Heard of Denmark? Sure, it’s a beautiful country but that’s not the reason we are talking about it. Denmark is also one of the few countries to have adopted a cashless economic system.
In fact, just a few years back, the country’s central bank stopped printing bank notes altogether. Cashless payments are not just popular in European region. Americans have also started adopting them.
Contrary to what you might think, cashless payments are not a new concept. They have been around for some time now. Here’s how:
Impact of Uber
Remember the time when we didn’t have Uber? We are pretty sure you’d prefer not to and we don’t blame you. Previously people relied on public transport, which wasn’t the most convenient option.
Apart from revolutionizing the travel sector, Uber has also had a major impact on cashless economy. Uber was one of the first few companies that provided a seamless experience to its customers and this has allowed them to expand their business in other segments as well.
It has also resulted in higher customer expectations and has opened the gateway for mobile payments.
One of the biggest advantages of cashless systems is that unlike traditional systems they are not as costly or complicated. This is because consumers want payments systems, which are convenient and can be easily implemented.
Cashless payments are just what they need. Just take a look at the benefits of having this kind of system in a bank. Normally, banks generate revenue by reinvesting the money customers have deposited.
However, they need to make sure they retain a percentage of the amount. This is not the case with cashless systems since there’s no physical cash involved. Therefore, banks can reinvest more money and generate higher revenue.
This just gives you an idea about the impact cashless payments have had on the banking industry.
People rarely ever go to shopping centers anymore and why should they when they have wider options available online. Cashless payments are ideal for this industry since service providers offer discounts and cashbacks to people who use their services.
Previously payments were made via retail POS systems however, that too is slowly changing due to an increase in popularity of digital wallets.
Smartphone technology too has evolved over the years and this has had a direct impact on cashless payment industry. Statistics show that by 2019, the industry will be generating more than $1 trillion.
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