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Will mobile payments eliminate the use of cash in the near future?

Mobile payments are commonly done nowadays and it is no longer considered as an alternative form of payment. There are many places that no longer accept cash but there are more areas in the world that still prefer the payment method of cash. When we think about having a cashless society, it might be possible because of technology, though there are a lot of people who do not own a mobile device or a computer.

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When cash no longer has value?

Perhaps, in the future, our physical money such as banknotes and coins will become like those relics of the past and be displayed for viewing in certain places such as museums. All hard cash might disappear from our world and we will no longer use bills and coins to pay. It might come to that time when banknotes and coins will no longer have value as financial transactions are made using online payment methods.

Electronic transfers

Our payment system will become solely that of electronic transfers by using technology such as our computers and mobile devices. There are some countries that are in a hurry to get rid of cash, and cashless societies such as that of Sweden has emerged. There are other countries that have fewer cash transactions and more mobile payments such as China and Korea.

Handling cash

One of the reasons why is there are governments that prefer to have a cashless society is because handling cash does have a high cost. Those stacks of bills and a pile of coins are cumbersome for both consumers and banks. Even retailers prefer mobile payment methods for transactions because it speeds up their checkout time. Online merchants have the ease of gaining income because of mobile payments. 

Paper money

To make paper money is an expensive process. There is also the need for the minting of the coins and then the printing of the banknotes. To transfer money, it has to be done using secured vehicles such as armored trucks. To store the cash, it has to be under lock and key and in vaults, and banks must use other security measures.

Counting the money

Financial institutions such as banks need to arrange the cash and bundle it. Then, there is the difficulty of giving and receiving paper money and coins, unlike mobile transactions that specify the exact amount, making it no longer necessary to give change or count the money.

Mobile payments

The demand for mobile payments is fast rising. The demand is due to those who prefer to use mobile payment methods. To make digital payments are preferred by millions all over the world not just because it is more convenient than cash transactions, as this kind of payment method also makes payment transactions become recorded and organized.   

Cashless societies

The biggest hindrance to having a cashless society is the preference of a lot of people to use cash. To make payments using mobile methods is deemed to be not as secure as paying in cash. Though more places in the world are using digital payments, more cashless societies will come about in the near future because it is required by the booming world economy.