Pros and Cons of Cashless payments

Cashless payments  is a system or a facility that enables us to transfer funds held in accounts at credit or similar institutions to be transferred to a  payee on receipt of a payment order.It allows users to make payment 24 hours a day 365 days a year from the comforts of our home or office as per our convenience.

Payment methods have been morphing through various channels: from cash to cheques, to credit cards and debit cards, and now to online banking and mobile commerce. With the  click of mouse  or mere tapping of a button we can link the service or app account to our bank  account or payment card.With that done, we can start paying for our wares with our digital wallet. Even our government has announced a slew of measures to promote digital and card based payments to curb the use of cash in the system.

Pros:

1>.Anyone can pay bills without needing a bank account.This is beneficial particularly for the poor.

2>By virtue of being traceable, cashless transactions can help prevent terrorist financing, money laundering, fraud, and tax evasions. Paper money tends to end up in the black market because it can’t be followed the way digital exchanges can.

3> It reduces the cost of printing hard cash.

4>Carrying cash makes people vulnerable from theft,robbery,snatching.Thus going cashless gives complete peace of mind.

5>It saves precious time as money is moved more easily and effectively.

6> Prevent circulation of fake notes in the market.

Cons:

1>The personal computer systems used to access account management or online shopping where credentials may be input, may be compromised leading to exploitation of our confidential information.

2>Without using a specialized, secure system, users have no good way of knowing they are using a safe computer that isn’t stealing their credentials.

3>When it’s time to to “lock down” an account because fraud or criminal activity is discovered, cash backups come in handy. In a cashless society,  many victims of fraud would find themselves with locked accounts and no way to access funds until the case is solved.