# data[].attributes.attachment_link.title
The “Cashless Society” is a Horrible Idea

# data[].attributes.attachment_link.description
Phasing out physical money may be convenient for some, but it leaves a lot of people worse off.

# data[].attributes.attachment_link.readable_text
KINGSTON, Jamaica - Prime Minister, Andrew Holness, says there is no attempt from the Government to remove cash from the system or to create a cashless mandate.

Speaking on May 31 at a digital transformation forum of the Inter-American Development Bank (IDB) at the AC Hotel in Kingston, Holness said that citizens will be able to choose whether they participate in the ongoing digital transformation.

"There is no mandate to be cashless. Just be rational - why would the Government spend billions of dollars to change the currency to a new durable banknote that we don't have to change ever so often, only to turn around and take it out of the system," Holness reasoned.

He said Jamaicans must responsibly consume information and reminded them that, "as your Prime Minister, I have a duty to call it out when I see it".

"We have spent money to put in place a new, durable note that accounts for the inflation in the society [and] the convenience of the notes that you need to make payment, and then to just turn around and say 'no'?" Holness continued.

He added that while there are concerns about digital currencies, investments continue to be made both in the technology and the currencies themselves and pointed out that some of the threats that exist in digital currency are those that also exist in cash.

Holness said that, instead, focus must be placed on the strength of the country's laws to protect consumers and not in fear of the technology.

He warned that there is an "unnecessary, unreasonable and dangerous trend" emerging to keep Jamaica from being on the cutting edge of development by spreading misinformation.

Moreover, as the National ID is rolled out, the Prime Minister said that increased focus will be given to the national digital payment infrastructure.

The Central Bank's digital currency, JAM-DEX, was launched in 2022.

READ: JAM-DEX... finally

"I want to take the opportunity to assure everyone that neither the digital ID nor digital currency will be mandatory. There will be no compulsion to use them. The reason we are implementing these things is to make the lives of citizens easy. If you choose to use them, great to you, if you do not use them, that is your choice," the Prime Minister reiterated.

Furthermore, he said the digital transformation is not an exchange of convenience for fewer rights and freedoms.

"There will be strong safeguards to ensure that your personal data and information is properly secured and used for the purposes that the citizen has provided it for," he affirmed.

Holness said that no one will be left behind, pointing out that, "we know that many persons are not digital natives and will require assistance and support in conducting transactions and interfacing with technology, so we have started to put together a strategy as to how we will help those who choose to be involved in this digital transformation".

He noted that the country's network of post offices will be used as digital service centres to provide hands-on support for those citizens who need it.

# data[].attributes.attachment_link.title
No cashless mandate for Jamaicans, says Holness - Jamaica Observer

# data[].attributes.attachment_link.description
KINGSTON, Jamaica - Prime Minister, Andrew Holness, says there is no attempt from the Government to remove cash from the system or to create a cashless mandate. Speaking on May 31 at a digital transfo...

# data[].attributes.attachment_link.title
The Cashless Society: What It Means for Merchants -

# data[].attributes.attachment_link.description
By: Discover Global Network The disappearance of cash—and the world’s full conversion to digital payments—has been forecast since the electronic transfer of funds was introduced in the ’60s. It then seemed inevitable by the time…

# data[].attributes.attachment_link.readable_text
For decades, world leaders have gradually moved towards centralizing financial and technological control, often under the guise of modernization and efficiency. The push toward a cashless society has been a recurring theme among globalists, financial institutions, and policymakers. Now, under the leadership of Donald Trump, the United States is seeing a rapid acceleration toward a fully digital economy. Yet, few are paying attention. While some of his executive orders appeal to common sense and conservative values, the real transformations occur quietly-ushering in a system that aligns closely with the globalist agenda many have long warned about.

A few months ago, we wrote about " Project 2025," which represents a significant shift towards what has been called the "Post-Constitutional Era." This initiative, beginning in the USA but designed to replicate worldwide, envisions a system where national constitutions would become secondary to globally-mandated policies. While many have dismissed these concerns as conspiracy theories or merely domestic policy changes, the evidence suggests otherwise. Through an unprecedented number of executive orders, Trump is systematically restructuring existing systems to align with a broader agenda. A prime example is the executive order on modernizing payments ( White House, 2025), which lays the groundwork for a cashless system.

As believers seeking to navigate these changes with wisdom and discernment, we must understand both the practical implications and the spiritual dimensions of such a transformation. The digitization of money raises profound questions about privacy, control, accessibility, and even eschatological concerns for many Christians. This article examines the current trajectory toward a cashless society, evaluates it through a biblical lens, and provides guidance for believers seeking to remain faithful stewards in an increasingly digital economy.

The movement toward electronic payments and reduced reliance on physical currency has been gaining momentum worldwide for years. In 2015, India launched its Digital India programme with the explicit goal of transforming the nation into a "digitally empowered society and knowledge economy," focusing on making financial transactions electronic and cashless ( Kumar, 2023). This initiative has resulted in remarkable growth through systems like UPI (Unified Payments Interface), which processed 113 billion transactions in 2023 while charging merchants 0% fees, compared to the 1.5-3% charged by traditional payment networks like Visa and Mastercard in the United States ( Thompson & Gupta, 2023). As noted in a recent Christian perspective analysis, this global shift towards digital currency systems may be laying the groundwork for unprecedented economic control ( Grace for Purpose, 2024)).

In America, the transition away from cash has accelerated dramatically under recent policies. While some executive orders address common-sense cultural issues-like stating biological facts that men are men and women are women-to gain public support, a more subtle agenda advances the digitization of the economy. Under the guise of reducing fraud and inefficiency, the Trump administration has mandated the end of U.S. government checks in favor of electronic-only disbursements-effectively forcing a shift to digital payments.
Trump signs executive order to digitalize government payments
This transformation, coupled with the February 2025 directive to halt minting new pennies ( Thompson, 2025) -purportedly for environmental concerns-reveals a calculated move toward a cashless system. These changes, implemented alongside strategic investments in AI governance and technology companies-including a massive $500 billion AI infrastructure investment announced in January 2025 ( CNN Business, 2025)-represent a fundamental reshaping of America's financial infrastructure toward global integration-a transformation whose true implications many citizens have yet to recognize.

The technological infrastructure supporting digital payments continues to evolve rapidly. A study by Smith and Jones (2024) identifies four main categories of digital payment technologies currently in use: card payment, e-payment, mobile payment, and cryptocurrencies. Each of these technologies presents different opportunities and challenges for users, businesses, and governments alike.

However, the transition isn't merely about convenience or efficiency. It fundamentally changes how financial transactions occur, who can monitor them, and what level of privacy citizens can expect. As Thompson (2025) insightfully noted: "When you carry a dollar bill, it grants you a degree of privacy... In contrast, when you make an electronic transaction, a significant portion of the world gains access to details about who you are, what you purchased, and where the transaction took place".

What might this mean for our daily lives? How might this impact those who value privacy or who lack access to digital banking services? These questions demand careful consideration as we examine the broader implications of this shift.

Scripture offers timeless wisdom about wealth, financial exchange, and stewardship that remains relevant regardless of the form currency takes. While the Bible obviously doesn't directly address digital payments or electronic banking, it provides principles that can guide our understanding and response.

In Matthew 22:21, Jesus famously instructed, "Therefore give back to Caesar what is Caesar's, and to God what is God's" ( Mark 12:17), acknowledging the role of government-issued currency while emphasizing ultimate allegiance to God ( Bible Hub, n.d). This passage reminds us that while we may use the currency systems of our day, our primary citizenship and allegiance remain with God's kingdom.

The early church demonstrated remarkable generosity and communal care, with believers sharing resources to meet one another's needs ( Acts 2:44-45): "Now all the believers were together and held all things in common. They sold their possessions and property and distributed the proceeds to all, as any had need". This model of generosity transcends the specific monetary system in use and reminds us that our financial resources, regardless of form, should be used to serve others.

When considering a cashless society from a biblical perspective, many Christians naturally turn to eschatological passages, particularly those in Revelation. The most frequently cited text is Revelation 13:16-17, which speaks of a time when "no one could buy or sell unless he had the mark-the name of the beast or the number of its name"(Reddit, n.d.). Some believers interpret this as referring to a future cashless system where electronic transactions could be controlled by a central authority.

How might the rapid shift toward digital currency challenge us to seek biblical wisdom in navigating these changes without succumbing to fear? As governments and financial institutions push for cashless transactions, what does faithful stewardship look like in an increasingly digital economy? These questions compel us to examine timeless biblical principles that can guide us through evolving financial systems while maintaining our trust in God's sovereignty.

While technological advancement often brings benefits, the transition to a cashless society raises legitimate concerns that deserve thoughtful consideration. These concerns range from practical issues of accessibility to deeper questions about privacy, autonomy, and potential for governmental control.

A 2024 research paper highlighted "social, economic, technical, awareness, and legal" challenges associated with digital payment technologies (Sangeetha S, 2024). In Nigeria, efforts to implement a cashless policy have faced hurdles including "financial literacy, infrastructure deficit, poor internet network connectivity, poor road network connecting rural areas"(Chijioke et. al., 2024). These challenges remind us that technological solutions must consider the full range of human needs and circumstances.

For many Christians, discussions about a cashless society inevitably lead to questions about end-times prophecy, particularly regarding Revelation 13:16-17, which describes a time when "no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name"

While interpretations vary, Crosswalk notes that "a cashless society is a sign that the tribulation is near. It is assumed that so long as we are still using cash, we are not living in the end of days"(Cross Walk,2024). However, others caution against over-interpreting technological developments as definitive signs of the end times. As GotQuestions reminds us, "not everything is a sign of the end times"(Michael, 2020). Yet, it's worth noting that the convergence of multiple prophetic signs occurring simultaneously, including the rapid shift toward a cashless economy, suggests these developments may not be mere coincidence but rather a fulfillment of biblical prophecy unfolding exactly as foretold.

How should we interpret these developments? Are we seeing the fulfillment of biblical prophecy, or simply the evolution of human financial systems? Could both perspectives contain elements of truth? These questions invite deeper reflection on how we interpret scripture in light of contemporary developments.

Christians are neither called to wholesale rejection of technology nor uncritical embrace. Instead, we should approach technological changes with discernment, evaluating them in light of biblical principles. The Gospel Coalition notes that "technology doesn't require asking new or novel questions but asking old questions in light of new opportunities" ( Thacker, 2023). As Grace for Purpose ( 2024) emphasizes, we must "exercise wisdom and spiritual discernment in these changing times, ensuring our technological choices align with biblical values".

This principle applies directly to digital payment systems and the movement toward a cashless society. Rather than asking "Is electronic money good or bad?" we might better ask, "How does this system impact human dignity? Does it enable or hinder generosity? Does it promote justice or exploitation? Does it support or undermine community?"

As financial systems evolve alongside digital identification requirements, Christians must exercise practical wisdom in stewarding resources. The integration of digital currencies with digital ID systems means that those who don't align with global financial frameworks risk being excluded from economic participation. We've already seen examples of account freezes and financial restrictions imposed on individuals who don't comply with certain policies or positions.

This raises important questions for believers: How do we maintain faithful stewardship while navigating increasingly controlled financial systems? How can we serve God and our communities if access to financial services becomes contingent on compromising our values? What responsibilities do we have toward those who might be excluded from these systems? As the landscape evolves, we must remember that all resources ultimately belong to God, and our primary allegiance is to His kingdom rather than any earthly financial system.

Navigating the Path Forward with Faith and Wisdom

As we consider the trajectory toward a potentially cashless society, Christians have an opportunity to model thoughtful engagement that neither succumbs to fear nor ignores legitimate concerns. This moment calls for both wisdom and faith - wisdom to understand the changing landscape and faith to trust God's sovereignty over all human systems.

The tension between technological progress and eternal values is not new. Throughout history, believers have had to navigate changing economic and social systems while remaining faithful to biblical principles. From the agricultural economies of ancient Israel to the complex financial structures of the Roman Empire to today's digital economy, God's people have sought to honor Him with their resources regardless of the forms those resources take.

While technology itself is neutral, the accelerating push toward a cashless society appears to be driven by forces that seek centralized control over financial transactions. The implementation of digital-only payments could easily become a tool for the antichrist system prophesied in Scripture. Though we cannot predict the exact timeline, the global momentum toward eliminating cash, combined with advances in digital surveillance and control mechanisms, aligns eerily with biblical warnings about end-time economic control. As Christians, while we can utilize technology wisely, we must remain vigilant and discerning, recognizing that our ultimate allegiance is to God, not to any human financial system. Our calling remains unchanged: to be faithful stewards, to love our neighbors, to protect the vulnerable, and to hold earthly possessions loosely while standing firm in our faith.

As you consider these developments in your own life, I encourage you to stay informed while remaining grounded in scripture. How might God be calling you to steward your resources faithfully in this changing landscape? Have you considered the spiritual and privacy implications of sharing biometric data or sensitive personal information in exchange for financial convenience? What opportunities might these changes present for demonstrating Kingdom values while maintaining wise boundaries around your personal data?
Recommended Articles Further Resources

# data[].attributes.attachment_link.title
America Moving Toward a Cashless Society: Could this be a global Move?

# data[].attributes.attachment_link.description
For decades, world leaders have gradually moved towards centralizing financial and technological control, often under the guise of modernization and efficiency.

# data[].attributes.attachment_link.description
Reducing transaction costs, closing the financial inclusion gap, and fighting corruption are just a few.

# data[].attributes.attachment_link.title
Say No to the “Cashless Future” — and to Cashless Stores | News & Commentary | American Civil Liberties Union

# data[].attributes.attachment_link.description
The ACLU dares to create a more perfect union — beyond one person, party, or side. Our mission is to realize this promise of the United States Constitution for all and expand the reach of its guarantees.

# data[].attributes.attachment_link.title
The Mad Scientists of Monetary Policy: The War on Cash - CFA Institute Enterprising Investor

# data[].attributes.attachment_link.description
Recently, there has been a global movement toward eliminating cash, Ron Rimkus, CFA, observes. It sounds strange, almost bizarre. Who exactly wants to eliminate cash? Why? What would we do without it? Rimkus explores these questions as well as the most critical one of all: Is it good for his mom?

# data[].attributes.body
https://www.nytimes.com/2024/12/07/health/elderly-cash-electronic-payments.html?searchResultPosition=2

# data[].attributes.attachment_link.title
The effect of cashless payments on the internet and mobile banking

# data[].attributes.attachment_link.description
Some of the problems of cash transactions were the inconvenience of handling cash and the limited availability of banking services to facilitate cash withdrawals. The purpose of this paper is to examine the impact of cashless payments on the usage…

# data[].attributes.attachment_link.title
Does a cashless society benefit everyone?

# data[].attributes.attachment_link.description
As paper money disappears, in countries from Sweden to India, some might get left behind

# data[].attributes.attachment_link.description
JSTOR is a digital library of academic journals, books, and primary sources.

# data[].attributes.body
https://www.cnn.com/videos/business/2014/06/03/spc-future-finance-cashless-society.cnn

# data[].attributes.attachment_link.title
America’s Cashless Society - The Problem of Crime in the Electronic Society | Office of Justice Programs

# data[].attributes.body
https://trinidadandtobago.un.org/en/230297-charting-course-cashless-society

# data[].attributes.attachment_link.authors[].name
See all articles by Federico Lupo-Pasini

# data[].attributes.attachment_link.title
Is it a Wonderflul Life? Cashless Societies and Monetary Exclusion

# data[].attributes.attachment_link.description
In many countries, cash is fast disappearing. Credit cards, online banking apps, and digital services such as ApplePay, PayPal, or Venmo are now used by a large

# data[].attributes.attachment_link.title
How Cashless Payments Help Economies Grow

# data[].attributes.attachment_link.description
Because digital solutions make it easier to send and receive money, they boost economic activity. Policymakers and companies should take steps now to accelerate adoption.

# data[].attributes.attachment_link.title
Institute for Culture and Society | Cashless Payment is Booming, Thanks to Coronavirus. So is Financial Surveillance

# data[].attributes.attachment_link.description
Cashless Payment is Booming, Thanks to Coronavirus. So is Financial Surveillance

# data[].attributes.attachment_link.readable_text
© Saravutvanset-RooM/Getty Images

A cashless society is one in which cash, in the form of physical banknotes and coins, is not accepted in any financial transaction. Instead, people and businesses transfer money to one another digitally-via credit or debit cards, electronic money transfers, cryptocurrency, or online and mobile payment services, such as PayPal and Apple Pay. Although no existing society is cashless, many economists believe that consumer preferences, competitive pressures on businesses, profit seeking by banks, and government policies designed to facilitate cashless transactions will soon lead to at least a few cashless societies.

There are various measures of cashlessness, yielding different rankings of countries along a "cashless continuum," but most experts agree that Sweden is now closest to the cashless ideal. Cash is now used in less than 15 percent of transactions in that country, and the value of cash in circulation has declined significantly in the 21st century, now representing about 1 percent of GDP. Swedish retailers and restaurants are now permitted to refuse cash payments merely by posting a sign, and more than half of all Swedish bank branches no longer handle cash. To facilitate the transition to cashlessness, central banks in some countries have introduced government-backed digital currencies to replace or complement banknotes and coins.

Proponents of a cashless society argue that digital transactions are more convenient for both customers and businesses and that cashlessness would cut down on many criminal activities. They also maintain that the trend toward cashlessness is unstoppable, given the increasing digitization of economies and consumers' growing preference for conducting daily business with mobile devices. The trend has been propelled, however, by banks that have intentionally made cash transactions less convenient for their customers (e.g., by closing branches and removing ATMs) to encourage the use of digital services that are more profitable. The global coronavirus pandemic that began in 2020 also contributed heavily to an increase in touchless and cashless transactions.

But there are potential drawbacks to a cashless society. First, it would largely exclude "unbanked" (mostly poor) persons, who do not use or cannot obtain a bank account. Second, it could invite serious breaches of privacy, because few purchases and sales would be anonymous. Third, even minor technological glitches could block access to funds, and systemic failures due to natural disasters or massive hacking could make all purchases and payments impossible. Fourth, during a severe economic crisis threatening the solvency of major banks, depositors would be unable to rescue their money by withdrawing it in cash. Nor could depositors prevent troubled banks from taking a portion of their deposits in "bail-in" scenarios, under which the institution's shareholders and creditors, including depositors, are held responsible for its debts (in the U.S., up to $250,000 of each deposit would be protected from such seizures). Finally, ordinary depositors would not be able to protect themselves from negative interest rates, which central banks in some countries (e.g., Japan) have imposed to combat recession or deflation after cuts in positive interest rates to near zero have failed. Negative interest rates permit private banks to charge depositors what amounts to a fee for holding their money, thus encouraging them to spend and invest. Indeed, some economists consider that to be an argument in favor of a cashless society, as it would make painfully deep negative interest rates workable because they could not be avoided through cash withdrawals.

# data[].attributes.attachment_link.title
What Is a Cashless Society and How Does It Work?

# data[].attributes.attachment_link.description
How people pay for things in a world with no physical money.

# data[].attributes.attachment_link.title
How a Cashless Society Can Affect the Unbanked

# data[].attributes.attachment_link.description
An individual is said to be unbanked when they don’t hold any accounts at a bank or credit union. Households are unbanked when none of their members are bank account holders. The reasons for being unbanked vary, including mistrust of banking institutions and high fees. Mobile banking, which has become popular for its convenience, has been recognized as having the potential to drive an increase in banking among the unbanked.

# data[].attributes.attachment_link.description
The future of money may be digital, but we must not underestimate the resilience and freedom that cash offers.

# data[].attributes.attachment_link.readable_text
As retailers and restaurants experiment with going cash-free, a new paper from the Federal Reserve's Cash Product Office (CPO) explores the benefits to businesses while also cautioning that the practice could alienate over a quarter of U.S. consumers.

The paper raises significant questions about financial inclusion in an evolving payments landscape. It also acknowledges that going cashless is attractive to businesses seeking to control costs.

Role of cash in financial inclusion

People without a bank account and those who supplement their bank accounts with alternative financial services like payday loans are most likely to rely on cash. People experiencing unemployment or underemployment, working to reduce debt, or trying to establish or rebuild credit, for example.

A 2017 FDIC survey estimates that 25.2% of U.S. households are unbanked or underbanked.

When brick-and-mortar businesses only cater to customers with bank accounts and access to credit, they potentially exclude a lot of people.

Several states and cities agree.

Where do businesses have to accept cash in the U.S.?

Federal statute only requires creditors to accept currency and coin as payment for "debts, public charges, taxes, and dues." Private businesses can choose to accept cash (or not) unless a state or local law says otherwise.

Massachusetts was the first state to require merchants to accept cash with the 1978 Discrimination Against Cash Buyers Amendment. New Jersey enacted a similar law in March 2019, requiring stores and restaurants to accept cash at all brick-and-mortar locations. At the city level, Philadelphia and San Francisco have followed suit and others, including New York City, are considering similar legislation.

San Francisco's legislation states, "The purpose of this [law] is to ensure that all City residents-including those who lack access to other forms of payment-are able to participate in the City's economic life by paying cash for goods and many services."

Businesses debate whether to go cashless

Going cashless can make a lot of sense for a business looking to offer faster transactions, reduce the likelihood of robbery, and eliminate costs associated with cash handling such as armored carrier transport.

On the other hand, as the CPO's paper explains, the "move away from cash can, even inadvertently, support financial exclusion of certain consumers."

Where there's no specific law in place, it might all come down to what the public wants. Sweetgreens and Shake Shack recently backtracked their cashless policies in response to customer feedback and public backlash.

Do consumers have a right to use cash? Who bears responsibility for financial inclusion? CPO Data and Policy Analysis Director Alex Bau says, "we encourage a discussion about the benefits and risks of cashless businesses so consumers and retailers can make thoughtful decisions about what they do at the register."

Visit Cash Me If You Can: The Impacts of Cashless Businesses on Retailers, Consumers, and Cash Use for a detailed analysis.

You may also like:

# data[].attributes.attachment_link.title
Impacts of Cashless Business on Financial Inclusion - San Francisco Fed

# data[].attributes.attachment_link.description
As retailers and restaurants experiment with going cash-free, a new paper from the Federal Reserve's Cash Product Office explores the benefits to businesses while also cautioning that the practice could alienate over a quarter of U.S. consumers.

# data[].attributes.attachment_link.readable_text
This is a selection of resources on China's rising cashless society available from the NLB catalogue or the Internet and is not meant to be an exhaustive list.

NLB print and digital resources
China's fintech explosion: Disruption, innovation, and survival
In rapidly developing China, fintech is taking off amid a backdrop of growing consumption and a large, tech-savvy millennial generation. China's Fintech Explosion explores the transformative potential of China's financial-technology industry, covering subsectors such as digital payment systems, peer-to-peer lending and crowdfunding, credit card issuance and internet banks, blockchain finance and virtual currencies, and online insurance.

Retrieved from OverDrive. ( myLibrary ID login is required to access this ebook)
Super-sticky WeChat and Chinese society
This ebook provides a balanced and nuanced study of how the WeChat platform interweaves into the fabric of Chinese social and cultural life. It keeps the wider global and national social media landscape in view and compares and contrasts WeChat with Weibo, QQ and other Western social media platforms, including some of their mobile payment systems and their usage trends in China.

You may also like
China takes steps to become first cashless society after Covid-19
In the aftermath of the Covid-19 pandemic, China has launched its digital currency, the digital Yuan or RMB, in its bid to become a cashless society using contactless payments, and is poised to become the first country in the world to do so.
China is moving toward a cashless society
China is a pioneer in cashless transactions, propelled by Alibaba's Alipay and Tencent's WeChat Pay. According to the article's forecast, around 60 percent of China's 1.3 billion population will have made a purchase via mobile payment by 2023. As the trend continues, China may soon become a cashless economy, where digital payment methods totally replace cash.
China wants its rural villages to go cashless by 2020
Beijing announced its aim to make mobile payments within easy reach of its rural regions by the end of 2020. Guidelines (in Chinese) to make online financial services more accessible to rural residents have been jointly published by five Chinese regulating bodies including the Central Bank and the Ministry of Finance.
The real fight for Chinese mobile payments isn't taking place in China
Beijing announced its aim to make mobile payments within easy reach of its rural regions by the end of 2020. Guidelines (in Chinese) to make online financial services more accessible to rural residents have been jointly published by five Chinese regulating bodies including the Central Bank and the Ministry of Finance.
Cashless China: Would you use your face to pay?
Facial recognition payments system is the next big thing in China's cashless payment trend, and using it is very convenient and easy for those who have already tried the system.
This is China: The cashless era is coming
In 2018, a record 277.4 trillion RMB had transacted via mobile payments and as of June 2019, there were 633 million online payment users in China. The leap from cash to mobile payments was accelerated by advanced technologies and a high mobile penetration rate in the country.
China's great leap to wallet-free living
In China, cash is rapidly becoming a thing of the past. In this video, see how Alipay and WeChat Pay have become the mainstream mode of payment transactions in the Chinese city of Shenzhen, where people generally do not use cash for their daily activities at all.
China blazes trail in facial recognition payment systems
No money? No cards? No phone? No problem! Just smile to pay for your purchases at this self-service supermarket at Tianjin, China. Facial recognition payment systems have been rolled out in over 100 Chinese cities by tech-giant Alibaba and are both convenient and safe. The system is designed to read nodal points in human faces which act as one's facial signature.
China: A digital payments revolution
Alibaba and Tencent have been the main drivers for digital payments via mobile apps in China, particularly with their successful tie-up with retail platforms. In 2017, 890 million unique mobile payment users made around $17 trillion transactions and over a third of consumer payments in China are now cashless.
Payment methods in China: How China became a mobile-first nation
In 2018, around 83 percent of all payments in China were done via mobile phones, and the recent pandemic appears to have boosted online and mobile payment transactions in May 2020. The article also includes tips on how a foreigner can use mobile payment methods to boost their businesses in China.
Digitizing the Chinese New Year
In 2014, a digital hongbao feature was introduced by Tencent, a Chinese multinational conglomerate, as an alternative to the traditional gifting of red packets filled with money by elders to young people during Chinese New Year. From 2014 to 2018, over 769 million people had used this application to send virtual red packets to families and friends during Chinese New Year.
The real fight for Chinese mobile payments isn't taking place in China
Before the end of 2017, Chinese shoppers will be able to use Baidu's digital app to make payments at PayPal's 17 million merchants worldwide, in a tie-up between the American payment company and the Chinese tech giant.
China sets up clearing house for online payment services like AliPay and Tenpay
China has set up a national clearing house for banks and online payment systems in order to route transactions starting from 30 June 2018. This move will help regulators track and monitor the capital flows from online transactions thereby creating a safer Internet payment environment for consumers.
Take a tour of a Hema Supermarket and experience "new retail"
This video introduces the Hema Supermarket in Shanghai, Alibaba's "new retail" concept that merges online and in-store shopping to provide a seamless and more efficient shopping experience for consumers. Shoppers only need to download a mobile app and use their mobile phones to do the shopping by scanning barcodes to get instant product information.

Source: Alibaba Group
Last updated on Oct 2020

# data[].attributes.attachment_link.description
This is a selection of resources on China's rising cashless society available from the NLB catalogue or the Internet and...

# data[].attributes.attachment_link.title
The effect of cashless payments on the internet and mobile banking

# data[].attributes.attachment_link.description
Some of the problems of cash transactions were the inconvenience of handling cash and the limited availability of banking services to facilitate cash withdrawals. The purpose of this paper is to examine the impact of cashless payments on the usage…

# data[].attributes.attachment_link.title
For ‘unbanked’ Californians, cash is still king in an increasingly cashless society

# data[].attributes.attachment_link.description
Unbanked Californians are being locked out of an increasingly cashless economy, but some cities and legislators are seeking a solution.

# data[].attributes.attachment_link.title
Cashless Economy – One Step of Digital India

# data[].attributes.attachment_link.description
Cashless economy is an economy where transaction can be done without physical cash as a means of exchange of transaction but rather with the use of credit or debit card payment for goods and services.

# data[].attributes.attachment_link.title
Charting the Course to a Cashless Society

# data[].attributes.attachment_link.description
Global phenomena such as climate change and the pandemic have compounded the sense of urgency for digital transformation across public and private sectors. Digital finance and financial inclusion are no longer important but essential for building economic resilience, reducing crime, and promoting Sustainable Development Goals (SDGs).

# data[].attributes.attachment_link.title
Central Bank Digital Currency (CBDC) - Virtual Handbook

# data[].attributes.attachment_link.description
The IMF’s Central Bank Digital Currency (CBDC) Virtual Handbook is a reference guide for policymakers and experts at central banks and ministries of finance. It also serves as the basis for the IMF’s engagement with country authorities and other stakeholders.

# data[].attributes.attachment_link.title
DPS 2.0: on the road to a cashless society

# data[].attributes.attachment_link.description
While cash will eventually become a thing of the past, marketing researchers have given little attention to the rise of cashless markets and the obstacles and opportunities they present. In fact, research that addresses the strategic approach to…

# data[].attributes.attachment_link.readable_text
Recepción: 21 Enero 2019

Aprobación: 07 Mayo 2019

Abstract: For every economy, money is a critical medium of exchange. Money emerges as an intermediary and store of values to improve a barter system. Cashless finance endures utilization generally digital money or plastic without money or currency in papery appearance. The moderate of regulating economic activity endure possibly the massive motivator toward advance the digital economy. This research scrutinizes the progress of embrace cashless payment on economic development and growth of Malaysia. Due to rapid growth in the digital economy, electronic money transactions in Malaysia have increased significantly from in the last fifteen years. There is a positive trend in electronic money usage. The increases caused by the awareness of the society and the government that encourages in using electronic money. At the same time, the velocity of paper money in Malaysia tends to decrease during the same period. While there is a negative trend in the velocity of money, the money supply (M1) has increased in order to maintain an economic growth of the country.

Keywords: impact of a cashless society, economic growth, Malaysia.

Resumen: Esta investigación examina el progreso de la adopción de pagos sin efectivo en el desarrollo económico y el crecimiento de Malasia. Debido al rápido crecimiento de la economía digital, las transacciones de dinero electrónico en Malasia han aumen- tado significativamente en los últimos quince años. Hay una tendencia positiva en el uso del dinero electrónico. Los aumen- tos causados por la conciencia de la sociedad y el gobierno que fomenta el uso del dinero electrónico. Al mismo tiempo, la velocidad del papel moneda en Malasia tiende a disminuir durante el mismo período. Si bien hay una tendencia negativa en la velocidad del dinero, la oferta de dinero (M1) ha aumentado para mantener el crecimiento económico del país.

Palabras clave: impacto de una sociedad sin dinero en efectivo, crecimiento económico, Malasia.

INTRODUCTION

A cashless payment will definitely advance smart nation spot community stop the use concerning cash as a mechanism of interchange for services and goods by authorizing non-digital payment means cheques or digital transfer payments (Tee and Ong. 2016). The direction concerning the utilization of online transactions inaugurates in everyday life during 1990, at the same time digital investment enhances commercial. By the 2010 electronic payment mechanism have been poplars and extensive in multiple states, counting mediator equally digital wallet system, PayPal employs by enterprises cognate Apple, contactless cash aside digital card or smartphone, online banking, and digital statement. The digital payments encounter guidance us facing the cashless community efficient capacity. Most offed analysis (Premchand & Choudhry. 2015), indicate thieving cashless payments act emerging quickly beyond the world, the hard cash residue adaptable. Adapting digital payment system an economy ushers toward the cashless community. A cashless activity is not only assuring payment since customers will also, but surge revenue also enhances operational coherence for business. Yet, against every these advantage integrated along e-payment, requisite ICT perceive-how between customers and fear about security violation prevail the most agitate of experts, individuals, and organizations in the lead of information system (Kamaruzaman, Handrich & Sullivan. 2010). An adaption of digital payment system is ample slowing in public sector and government institution (Hussein, Mohamed, Rahman Ahlan & Mahmud. 2011).

In 2003, ASEAN leaders have determined to form an ASEAN Economic Community (AEC) by 2020 in structure to transform ASEAN into a secure, thriving, extremely competitive region with proper economic growth, decrease poverty and socioeconomic imbalance. The target date for the AEC has been subsequently brought forward by 2015 due to the ASEAN perceived loss of competitiveness to India and China. The formation of AEC has brought ASEAN countries into a serious concern on economic and financial integration. As the AEC begin, ASEAN member countries are having a significant demand for an integrated payment system. Under the advance system, individual user beyond ASEAN is expert to forge financial payments through electronic money, ATMs, or credit cards without employ a notable volume of money or time execution so. It also requires the development of a seamless payment system within the region, one of the most stimulating functions will be encouraging the practice of better non-cash payment mechanism (cashless transactions), to benefit an accepted method of payment. Cashless transactions comprise payment transactions form with credit cards, payments with debit cards, direct debits, checks, and direct credit transfers as effectively as payments with prepaid and e-money and stored value cards. The growth of electronic money in ASEAN countries will be very fast and significant. An increase in the use of electronic money would lead to an increase in the demand for money.

BATTLE OF THE BRANDS ON CASHLESS PAYMENT IN MALAYSIA

While cashless payment continues growth globally, Malaysia is once gearing up apropos the similar management along Alipay pervasive the retail market more along various partnerships. This association beside reality that its immense competitor, WeChat Pay, can shortly rise into the market as effectively, along with its authorize application ongoing. It is not staggering that WeChat continues observing the Malaysian retail. Back in 2015, WeChat publicizes that Malaysia act vital retail for the app as it chooses transforms community interaction intra policy for a trademark interreact among consumers. Concerning a year following in July 2016, Global Web Index (GWI) that inspect digital consumer behaviors and direction further divulge such utilization of WeChat arises 60% in Malaysia since 2015. In July, director of WeChat Pay's global operation Grace Yin told Reuters that if the green light is derived, Malaysia desire benefit early retails facing cuddle the policy covering continent Hong Kong and China. Customers in Malaysia intention further endure efficient to connect their regional bank detail through WeChat Pay including capitalizing for services and goods in regional cash, effective ringgit. Striking subsist acceptance about WeChat app act predicting toward cover the method considering Chinese digital technology massive to invading the retail industry. Duration yet modern rapid levels, numerous latest retailing industry appear through act feverish concerning effective future about cashless payment drive through Alipay including WeChat Pay. Although various commerce competitor (A+M) criticize toward embracing the modern development, any conical ended various scenarios such necessity facing prevail ironed out being a sleek evolution toward a comprehensive-flagged cashless payment community.

Sean Sim, CEO of McCann Erickson Malaysia, state duration it endures key that retailers or brands keep being formulated considering cashless payment ineffective future, a trade that manages massive money activity desire act effective strained further. Sim who has been the hinge in China since approximately a decade as effective executive creative director of Ogilvy and Mather Shanghai endure an eager customer of the Alipay together with WeChat app. Be that as it may, littler retailers or road merchants will undoubtedly confront greater difficulties in grasping the new cashless installment biological community. These are the organizations that require snappy access to everyday money close by, particularly on the off chance that they need to pay their providers who just need money. On the other hand, Sim stated, he doesn't predict specific brands or retailers. The general population is moderate in embracing cashless installments at the same time cautious, notwithstanding size, to endure quite a bit of a business decay.

Chief of Sunway Malls and Theme Parks, HC Chan concurred along Sim, including such test intention act certainty concerning the framework, that prevails existent should be tended. Customers must remain persuaded of the security of the framework ahead grasping this modern type of volume medium, he included. CAPEX venture is likewise another territory of thought. "On the off chance that the money-saving advantage examination focuses towards better ROI, at that point yes cash will be contributed," Chan said. In the meantime, Chan said traders' obtaining is likewise a costly issue, as expenses can inflatable to achieve a minimum amount for cashless installments to be broadly acknowledged. From a retailer's perspective, the advantages about cashless installment are self-evident, as its intention provide a further anchored framework along minor exchange rate. This implies little instances of burglary between representatives or clerks in the stores and a lower chance of losing money while dealing with it.

ALIPAY'S GETTING AGGRESSIVE IN MALAYSIA

In the interim, Alipay likewise as of late entered Malaysia by means of different tie-ups with retailers and banks. It previously teamed up with Maybank and CIMB in March this year by means of its administrator Ant Financial Services Group. The tie-up empowers Alipay portable wallet in Malaysia and furthermore enables Chinese guests to pay for their exchanges in yuan without worry concerning trade rates. Brands that were spearheading this organization with CIMB to acknowledge Alipay versatile wallet installments in Malaysia incorporate Genting Malaysia, DiGi Telecommunications, YTL Corp Bhd and FamilyMart comfort store chain. In May 7-Eleven Malaysia additionally turned into the main retailer in the nation to acknowledge the Alipay portable wallet installment, with 94% of its 2,100 stores across the country utilizing the new installment framework. The comfort store chain is possessed by big shot Tan Sri Vincent Tan, organizer of Berjaya Corp. Installment arrangements supplier GHL Systems likewise said in June that it is empowering in excess of 100 dealers in Malaysia to acknowledge Alipay as an installment alternative. This will permit the 500 outlets possessed by these traders, for example, KK Super Mart and myNEWS. com.

Alipay has gone another progression forward in July with its most recent association with CIMB Bank-claimed Touch 'n Go. This most recent arrangement serves to additionally push a cashless installment big for the not so distant future, particularly with an expected ten of millions Touch 'n Go cards issued to clients. Jack Ma, who established Alibaba and claims Alipay, has been Malaysia's advanced economy consultant since before the end of last year. Nearby advanced specialists and tech businesspeople respected the news, referring to the arrangement will probably goad the development of our computerized economy.

ADVANTAGES OF A CASHLESS ECONOMY

The simplicity of directing money related exchanges is most likely the greatest helper to go advanced. Moneyless installments have little focal points, which ensue never obtainable through the conventional mechanism of installment, some of which are; great exchange productivity, respectability, protection, similarity, adequacy, accommodation, portability, hazard, low secrecy monetary (J. Keck. 2011). There are numerous advantages of a cashless talked about as under:

The simplicity about Conducting Financial Transactions: Early about all, there endure a simplicity about leading money related exchanges, which is presumably the greatest sparks to go computerized. In the cashless installment, there is no compelling reason to convey packet about trade either constant emerges high lines in the bank. Its desire endures anything but difficult via conveying cash along with you amid voyaging. It desires to act particularly valuable modern the event of therapeutic crises. You can pay effortlessly amid working hours moreover.

Diminish Risk: The approach will help battle against debasement/illegal tax avoidance and decrease the danger of conveying money, lessened cost, defilement, and tax evasion.

Decreased Tax Avoidance: Thirdly, the cashless economy obtains the advantage about diminished expense evasion. The ongoing remission about administration charge over card exchanges likewise advances computerized exchanges. This retains endure trailed through a progression about the intersection and complimentary gifts. Individuals desire to receive a rebate on advanced buy that desire section their expense. Compute via these striking moneys final action, also rebates furnish through versatile wallet related Paytm, and additionally, effective benefit focuses and devotion reward against the actual store and credit cards, also it keeps guidance enhance your income hardly.

Diminished Tax: Taxation beside the minor accessibility concerning indurate money situated at mansion including extra in banks, the insignificant extent of concealing salary and dodging tax assessment also during act extra citizen it, at last, prompts a minor percentage about tax collection considering entire nation (P. Sparrow. 2016).

Straightforwardness: It isn't only the least demanding approach to execute yet additionally realizes much more straightforwardness in the monetary framework, which controls the age of dark cash.

Decrease costs of land: Further, it will lessen land costs as a result of the check on dark cash as the greater part of dark cash is put resources into land costs which swells the costs or land markets.

Cleanliness: It will likewise help in enhancing cleanliness on location disposing of the bacterial advance over dealing with coins and notes.

Lessened Fear of Theft: It desire bring down hazard, it acts anything but difficult facing hinder a charge card either portable wallet casually, yet it prevails difficult facing recover your money.

Decreased Red Tapes and Bureaucracy: Including cashless exchanges over digital medium effective wire exchanges endure followed and individuals act responsibly that thusly diminishes defilement and enhance benefit time.

Minor Interest Rates: Extra cash in the bank intention niggard further dissemination about cash in a striking economy, prompting more noteworthy liquidity also direct, in the end, niggard minor loan costs (P. Sparrow. 2016).

Productivity: Cash gathering made straightforward as time spent on gathering; checking and arranging money is dispensed with it will prompt effectiveness rise. Existent desire act more noteworthy proficiency current interest programs as cash prevail transfer specifically toward effective record about beneficiaries. Promote it lessens exchange/ preparing charges, builds handling/exchange time, offers different installment alternatives and gives quick warning on all exchanges for clients.

Track on Spending: If entire exchanges prevail over the document, it desires to act simply considering individuals to monitoring them dispense.

Advantages toward Banks: It acts likewise advantageous toward effective banks also dealers; there endure huge client inclusion, universal items, and administrations, advancement and marking, the increment in consumer loyalty and customized association with clients and less demanding documentation and exchange following (H. Moses-Ashike. 2011).

CASHLESS TRANSACTION IN INDIA

Deepika Kumari (2016) in her investigations of Cashless Transaction: Methods, Applications, and Challenges reasoned that the as the demonetization connected by administration of India. Government attempting to mindful its kin for cashless exchange by different sorts of promotion technique yet at the same time a substantial number of individuals are sitting tight for the presentation of cashless exchange. This paper is an investigation of cashless exchange its distinctive techniques, points of interest and difficulties. This paper will comprehend the fundamental of the cashless exchange.

Kumar (2015) directed an investigation an examination of development example of cashless exchange framework reasoned that the cashless exchange framework is achieving its development step by step when the market progress toward becoming globalized and the development of managing an account part an ever-increasing number of the general population moves from money to cashless framework. The cashless framework isn't just prerequisite yet, in addition, a necessity of current community. Full online trade structurally depends simultaneous the cashless transaction model. The cashless progress impartial further protected than striking money transaction, yet, prevail lacking mindless also not a burden about the transfer and disrupt concerning tear and wear related paper money. It further assists modern information about the entire transaction is complete. Included method, prevail lacking unreliability declare such future transaction model prevail a cashless transaction model (Mahajan & Singla, 2017).

Saini (2015) in his investigations of Demonetization - Metamorphosis for Cashless India, reason that cashless exchange will prompt e-exchanges. There has been an extreme enhancement in electronic exchanges which may help cybercrime, so we make individuals mindful of approaches to keep credit, charge cards safe and to prepare them to instruct the measures to keep our exchanges bother free. We require exceptionally prepared digital police, legal labs with cutting-edge proof social event instruments, open investigators who comprehend innovation and digital courts to rebuff digital hoodlums. Expectation India will be in the line of created nations in the days to come (Kshetri, 2016).

Roy and Sinha (2014). expressed that E-instalment framework in India, has demonstrated huge growth, still, at the same time, there retain a parcel facing act complete via expanding its utilization. Still, 90% about effective exchanges prevail money situated. Innovation Acceptance Model utilized with the effective end goal about the research. They discovered modernization, impetus, client comfort, also lawful structure endure the four elements that add via fortify the E-instalment framework (Kumar, 2015).

Mahajan and Singla (2017) discovered that little specialist co-ops like vegetable merchants, rickshaw pullers, roadside restaurants, neighborhood Kirana stores, and so on who in spite of being pervasive in the Indian scene are quickly losing business to their partners in the sorted-out areas like the taxi aggregators and web-based business specialist co-ops as the previous are neither carefully empowered nor carefully monetarily included (Sparrow, 2011).

CASHLESS TRANSACTION IN CHINA

In China, the swift shift from traditional payment (cash and card) to mobile payment is due to the popularisation of smartphones in the last decade. 95% of internet users in the country now go online through mobile equipment. At present, most brick-and-mortar stores like supermarkets, restaurants and cloth shops, as well as online-to-offline (O2O) services such as taxi hailing, food delivering and bike sharing, accept mobile payment options including Alipay and its main rivals including WeChat Pay which is operated by another Internet giant.

According to the information delivered, third-party/non-bank payment providers diversion a massive function in the Chinese payment market. The dominant competitor is Alipay, a payment service contributor that is a portion of the Alibaba conglomerate and Tenpay, a payment service provider below the Tencent holding that provides the mobile payment infusion "WeChat Pay". The Alipay wallet empowers users to create face-to-face purchases and e-commerce and is scamper by Alipay.com Co., Ltd. the dominant third-party payment company in China. In 2004, Alipay was inaugurated by the Alibaba Group in structure to yield internet-position escrow payment services for the online shopping website of Alibaba. In 2009, the mobile application of Alipay was originated. By 2016, Alipay has organized hitherto 175 million transactions per day, of which a generality of 60% was accomplished via a mobile phone. In 2014, Alipay was restructured as Ant Financial Services Group and isolate from Alibaba to meet with the governmental requirement. Yet, there is quite a profit-apportion consent linking Alibaba and Ant Financial (Premchand & Choudhry, 2015).

WeChat Pay is the coherent digital wallet contain inside the WeChat application, a community policy moves by Tencent that in 2016 possess a user to assess of 806 million. WeChat merges functionalities familiar from WhatsApp and Facebook. For example, WeChat empowers users to talk with contacts and possess a trademark called "Moments" to measure videos and pictures, alike to Facebook's "timeline." In 2005, Tencent inaugurates a digital payment app called Tenpay, initiated only nine months following the detach of Alipay. The Tenpay app permitted users to pay for Tencent's services and products and is further interoperable with various e-commerce policy, with the deviation of Alibaba-retain Tmall and Taobao e-commerce policy, however, in 2013, Tencent coherent the Tenpay app functionality into WeChat, in the backing familiar as "WeChat Pay" (Roy & Sin, 2014). With the WeChat Pay wallet, customers can capitalize in diverse position, both distant and at the POS.

Both the WeChat Pay wallet and the Alipay yield divergent choice for capitalizing. For example, with Alipay customers can determine inside the secure activity whether the transaction volume will be subtracted from the Alipay account on a prepaid premise, a connect credit or debit card or from an exposition that provides an attentiveness wage free merit for 41 days. While most customers chain their third-party transaction with their payment card and/ or a bank account, it is further viable to utilize it without a bank account as for sample Alipay accounts can further be topped up via a prepaid phone card. Yet, WeChat and Alipay are not interoperable and it is not manageable to forward money straight linking accounts at the two divergent providers.

CASHLESS TRANSACTION IN MALAYSIA

WeChat Pay will be implemented in 2018, seen as the biggest rival to Alipay which was introduced in Malaysia in June 2017. The cashless system from China (Alipay, for instance) has successfully collaborated with large local banks such as PBB, MBB, CIMB, and Genting. While the existing Alipay is currently accessible for tourists visiting from China only, WeChat Pay is bound to become a big hit in terms of digital payment the services will be coherent into the WeChat messaging app, which has a large existing user base of 20 million users in Malaysia. In terms of influence, WeChat Pay is viewed to be gaining attention and influence especially when Tencent has recently surpassed Facebook in terms of net worth immediately after becoming the first Asian technology firm to hit USD 500 billion net worth. This shows that Malaysia is not far from becoming a cashless society under the influence of China.

Besides that, the government is establishing a digital payment system like those of Alipay and WeChat Pay in the effort to strengthen our local influence on a cashless system. Sarawak, for instance, has contributed to the local cashless movement by developing its own payment system known as Sarawak Pay, a digitized system which allows Sarawakians to pay for all local government services. According to the local government, Sarawak Pay will take gradual advancement to be integrated with F&B outlets under the Sarawak Economic Development Department as well as enabling this e-wallet system to be linked with other neighboring countries such as Indonesia, Thailand, and China.

In 2010, the volume of e-money transactions in Malaysia has reached significant growth from 699 million transactions and increasing to 1.1 billion transactions in 2014. According to Figure 1, that shows e-money transactions in Malaysia are increasing steadily from 2010 to 2014. The increasing number of e-money transactions in Malaysia tends to be stable, which are 15% from 2010 to 2011 and 2011 to 2012, 14% from 2012 to 2013, and 12% from 2013 to 2014. The increases are partly due to awareness of the society and the government encourages in using electronic money.

The chart below shows the growth of GDP, money supply (M1), and the velocity of money during 2010-2014. The growth of the velocity of money has been influenced by the growth of GDP and money supply (M1). According to Figure 2, it shows that the velocity of money continues to fluctuate year by year and tend to be on the decline a trend. At the end of 2014, the velocity of money in Malaysia has reached the minimum level even though there is an increase.

DISCUSSION

Starting from 1 st January 2019, all banks in Malaysia will report on every transaction worth RM 25000 and more to the control bank, Bank Negara Malaysia. This new measure is taken in an effort to control any large amount of money movement taking a similarity financial in 1997.

In this paper, a new IOT note will be proposed. Referring to Figure 1, an electronic money has followed on average a constant growth in the last decade. However, the velocity of paper money has gone down at the same time as depicted by the green graph in Figure 2. An electronic money has been created by financial provides without any attachment to any paper money. Bank Negara Malaysia will start losing on the moment of electronic money in a cashless transaction. In this paper, an IOT note for multiple session will attach itself to real paper money note as shown in Figure 3 [14]. The IOT note movement across multiple transactions can be tracked down by control authority as each IOT note will be beads on the paper money kept by the banks as shown in Figure 4. At the same time, the velocity of the paper's money can be traced from all the transactions. It is going through. The electronic money has been in the current form an issued by the banks or financial provider with minimum controls from the central bank. In this IOT system, the supply of money (M1) and the velocity of money will be under control by the Bank Negara Malaysia.

CONCLUSION

A cashless economy characterizes an economic position how financial activity keen regulated along cash in the appearance concerning actual coins or banknotes, yet relatively via the transfer of digital information linking the transaction group. The paper discovers such adaption of the cashless economy practice can increase effective development about financial balance in the country. It arises such greatly boost information the community apprehensive of the cashless economy also such significant measures of the community move even pending the foreword of the cashless economy.

The cashless economy drive desire swing crucial sake facing prosper economy; thus, the cashless structure desire act beneficent in the oppose facing money laundering and corruption. One most important input about cashless economy prevails such presumed facing decrease affecting liability related to bringing cash. Considering greater activity intention directly act resolve electronically, community intention retains little necessity facing pass over along cash and thus, armed robbery, theft, and loss of cash will drastically decrease. In this paper, an IOT note for multiple session has been proposed which is attached to the real paper money. Indirectly, the proposed will provide a control mechanism to the central bank on the velocity and growth of electronic money in a cashless society.

# data[].attributes.attachment_link.title
Impact of cashless society on the economic growth in Malaysia

# data[].attributes.attachment_link.description
Esta investigación examina el progreso de la adopción de pagos sin efectivo en el desarrollo económico y el crecimiento de Malasia. Debido al rápido crecimie...

# data[].attributes.attachment_link.title
Cash Me If You Can: The Impacts of Cashless Businesses on Retailers, Consumers, and Cash Use - San Francisco Fed

# data[].attributes.attachment_link.description
Cashless coffee shops, restaurants, and convenience stores have popped up across the country. It is not illegal to refuse cash as a form of payment in most states and cities in the U.S., and going cashless helps these businesses eliminate the costs of handling and transporting cash. But do these savings come at the cost of financial inclusion? This paper explores the impacts of businesses going cashless.

# data[].attributes.attachment_link.provider_name
The United Food & Commercial Workers International Union

# data[].attributes.attachment_link.title
Who gets left behind by a cashless society? - The United Food & Commercial Workers International Union

# data[].attributes.attachment_link.description
Many companies are making big promises about cashless payments: You’ll soon be able to buy whatever you need with just the tap of a button, scan of your phone, or swipe of a card. But in our collective hurry to spend more money with greater speed and ease, we’re leaving millions of Americans behind and millions more at risk – and benefiting only a few at the top.

# data[].attributes.body
https://www.finnpartners.com/uk/news-insights/how-technology-is-driving-a-cashless-society/

# data[].attributes.attachment_link.readable_text
April 7, 2015

For almost 20 years banks have been attempting to make it easier for us to manage our money. We receive our salaries and paid our bills by transferring money digitally without actually handling any cash.

Despite the easy means of making payments, society still values cash in its physical form. Yet with new technologies such as contactless payment, digital wallets and mobile payments, consumers' are increasingly trusting technology to facilitate the role of handling cash payments for day to day goods. The advancement of payment technology has rapidly changed and, as a result, we are changing how we interact with money.

Is a Cashless Society Possible?

Sweden is leading the way, with the aim of becoming a completely cash-free economy by 2020. In emerging markets, such as Somalia and Kenya, mobile phones have leapfrogged the traditional banking system with consumers making, on average, 34 mobile payments a month. In Belgium and France only 7% of transactions take place in cash.

In the UK in 2014 the use of cash on London Buses was banned. Additionally, over the last 5 years, there has been a 14% decrease in the use of cash in retail spending.

The convenience of contactless payment, first issued by Barclays Card in 2008 and the increase of mobile payments have helped facilitate this shift.

The Role of Mobile

Google understands and acknowledges the growing importance of mobile phones in our daily lives. Mobile enabled payments not only allow retailers and merchants to service more people more quickly, it has the added benefit of effectively linking their loyalty cards to the customer's digital wallet.

Mobiles are always on; they are able to provide rich information on location, search habits and purchasing behaviour. The pain of paying is potentially reduced, due to mobiles, making it easier for consumers to part with their hard earned money.

The latest stats from IMRG show that 40% of online sales between Nov '14 and Jan '15 were made via mobile.

With this in mind retailers should consider the robust mobile wallet strategy, which leverages the rich multi-functional information that a mobile phone incorportates, to tailor their offering to meet the customers' needs, delivering a truly consumer centric experience while at the same time reducing their own costs.

Too Many Options

There are many different mobile payment solutions with banks, payment providers and even mobile operators offering their version of the mobile solution. Introduced by Apple, Apple Pay allows you to pay for goods using your mobile phone. LoopPay (acquired by Samsung) is accepted more widely as it uses a compatible copper loop technology that mimics the coding of our credit cards magnetic strip.

Apple and Samsung are not alone in developing innovative payments technology. There have been some recent acquisitions, as larger companies purchasing smart tech companies in an aim to drive their mobile payment capabilities.

Visa acquired TrialPay

PayPal acquired Paydiant

Google acquired Softcard assets

Lifelock acquired Lemon

Security of Online Payments

The question must be asked, how safe are mobile payments? At some stage we have all had the experience of losing our mobile phones. Accenture conducted a recent survey that revealed that although more people intend to use mobile payments, 57% were concerned with the security of the transaction.

New market entries, such as tech innovators Sthaler have developed Fingopay, that uses a strong biometric finger vein technology to ensure fast easy and secure payment. This form of payment registers your cards to your finger, essentially enabling you to authorise payment for goods with your finger. The interesting thing with biometric security is that it leaves no trace, dramatically reducing the opportunity for fraud.

In a survey of over 2,000 UK adults commissioned by Visa Europe, 76% said they would feel comfortable making a payment using biometric security. Additionally, 69% believed this form of payment would make their lives faster and easier, while 70% predicted that this will become the primary form of identification by 2020.

The Future

As technology advances, consumers seem to becoming increasingly comfortable in adopting digital payment solutions leading towards an increasingly cashless society. Although security is a potential barrier to adoption, it's just a matter of time until a seamless secure option is established. Retailers need to ensure they have their digital strategies in place to add value in the appropriate way when consumers adopt this technology to pay for goods.

Contact Us

Need help from a creative digital marketing agency to set up a mobile friendly strategy for your business? For more information on how to do that, feel free to drop us a line.

# data[].attributes.attachment_link.title
How technology is driving a cashless society

# data[].attributes.attachment_link.description
For almost 20 years banks have been attempting to make it easier for us to manage our money. We receive our salaries and paid our bills by transferring money digitally without actually handling any cash. Despite the easy means of making payments, society still values cash in its physical form.

# data[].attributes.attachment_link.title
Would a Cashless Society Be a Better Society? | J.P. Morgan

# data[].attributes.attachment_link.description
As physical cash use rapidly declines, what would the implications of a cashless society be? We asked two experts to weigh in on either side of the debate.

# data[].attributes.body
https://www.forgov.qld.gov.au/information-technology/digital-investment/queensland-government-digital-futures-and-foresight/signals/the-future-is-cashless

# data[].attributes.attachment_link.title
The effect of cashless payments on the internet and mobile banking

# data[].attributes.attachment_link.description
Some of the problems of cash transactions were the inconvenience of handling cash and the limited availability of banking services to facilitate cash withdrawals. The purpose of this paper is to examine the impact of cashless payments on the usage…

# data[].attributes.attachment_link.title
The Emerging Technologies of Digital Payments and Associated Challenges: A Systematic Literature Review

# data[].attributes.attachment_link.description
The interplay between finance and technology with the use of the internet triggered the emergence of digital payment technologies. Such technological innovation in the payment industry is the foundation for financial inclusion. However, despite the continuous progress and potential of moving the payment landscape towards digital payments and connecting the population to the ubiquitous digital environment, some critical issues need to be addressed to achieve a more harmonious inclusive and sustainable cashless society. The study aims to provide a comprehensive literature review on the emerging digital payment technologies and associated challenges. By systematically reviewing existing empirical studies, this study puts forward the state-of-the-art classification of digital payment technologies and presents four categories of digital payment technologies: card payment, e-payment,mobile payment and cryptocurrencies. Subsequently, the paper presents the key challenges in digital payment technologies categorized into broad themes: social, economic, technical, awareness and legal. The classification and categorization of payment technologies and associated challenges can be useful to both researchers and practitioners to understand, elucidate and develop a coherent digital payment strategy.

# data[].attributes.attachment_link.title
The benefits, dangers and impacts of a cashless society

# data[].attributes.attachment_link.description
As cash use dwindles more every year and Britain moves towards a cashless society, experts explain the pitfalls – and how you can get help.

# data[].attributes.attachment_link.title
Cashless Payments Impact to Economic Growth Evidence in G20 Countries and Vietnam—Vietnamese Government with a Policy to Support Cashless Payments

# data[].attributes.attachment_link.description
Discover the impact of cashless payments on economic growth in G20 countries and Vietnam. This study reveals a positive relationship, even after accounting for endogeneity and omitted variables. Gain valuable policy recommendations for Vietnam’s cashless payment implementation.

# data[].attributes.body
https://www.weforum.org/stories/2020/01/benefits-cashless-society-mobile-payments/

# data[].attributes.attachment_link.description
Reducing transaction costs, closing the financial inclusion gap, and fighting corruption are just a few.

# data[].attributes.attachment_link.title
The rise of e-commerce and the cashless society | Think Tank | European Parliament

# data[].attributes.attachment_link.description
The rise of e-commerce and the cashless society

# data[].attributes.attachment_link.description
Recent research undertaken by the Mint Directors Conference and member mints has confirmed that Covid-19 has accelerated the use of digital payments - and that the move to contactless transactions has thrown the spotlight on inequalities.

# data[].attributes.attachment_link.title
For ‘unbanked’ Californians, cash is still king in an increasingly cashless society

# data[].attributes.attachment_link.description
Unbanked Californians are being locked out of an increasingly cashless economy, but some cities and legislators are seeking a solution.

# data[].attributes.attachment_link.title
Institute for Culture and Society | Cashless Payment is Booming, Thanks to Coronavirus. So is Financial Surveillance

# data[].attributes.attachment_link.description
Cashless Payment is Booming, Thanks to Coronavirus. So is Financial Surveillance

# data[].attributes.attachment_link.title
Navigating the Transition: Impacts, Challenges and Future Prospects of a Cashless Society | OxJournal

# data[].attributes.attachment_link.description
The global shift towards a cashless society represents a significant transformation in the way economies operate, driven by advancements in digital technology and the increasing preference for electronic transactions. This paper explores the implications, challenges, and future prospects of transitioning to a cashless society, by drawing on case studies from various countries at different stages of this transition. The study examines the potential benefits of a cashless society, including increased financial inclusion, reduced transaction costs, and enhanced transparency. However, we also address critical challenges, such as digital security risks, the advancements of the technological industry, and the persistence of cash in certain cultures and economies. Through a comprehensive analysis of these factors, the paper provides insights into the socioeconomic impacts of a cashless transition and offers a clear understanding of what lies ahead for the many countries embarking on this evolutionary change. While doing this, we will also highlight that although the move towards a digital economy holds significant promise, it requires careful planning, robust infrastructure, and adaptive strategies to eliminate risks and ensure that this journey is smooth and successful.

# data[].attributes.attachment_link.provider_name
Financial and Business News | Finance Magnates

# data[].attributes.attachment_link.title
Cashless Societies and Income Inequality: Examining the Social Impact of Payments

# data[].attributes.attachment_link.description
In the era of transitioning towards cashless societies, the relationship between payment methods and income inequality is a pressing concern.

# data[].attributes.attachment_link.description
The use of bank notes in Canada for payments has declined consistently for some time, and similar trends are evident in other countries. This has led some observers to predict a cashless society in the future.

# data[].attributes.attachment_link.title
Towards the Advancement of Cashless Transaction A Security Analysis of Electronic Payment Systems

# data[].attributes.attachment_link.description
Discover the vulnerabilities of cashless transactions and explore methodologies to measure and enhance the security of FinTech applications in this comprehensive analysis of cybersecurity issues in Electronic Transaction Systems.

# data[].attributes.attachment_link.readable_text
In recent years, there has been a growing trend toward using electronic payments rather than physical cash. This trend to a cashless society is likely to be accelerated by the Coronavirus which gives an impetus to avoiding unnecessary physical transactions. There are several advantages of a cashless society, such as a lower risk of violent crime, lower transaction costs and fewer issues of tax evasion. However, there are also concerns that a move to a cashless society could cause privacy issues and problems for those on low-incomes and with bad credit histories.

Advantages of a cashless society

Reduced risk of crime. Cash tills have often been the source of violent crime. It puts employers of banks and shops at risk from hold-ups. If cash is removed from business premises, this risk is substantially lowered. It also means a small business does not have to worry about employing security guards. Currently, a shop may need to employ a specialist guard to carry cash in a secure format. If cash is replaced, this is a potential cost saving for the business and the consumer.

Less tax evasion. A significant problem for governments is the issue of tax evasion. Self-employed workers such as builders can seek to be paid in cash and therefore declare less income than they actually earnt. This leads to a loss of income tax revenue for the government. It is estimated that the UK government lost £8bn in tax revenue due to 'cash in hand payments' (if this tax gap was closed it would be equivalent to 2% on the basic rate of income tax) A cashless society would make it easier for government to prevent tax evasion.

Harder for organised crime. Organised crime rely on cash transactions as it enables them to avoid government security. If shops stopped accepting cash, it would be a problem for criminals as they would either have to declare cash (BTW: Al Capone was sent to jail for tax evasion) or find some other outlet. A cashless society would make crime less profitable.

Hygiene and virus transmission. Since the spread of COVID-19, many shops have either banned cash payments or strongly encouraged e-payment. It is suggested that the virus can live on paper money and coins for up to two days and is a source of possible virus transmission. Paying by card reduces the risk of transmission through this method. I would not have thought of this point before 2020, but it could be relevant for quite a few years.

Quicker transactions. Paying for an item with cash taxes time and makes the queue longer. For time-sensitive business, this is a major issue. For example, if everyone paid for a bus ticket with cash and required the driver to count change, the journey time would increase and there would be more traffic congestion. Everybody on the bus would waste time. This becomes a major financial cost, and it is no surprise that many travel companies are refusing to accept cash payments. There is a similar issue for other business like coffee takeaways where speed is important - when people pay cash, the transaction becomes slower.

Reduces spare change. A consumer rarely has exact change, and so you end up with small coins which are difficult to spend. In the US, the situation is worse because the price you see advertised doesn't include sales tax. The final price will always be an odd number like $4.84 for a coffee. The 16 cents change then often ends up in drawers and is a welfare loss. The time cost of spending pennies is higher than the financial value.

Lower transaction costs for business. In some respects, business who accept only cards will have lower transaction costs. There is less labour time in counting cash and sending money to the bank. It also avoids any inaccuracy related to counting or dealing with potentially forged notes. (e.g. many shops don't accept large denominations).
Costs of cash infrastructure
At the moment, the UK cash infrastructure costs around £5 billion a year to run (PDF). It is paid for mostly by commercial banks (who pass costs on to consumers).

Problems of a cashless society

Difficult for those without bank account. In 2015, the Financial Inclusion Commission estimated nearly two million adults do not have a bank account in the UK. In the US in 2017, it is 14.7 million adults (6.5%) ( 2017) If shops only accept cashless payments, it is difficult for those without bank cards to pay. Many low-income households rely heavily on cash and can be left behind if some and services are not available via cash. Some people with very poor credit history may be prevented from getting a bank card. The great thing about cash is that it doesn't discriminate on things like credit history. A report into a cashless society found 17% of adults or 8 million would struggle in a cashless society. ( Access to cash - PDF)

Privacy. China is leading the way with a move towards a cashless society. In 2020, over 50% of consumers have made a transaction with mobile payment. The government is now pioneering a government digital currency. The motive is for the government to be able to access all data on households, pressure groups, business and organisations. It gives the government tremendous power over its citizens and raises fears of techno-dystopia. A political dictatorship with the ability to monitor any economic activity will have more powers to clamp down on dissent. Even in the west, some households may dislike the way firms can track spending patterns and send targetted marketing. The privacy issues of electronic money are a major concern to civil liberties.

Cash helps ration spending. People with a tendency to get into debt may purposefully decide to cut up their cards and restrict themselves to cash payments. The reason is that with a card, it is easier to spend money without feeling you are overspending. Psychologically, there is little barrier to buying on plastic. But, when you pay in cash, you have a greater emotional attachment to money and it makes you more conscious of what you are spending. Having to part with cash can help prevent impulsive purchases. In one study, 16% of households say they use cash because it is easier to manage their household budget when using cash.

Business costs. Although cashless payments have advantages (e.g. no need to take money to the bank), firms also become reliant on credit card and bank companies, who charge a commission for processing accounts. For some cards, it may account for 2% of the transaction, and with some credit card companies even more. This means business are losing out to card companies who will have increased market power in the absence of cash.

Freedom to choose. There is a big difference between an increased use of electronic payments to making it compulsory. If shops refuse cash, it is in effect a form of discrimination against those without bank accounts. Individuals may also have reasons to want to pay cash.

Hard to revert. Sweden made plans to shift to a cashless society but found that some groups were getting left behind - as a result, they agreed to 'put the brakes on'. One important thing is that when cash infrastructure has disappeared, it is very hard to put it back.

The emotional value of money. As a kid - getting a five-pound note from my uncle for my birthday gave great joy. Getting five pounds into your bank account doesn't have the same value. There is a certain psychological value in giving cash to charity rather than just a bank transfer, you feel more connected to the gift of giving.

Potential technological failures. There is always the risk that a digital economy is dependent on technology. If there was a power outage or internet breakdown, the economy would be brought to a halt. Cash is much more adaptable in difficult times.
Conclusion and personal note
This is an interesting question because I quite like dealing with cash and money. I often end up with cash because I organise not for profit running races. I then enjoy having £300 in cash which I then spend in town. Whilst I like spending cash, since COVID-19, I haven't spent any cash at all - only card. I feel 2020 is a tipping point COVID-19 is only going to accelerate the trend towards a cashless society.

The more I think about it, the more it makes sense to use a card for buying coffee to help speed up the process and get shorter queues. However, whatever the merits of bank cards and e-payments, I feel there is a strong argument to legislate to protect the role of cash and see it as an important utility for the financially marginalised. Access to cash and the ability to pay in cash should be maintained.
Related posts

# data[].attributes.attachment_link.title
Pros and cons of a cashless society - Economics Help

# data[].attributes.attachment_link.description
In recent years, there has been a growing trend toward using electronic payments rather than physical cash. This trend to a cashless society is likely to be accelerated by the Coronavirus which gives an impetus to avoiding unnecessary physical transactions. There are several advantages of a cashless society, such as...

# data[].attributes.attachment_link.description
Learn the pros and cons of a nation going cashless—and how you can help influence monetary policy with a PhD in Public Policy and Administration.

# data[].attributes.attachment_link.readable_text
This is a selection of resources on China's rising cashless society available from the NLB catalogue or the Internet and is not meant to be an exhaustive list.

NLB print and digital resources
China's fintech explosion: Disruption, innovation, and survival
In rapidly developing China, fintech is taking off amid a backdrop of growing consumption and a large, tech-savvy millennial generation. China's Fintech Explosion explores the transformative potential of China's financial-technology industry, covering subsectors such as digital payment systems, peer-to-peer lending and crowdfunding, credit card issuance and internet banks, blockchain finance and virtual currencies, and online insurance.

Retrieved from OverDrive. ( myLibrary ID login is required to access this ebook)
Super-sticky WeChat and Chinese society
This ebook provides a balanced and nuanced study of how the WeChat platform interweaves into the fabric of Chinese social and cultural life. It keeps the wider global and national social media landscape in view and compares and contrasts WeChat with Weibo, QQ and other Western social media platforms, including some of their mobile payment systems and their usage trends in China.

You may also like
China takes steps to become first cashless society after Covid-19
In the aftermath of the Covid-19 pandemic, China has launched its digital currency, the digital Yuan or RMB, in its bid to become a cashless society using contactless payments, and is poised to become the first country in the world to do so.
China is moving toward a cashless society
China is a pioneer in cashless transactions, propelled by Alibaba's Alipay and Tencent's WeChat Pay. According to the article's forecast, around 60 percent of China's 1.3 billion population will have made a purchase via mobile payment by 2023. As the trend continues, China may soon become a cashless economy, where digital payment methods totally replace cash.
China wants its rural villages to go cashless by 2020
Beijing announced its aim to make mobile payments within easy reach of its rural regions by the end of 2020. Guidelines (in Chinese) to make online financial services more accessible to rural residents have been jointly published by five Chinese regulating bodies including the Central Bank and the Ministry of Finance.
The real fight for Chinese mobile payments isn't taking place in China
Beijing announced its aim to make mobile payments within easy reach of its rural regions by the end of 2020. Guidelines (in Chinese) to make online financial services more accessible to rural residents have been jointly published by five Chinese regulating bodies including the Central Bank and the Ministry of Finance.
Cashless China: Would you use your face to pay?
Facial recognition payments system is the next big thing in China's cashless payment trend, and using it is very convenient and easy for those who have already tried the system.
This is China: The cashless era is coming
In 2018, a record 277.4 trillion RMB had transacted via mobile payments and as of June 2019, there were 633 million online payment users in China. The leap from cash to mobile payments was accelerated by advanced technologies and a high mobile penetration rate in the country.
China's great leap to wallet-free living
In China, cash is rapidly becoming a thing of the past. In this video, see how Alipay and WeChat Pay have become the mainstream mode of payment transactions in the Chinese city of Shenzhen, where people generally do not use cash for their daily activities at all.
China blazes trail in facial recognition payment systems
No money? No cards? No phone? No problem! Just smile to pay for your purchases at this self-service supermarket at Tianjin, China. Facial recognition payment systems have been rolled out in over 100 Chinese cities by tech-giant Alibaba and are both convenient and safe. The system is designed to read nodal points in human faces which act as one's facial signature.
China: A digital payments revolution
Alibaba and Tencent have been the main drivers for digital payments via mobile apps in China, particularly with their successful tie-up with retail platforms. In 2017, 890 million unique mobile payment users made around $17 trillion transactions and over a third of consumer payments in China are now cashless.
Payment methods in China: How China became a mobile-first nation
In 2018, around 83 percent of all payments in China were done via mobile phones, and the recent pandemic appears to have boosted online and mobile payment transactions in May 2020. The article also includes tips on how a foreigner can use mobile payment methods to boost their businesses in China.
Digitizing the Chinese New Year
In 2014, a digital hongbao feature was introduced by Tencent, a Chinese multinational conglomerate, as an alternative to the traditional gifting of red packets filled with money by elders to young people during Chinese New Year. From 2014 to 2018, over 769 million people had used this application to send virtual red packets to families and friends during Chinese New Year.
The real fight for Chinese mobile payments isn't taking place in China
Before the end of 2017, Chinese shoppers will be able to use Baidu's digital app to make payments at PayPal's 17 million merchants worldwide, in a tie-up between the American payment company and the Chinese tech giant.
China sets up clearing house for online payment services like AliPay and Tenpay
China has set up a national clearing house for banks and online payment systems in order to route transactions starting from 30 June 2018. This move will help regulators track and monitor the capital flows from online transactions thereby creating a safer Internet payment environment for consumers.
Take a tour of a Hema Supermarket and experience "new retail"
This video introduces the Hema Supermarket in Shanghai, Alibaba's "new retail" concept that merges online and in-store shopping to provide a seamless and more efficient shopping experience for consumers. Shoppers only need to download a mobile app and use their mobile phones to do the shopping by scanning barcodes to get instant product information.

Source: Alibaba Group
Last updated on Oct 2020

# data[].attributes.attachment_link.description
This is a selection of resources on China's rising cashless society available from the NLB catalogue or the Internet and...

# data[].attributes.body
Cashless Economy – One Step of Digital India

Mumbai Educational Trust - MET

https://www.met.edu › knowledge_at_met › cashless_eco...

# data[].attributes.attachment_link.title
More Americans are joining the ‘cashless’ economy

# data[].attributes.attachment_link.description
In less than a decade, the share of Americans who go “cashless” in a typical week has increased by double digits.

# data[].attributes.attachment_link.description
Verifying you are human. This may take a few seconds.

# data[].attributes.body
https://www.rmit.edu.au/news/acumen/the-move-to-a-cashless-society-is-well-underway

# data[].attributes.attachment_link.title
Going cashless may hurt low income families the most

# data[].attributes.attachment_link.description
What’s in your wallet? It’s more than just a popular slogan now that some area restaurants are going or have already gone cashless (meaning they don’t accept cash), which puts some customers in a bind. Beyond limiting dining options, going cashless also has broader implications for low income citizens.

# data[].attributes.attachment_link.description
Reducing transaction costs, closing the financial inclusion gap, and fighting corruption are just a few.

# data[].attributes.attachment_link.authors[].name
Wright, Richard & Tekin, Erdal & Topalli, Volkan & McClellan, Chandler & Dickinson, Timothy & Rosenfeld, Richard

# data[].attributes.attachment_link.title
Less Cash, Less Crime: Evidence from the Electronic Benefit

# data[].attributes.attachment_link.description
It has been long recognized that cash plays a critical role in fueling street crime due to its liquidity and transactional anonymity. In poor neighborhoods where street offenses are concentrated, a si

# data[].attributes.body
https://www.researchgate.net/publication/366409570_Fostering_Mobile_Payment_Adoption_A_Case_of_Near_Field_Communication_NFC

# data[].attributes.attachment_link.provider_name
The United Food & Commercial Workers International Union

# data[].attributes.attachment_link.title
Who gets left behind by a cashless society? - The United Food & Commercial Workers International Union

# data[].attributes.attachment_link.description
Many companies are making big promises about cashless payments: You’ll soon be able to buy whatever you need with just the tap of a button, scan of your phone, or swipe of a card. But in our collective hurry to spend more money with greater speed and ease, we’re leaving millions of Americans behind and millions more at risk – and benefiting only a few at the top.

# data[].attributes.attachment_link.title
From Cash to Cashless: UPI's Impact on Spending Behavior Among Indian Users and Prototyping Financially Responsible Interfaces

# data[].attributes.attachment_link.description
Unified Payments Interface (UPI) is a groundbreaking innovation making waves in digital payment systems in India. It has revolutionised financial transactions by offering enhanced convenience and security. While previous research has primarily focused on the macroeconomic effects of digital payments, our study examines UPI's impact on individual spending behavior.

# data[].attributes.attachment_link.title
What Are the Privacy Implications of a Cashless Society? - Lawpath

# data[].attributes.attachment_link.description
As we edge closer towards living in a completely cashless society, legal questions regarding privacy abound. Find out more here.

# data[].attributes.attachment_link.title
Cashed Out: How a Cashless Economy Impacts Disadvantaged Communities and Peoples

# data[].attributes.attachment_link.description
Ubiquitous access to mobile banking, fintech innovations, increased speeds and reduced costs of electronic banking, and changing consumer tastes (including generational change) had been steadily transforming the consumer financial landscape toward greater use of electronic payments.

# data[].attributes.attachment_link.title
The Impact of a Cashless Economy on American Privacy – The Marriott Student Review

# data[].attributes.body
https://www.fdic.gov/consumers/consumer/news/june2020.html

# data[].attributes.attachment_link.title
Would a Cashless Society Be a Better Society? | J.P. Morgan

# data[].attributes.attachment_link.description
As physical cash use rapidly declines, what would the implications of a cashless society be? We asked two experts to weigh in on either side of the debate.

# data[].attributes.body
https://www.westernsydney.edu.au/ics/news/in_the_conversation/cashless_payment_is_booming,_thanks_to_coronavirus._so_is_financial_surveillance

# data[].attributes.attachment_link.title
Institute for Culture and Society | Cashless Payment is Booming, Thanks to Coronavirus. So is Financial Surveillance

# data[].attributes.attachment_link.description
Cashless Payment is Booming, Thanks to Coronavirus. So is Financial Surveillance

# data[].attributes.attachment_link.title
Eschewing Cash: The Challenges of Cashless Transactions in the Philippines on JSTOR

# data[].attributes.attachment_link.description
Vandana Prakash Nair, Eschewing Cash: The Challenges of Cashless Transactions in the Philippines, Journal of Southeast Asian Economies, Vol. 33, No. 3 (December 2016), pp. 387-397

# data[].attributes.attachment_link.title
Navigating the Transition: Impacts, Challenges and Future Prospects of a Cashless Society | OxJournal

# data[].attributes.attachment_link.description
The global shift towards a cashless society represents a significant transformation in the way economies operate, driven by advancements in digital technology and the increasing preference for electronic transactions. This paper explores the implications, challenges, and future prospects of transitioning to a cashless society, by drawing on case studies from various countries at different stages of this transition. The study examines the potential benefits of a cashless society, including increased financial inclusion, reduced transaction costs, and enhanced transparency. However, we also address critical challenges, such as digital security risks, the advancements of the technological industry, and the persistence of cash in certain cultures and economies. Through a comprehensive analysis of these factors, the paper provides insights into the socioeconomic impacts of a cashless transition and offers a clear understanding of what lies ahead for the many countries embarking on this evolutionary change. While doing this, we will also highlight that although the move towards a digital economy holds significant promise, it requires careful planning, robust infrastructure, and adaptive strategies to eliminate risks and ensure that this journey is smooth and successful.

# data[].attributes.attachment_link.title
Cashed Out: How a Cashless Economy Impacts Disadvantaged Communities and Peoples

# data[].attributes.attachment_link.description
Ubiquitous access to mobile banking, fintech innovations, increased speeds and reduced costs of electronic banking, and changing consumer tastes (including generational change) had been steadily transforming the consumer financial landscape toward greater use of electronic payments.

# data[].attributes.body
https://www.weforum.org/stories/2020/01/benefits-cashless-society-mobile-payments/

# data[].attributes.attachment_link.description
Reducing transaction costs, closing the financial inclusion gap, and fighting corruption are just a few.

# data[].attributes.attachment_link.title
Cash will soon be obsolete. Will America be ready? | Brookings

# data[].attributes.attachment_link.description
Eswar Prasad examines the economic, financial, and societal effects of the end of cash.

# data[].attributes.attachment_link.readable_text
What Is Financial Technology - Fintech?

Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. ​​​At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is a combination of "financial technology".

When fintech emerged in the 21st Century, the term was initially applied to the technology employed at the back-end systems of established financial institutions. ​Since then, however, there has been a shift to more consumer-oriented services and therefore a more consumer-oriented definition. Fintech now includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management to name a few.

Fintech also includes the development and use of crypto-currencies such as bitcoin. That segment of fintech may see the most headlines, the big money still lies in the traditional global banking industry and its multi-trillion-dollar market capitalization.

Understanding Fintech

Broadly, the term "financial technology" can apply to any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping. Since the internet revolution and the mobile internet/smartphone revolution, however, financial technology has grown explosively, and fintech, which originally referred to computer technology applied to the back office of banks or trading firms, now describes a broad variety of technological interventions into personal and commercial finance.

Fintech now describes a variety of financial activities, such as money transfers, depositing a check with your smartphone, bypassing a bank branch to apply for credit, raising money for a business startup, or managing your investments, generally without the assistance of a person. According to EY's 2017 Fintech Adoption Index, one-third of consumers utilize at least two or more fintech services and those consumers are also increasingly aware of fintech as a part of their daily lives.

Key Takeaways

Fintech in Practice

The most talked-about (and most funded) fintech startups share the same characteristic: they are designed to be a threat to, challenge, and eventually usurp entrenched traditional financial services providers by being more nimble, serving an underserved segment or providing faster and/or better service.

For example, Affirm seeks to cut credit card companies out of the online shopping process by offering a way for consumers to secure immediate, short-term loans for purchases. While rates can be high, Affirm claims to offer a way for consumers with poor or no credit a way to both secure credits and also build their credit histories. Similarly, Better Mortgage seeks to streamline the home mortgage process (and obviate traditional mortgage brokers) with a digital-only offering that can reward users with a verified pre-approval letter within 24 hours or applying. GreenSky seeks to link home improvement borrowers with banks by helping consumers avoid entrenched lenders and save on interest by offering zero-interest promotional periods.

For consumers with no or poor credit, Tala offers consumers in the developing world microloans by doing a deep data dig on their smartphones for their transaction history and seemingly unrelated things, such as what mobile games they play. Tala seeks to give such consumers better options than local banks, unregulated lenders and other microfinance institutions.

In short, if you have ever wondered why some aspect of your financial life was so unpleasant (such as applying for a mortgage with a traditional lender) or felt like it wasn't quite the right fit, fintech probably has (or seeks to have) a solution for you. For example, fintech seeks to answer questions like, "Why is what makes up my FICO score so mysterious and how it is used to judge my creditworthiness?"

As such, loan originator Upstart wants to make FICO (as well as other lenders both traditional and fintech) obsolete by using different data sets to determine creditworthiness. They include employment history, education, and whether a would-be borrower knows their credit score to decide on whether to underwrite and how to price loans. Similar treatment is given to financial services that range from bridge loans for house flippers (LendingHome), to a digital investment platform that addresses the fact that women live longer and have unique savings requirements, tend to earn less than men and have different salary curves that can leave less time for savings to grow ( Ellevest).

Fintech's Expanding Horizons

Up until now, financial services institutions offered a variety of services under a single umbrella. The scope of these services encompassed a broad range from traditional banking activities to mortgage and trading services. In its most basic form, Fintech unbundles these services into individual offerings. The combination of streamlined offerings with technology enables fintech companies to be more efficient and cut down on costs associated with each transaction.

If one word can describe how many fintech innovations have affected traditional trading, banking, financial advice, and products, it's 'disruption,' like financial products and services that were once the realm of branches, salesmen and desktops move toward mobile devices or simply democratize away from large, entrenched institutions.

For example, the mobile-only stock trading app Robinhood charges no fees for trades, and peer-to-peer lending sites like Prosper Marketplace, Lending Club and OnDeck promise to reduce rates by opening up competition for loans to broad market forces. Business loan providers such as Kabbage, Lendio, Accion and Funding Circle (among others) offer startup and established businesses easy, fast platforms to secure working capital. Oscar, an online insurance startup, received $165 million in funding in March 2018. Such significant funding rounds are not unusual and occur globally for fintech startups.

Entrenched, traditional banks have been paying attention, however, and have invested heavily into becoming more like the companies that seek to disrupt them. For example, investment bank Goldman Sachs launched consumer lending platform Marcus in 2016 and recently expanded its operations to the United Kingdom.

That said, many tech-savvy industry watchers warn that keeping apace of fintech-inspired innovations requires more than just ramped up tech spend. Rather, competing with lighter-on-their-feet startups requires a significant change in thinking, processes, decision-making, and even overall corporate structure.

Fintech and New Tech

New technologies, like machine learning/ artificial intelligence, predictive behavioral analytics, and data-driven marketing, will take the guesswork and habit out of financial decisions. "Learning" apps will not only learn the habits of users, often hidden to themselves, but will engage users in learning games to make their automatic, unconscious spending and saving decisions better. Fintech is also a keen adaptor of automated customer service technology, utilizing chatbots to and AI interfaces to assist customers with basic task and also keep down staffing costs. Fintech is also being leveraged to fight fraud by leveraging information about payment history to flag transactions that are outside the norm.

Fintech Landscape

Fintech startups received $17.4 billion in funding in 2016 and were on pace to surpass that sum as of late 2017, according to CB Insights, which counted 26 fintech unicorns globally valued at $83.8 billion. The same firm reported that there were 39 VC-backed fintech unicorns worth $147.37 billion by the end of 2018.

North America produces most of the fintech startups, with Asia a relatively close second. Global fintech funding hit a new high in the first quarter of 2018 let by a significant uptick in deals in North America. Asia, which could surpass the United States in fintech deals, also saw a spike in activity. Funding activity in Europe was at a five-quarter low in Q1 2018 but surged back in Q2.

Some of the most active areas of fintech innovation include or revolve around the following areas:

Cryptocurrency and digital cash.

Blockchain technology, including Ethereum, a distributed ledger technology (DLT) that maintain records on a network of computers, but has no central ledger.

Smart contracts, which utilize computer programs (often utilizing the blockchain) to automatically execute contracts between buyers and sellers.

Open banking, a concept that leans on the blockchain and posits that third-parties should have access to bank data to build applications that create a connected network of financial institutions and third-party providers. An example is the all-in-one money management tool Mint.

Insurtech, which seeks to use technology to simplify and streamline the insurance industry.

Regtech, which seeks to help financial service firms meet industry compliance rules, especially those covering Anti-Money Laundering and Know Your Customer protocols which fight fraud.

Robo-advisors, such as Betterment, utilize algorithms to automate investment advice to lower its cost and increase accessibility.

Unbanked/underbanked, services that seek to serve disadvantaged or low-income individuals who are ignored or underserved by traditional banks or mainstream financial services companies.

Cybersecurity, given the proliferation of cybercrime and the decentralized storage of data, cybersecurity and fintech are intertwined.

Fintech Users

There are four broad categories of users for fintech: 1) B2B for banks and 2) their business clients, and 3) B2C for small businesses and 4) consumers. Trends toward mobile banking, increased information, data, and more accurate analytics and decentralization of access will create opportunities for all four groups to interact in heretofore unprecedented ways.

As for consumers, as with most technology, the younger you are the more likely it will be that you are aware of and can accurately describe what fintech is. The fact is that consumer-oriented fintech is mostly targeted toward millennials given the huge size and rising earning (and inheritance) potential of that much-talked-about segment. Some fintech watchers believe that this focus on millennials has more to do with the size of that marketplace than the ability and interest of Gen Xers and Baby Boomers in using fintech. Rather, fintech tends to offer little to older consumers because it fails to address their problems.

When it comes to businesses, before the advent and adoption of fintech, a business owner or startup would have gone to a bank to secure financing or startup capital. If they intended to accept credit card payments they would have to establish a relationship with a credit provider and even install infrastructure, such as a landline-connected card reader. Now, with mobile technology, those hurdles are a thing of the past.

Regulation and Fintech

Financial services are among the most heavily regulated sectors in the world. Not surprisingly, regulation has emerged as the number one concern among governments as fintech companies take off.

As technology is integrated into financial services processes, regulatory problems for such companies have multiplied. In some instances, the problems are a function of technology. In others, they are a reflection of the tech industry's impatience to disrupt finance.

For example, automation of processes and digitization of data makes fintech systems vulnerable to attacks from hackers. Recent i nstances of hacks at credit card companies and banks are illustrations of the ease with which bad actors can gain access to systems and cause irreparable damage. The most important questions for consumers in such cases will pertain to the responsibility for such attacks as well as misuse of personal information and important financial data.

There have also been instances where the collision of a technology culture that believes in a " Move fast and break things" philosophy with the conservative and risk-averse world of finance has produced undesirable results. San Francisco-based insurtech startup Zenefits, which was valued at over a billion dollars in private markets, broke California's insurance laws by allowing unlicensed brokers to sell its products and underwrite insurance policies. The SEC fined the firm $980,000 and they had to pay $7 million to California's Department of Insurance.

Regulation is also a problem in the emerging world of cryptocurrencies. Initial coin offerings (ICOs) are a new form of fundraising that allows startups to raise capital directly from lay investors. In most countries, they are unregulated and have become fertile ground for scams and frauds. Regulatory uncertainty for ICOs has also allowed entrepreneurs to slip security tokens disguised as utility tokens past the SEC to avoid fees and compliance costs.

Because of the diversity of offerings in fintech and the disparate industries it touches, it is difficult to formulate a single and comprehensive approach to these problems. For the most part, governments have used existing regulations and, in some cases, customized them to regulate fintech.

They have established fintech sandboxes to evaluate the implications of technology in the sector. The passing of General Data Protection Regulation, a framework for collecting and using personal data, in the EU is another attempt to limit the amount of personal data available to banks. Several countries where ICOs are popular, such as Japan and South Korea, have also taken the lead in developing regulations for such offerings to protect investors.

# data[].attributes.attachment_link.description
Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. ​​​At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones.

# data[].attributes.attachment_link.title
Going Cashless: What Can We Learn from Sweden’s Experience?

# data[].attributes.attachment_link.description
Sweden is expected to become the world’s first cashless society by 2023. What can other countries learn from its journey?…Read More

# data[].attributes.attachment_link.description
Learn the pros and cons of a nation going cashless—and how you can help influence monetary policy with a PhD in Public Policy and Administration.

# data[].attributes.attachment_link.title
Going Cashless: Central Banks and Digital Currencies – IMF F&D Magazine - Point of View - IMF F&D Magazine

# data[].attributes.attachment_link.description
How Central Banks should think about digital currencies, digital payments and the future of money. Stefan Ingves, governor of the world’s oldest central bank in Sweden, explains their move to a cashless society.

# data[].attributes.body
https://www.brookings.edu/articles/cash-will-soon-be-obsolete-will-america-be-ready/

# data[].attributes.attachment_link.title
Cash will soon be obsolete. Will America be ready? | Brookings

# data[].attributes.attachment_link.description
Eswar Prasad examines the economic, financial, and societal effects of the end of cash.