How often have you heard people say ‘digital payments are the future?’
If stats are anything to go by, then it can be concluded that these people really are onto something. 47% of the consumers nowadays prefer digital payments over cash payments.
If you dig a little deeper, you will notice that majority of these people are Millennials. However, the shift in mindset is not just limited to a specific segment. Its impact is on a macro-economical level.
Several countries have started adopting a cashless economy. Take a look at some of these:
In Belgium, it’s illegal for people to buy real estate using cash. In fact, apart from secondhand items, you cannot buy anything in excess of 3000 Euros using cash.
In late 2016, the government of India had introduced a policy known as demonetization. Basically, what they did was that they banned 500 and 1000 Rupee notes.
The reason why the prime minister of the country took this decision was to curb the underground economy and give small merchants and retailers a chance to be a part of the cashless economy.
In late 2016, Citibank Australia made the decision to get rid of all the cash in their branches. They also made the decision to get rid of the cash machines.
The bank took this decision due to shift in consumer demand. In the past year, only 4% of their customers had engaged in cash transactions.
In addition to addressing customer demand, the authorities also felt that moving to cashless economy would help the curb criminal activity in the country. Furthermore, they also pointed out that increased deposits of bills would encourage residents to save their money.
Singapore is somewhat of a leader when it comes to adopting cashless economy in Asia. Several retailers in the country have completely stopped dealing in cash.
In addition to that, in 2014 Singapore became one of the first nations in the world to adopt a 24/7 interbank system. The country is also one of the most Bitcoin-friendly business environments in the world.
It’s only natural that the country that introduced the concept of bank notes should be the first one that stops using them.
Nowadays, you cannot purchase subway tickets using cash in Sweden. According to representatives of the central bank, in 2015 20% of in store purchases were made using cash.
The reason behind this was that the population of the country is pretty low as it is. As a result, the process of distributing currency became a lot harder and costly. There are very few banks in Sweden and digital payment systems made it easier to streamline the payment processes.
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