Benefits Of A Cashless Society
Over the last few years, there has been a clear shift away from using cash as a form of payment. Credit and debit cards have taken over. Almost 30 percent of Americans don’t pay for anything with cash in a typical week. The rise of a cashless society is a good thing. Here are some of the benefits that it will present.
Less Risk For Business
Many of us are familiar with action movies about bank robbers, trying to bust into a safe to unlock a huge payday. But any business that keeps a lot of cash on the premises can become a target for thieves. For example, gas service stations are frequently the targets of violent attacks.
These attacks cause a lot of damage to business premises. For example, criminals might attempt to pry open the cash draw on the till. But this can also take a big toll on staff, which might need to take time off work to deal with the mental trauma these robberies can cause.
Improved Security For Customers
Businesses aren’t the only ones who will benefit from greater security in a cashless society. Sadly, there are plenty of examples of people being mugged because they are carrying a substantial amount of cash in their wallets.
Even if a credit or debit card is stolen, it can be deactivated instantly. This stops transactions from going through and prevents fraudulent activity.
Lower Costs For Business
To make sure that they aren’t targeted by thieves, many businesses invest in secure places to store their cash. They also need to pay for a way to transfer the money to the bank. This can be a substantial running cost.
Faster Transaction Speed
When a customer pays in cash, the business will need to store that money. In many cases, they will only go to the bank once every few days. Then, the money will need to be counted before it can be deposited into the bank account. This will be a slow process.
However, when a credit or debit card is used in the transaction, the money will be automatically transferred to the business’s account. In most cases, it will show up within one to two days.
Money is often used for corruption. It is difficult to trace, making it the ideal choice for under-the-table deals. On the other hand, authorities will be able to see every transaction made on a credit card, so they know who is funding criminal activities and to whom the dirty money is flowing.
Passing cash from one person to the next has the potential to spread infectious diseases. On the other hand, a cashless society will facilitate contactless transactions.
Easier To Generate Strong Data
Since all the spending can be traced, businesses will be able to generate strong data. This can prove very useful when planning the future. For example, they will be able to tell what items are the most popular. They can also get real-time data, informing them of when each sale took place.
A cashless society will have dozens of benefits. Businesses will be able to operate more effectively. Customers will get more convenience. Society, as a whole, will become safer as thieves won’t be able to target the vulnerable. Please note that this is only some basic information on a cashless society. Please call us at 310.826.7000 for more information.