The world is moving towards a cashless future. In developed countries like the US, UK, Sweden, Denmark and Norway, cash is being used less and less for transactions. In Sweden, for instance, only 3% of transactions are made using cash.
There are several reasons for this shift. First, it’s more convenient to use a card or mobile phone to pay for goods and services. Second, it’s more secure since there’s no risk of losing cash or having it stolen. Third, it’s more efficient – businesses don’t have to worry about managing and storing cash.
So what does the future of cashless payments look like?
There are several trends that are driving the move towards cashless payments.
One of the most notable trends in the evolution of cashless payments is the rise of mobile payments. With the growing popularity of smartphones and tablets, it is now easier than ever to make payments on the go. There are a variety of mobile payment solutions available, including Apple Pay, Android Pay and Samsung Pay. In China, for example, the leading mobile payment app, Alipay, has over 600 million users.
Another trend that is impacting the evolution of cashless payments is the increasing use of digital wallets. Digital wallets allow users to store their payment information in a secure way and make payments with a tap of their phone. In addition, many digital wallets also offer loyalty and rewards programs, which can further incentivize users to move away from cash.
Another trend is the rise of digital currencies, such as Bitcoin. These are not regulated by governments or financial institutions, and can be used to buy goods and services online.
Finally, there’s the trend towards “tokenization”. This is where your card or phone is linked to a specific account, such as your Apple ID or PayPal account. This makes payments more secure and safe.
What does all this mean for the future of cash?
It’s likely that cash will become increasingly redundant. In Sweden, the central bank is considering phasing out cash altogether. This would be a major step, but it’s not unthinkable.
In the future, we’re likely to see a world where most payments are made electronically, using cards, phones or digital currencies. Cash will still have a role to play, but it will become increasingly marginal.
As the world becomes increasingly cashless, it is important to understand the trends that are driving this change. By understanding the trends, businesses can make the necessary adjustments to their operations to stay ahead of the curve.
OnionPay is the leading Indian gateway aggregator, providing businesses with the ability to accept payments from multiple sources through a single platform. Owned and operated by Zhudao infotech private limited, OnionPay helps businesses to streamline their payment processing, reduce their costs, and improve their customer experience.