store into a GCash Pera Outlet, click here. 

Temptation To Spend May Increase

When you spend cash, physically taking it out from your wallet and its absence in your pockets helps you be aware of each transaction’s financial impact. With the ease of access and simple steps to paying for something digitally, one may tend to lose track of the money they spend as it’s easy to swipe, tap, or click when spending from your phone. Hence, a reason for people to overspend. 

With the different effects of cashless transactions on society stated above, it is safe to say that the advantages outweigh the setbacks when customers are well educated about the proper usage of E-Wallets. Ensure your money’s safety by working with trusted mobile wallet providers who value their customer’s security such as GCash. 

References:

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