In recent years, the need for physical cash has waned, and new methods of payment have risen in popularity. Instead, cashless transactions are now the way to go for daily transactions. More people nowadays are using different electronic payment methods for their regular needs – these include, but are not limited to, credit cards (Visa, MasterCard), e-wallets (PayPal, Paxum), and online banking. While there is still merit to using cash, there are also drawbacks that discourage the use of it. Let’s look at 3 examples of measures that have made the use of cash almost obsolete.
Rise of Cashless Payment Methods
As mentioned before, the rise in popularity and usage of different kinds of electronic payments have made cash less viable as a form of payment. Ever since the Internet became the colossal titan that it is – and as more and more people use its services on a daily basis – many companies and businesses have shifted their focus towards the online market. Because of this, they now offer cashless payment options to their customers. After all, these payment methods offer convenience to its users in different ways: credit cards make it easy to make purchases on the fly, e-wallets make our life easier by safely storing our funds, online banking allows us to safely and securely pull funds straight from the bank without the need to withdraw cash, etc. Making transactions nowadays has never been easier.
Cash Handling Fees
A cash handling fee is a fee that is charged by businesses in order to cover the costs that are incurred when handling cash transactions; the transaction process generally involves counting, sorting, storing, and transporting the cash. Due to how labor-intensive, time-consuming, and dependent on tight security cash transactions can be, many businesses find the need to charge cash handling fees to cover for any costly expenditures made. Since these fees can be a massive deterrent to customers, businesses can incentivize customers to instead go with other payment options and reduce the overall price of the fees needed.
Cashless transactions can encourage customers to go with electronic payment methods over the use of cash through a wide variety of unique and enticing incentives. For instance, some stores offer discounts and rewards to customers who pay with a credit card or through a mobile app, while other stores might have a loyalty point system as well. Nonetheless, these incentives can encourage customers to opt for and rely on electronic payment methods instead of using cash.
While there may be those who still use cash in their daily lives, or even prefer it over alternative payment methods, there are also a bunch of measures that can discourage people from using cash in the long run. Cash handling fees alone can discourage people from using cash from sending physical cash, but others may be exposed to cashless incentives and permanently stick to using electronic payments after. With how more popular cashless transactions are now these days, the need for cash has started to dwindle, and will likely stay like that in the near future.