Saturday, January 7, 2017
America waits too long in the queue to go cashless
Author Bio : Anand Rajendran is CEO and Co-Founder of Dectar apps, best PHP scripts development company located in India. Dectar is a part of Casperon Technologies a leading social and mobile development company which is Developing Uber for X apps for the past 3 years. I’m a Tech geek, Digital marketing expert, Entrepreneur, and Atheist who loves to write everything about PHP Scripts and mobile application development.
What could be lovelier than to go shopping with a good sum in our wallet? Though the revolution of plastic money has made things go easy the bliss of spending money in the form of cash prevails. Debit and credit cards are handy to use all the time, even when it comes to carrying them along. We need not keep an account of our money all the time in case of using online transaction as they are done automatically and we get the results in a text message within a fraction of a second. Sweden has converted almost 98% of its transactions into digital ones and stands tall pioneering the go cashless revolution. Other the other hand America, which has all the power to go cashless, still hesitates without trust.
We a can go without cash and swipe a credit or a debit card in a supermarket orat any other bigger place, but what can be done when it comes to smaller transaction? Every other shop, along the lane cannot be expected to have the option to swipe a card right? Cash alone can stand in these situations. Petty transactions with people who do small business has nothing to do with these go cashless ideas until things go completely digital. In the U.S small businesses hardly goes for plastic money. “Cash only” signs at most of the corner shops in the place are a proof.
The crime with credit cards
While using credit cards around 3% of the amount paid gets charged as fee. When we cumulate all these fees it would amount to something big .The extra service charges made along with the regular transactions are also countable most of the times. Just imagine when we need to pay service fee every time when we swipe for a purchase or when we make an online transaction which we don't have to get worried when we pay the sum in the form of handy cash. So people who are too cautious about the charges will fall back from going completely digital when it comes to money.
Digital money and young people
Plastic money and the digital transactions can be handled by adults, but how about when it comes to young ones? Usage of plastic money even by kids for small things sounds offbeat. Security is the key factor when it comes to young people using digital money. They can be misled by people or prone to any evil trap set for them. They cannot safeguard more over the pin and the other crucial things all the time. Going wholly cashless never sounds valid when it comes to young people. In the San Francisco Fed report Doug Canover, the co-author of the report said that it pushes against the conventional wisdom that cash is not being used by the younger generation.
People’s kindness for cash
People who still don't bother themselves with any other form of money other than cash still exist. Depending upon the cool cash inspire of the other simpler modes of transaction, sometimes sounds strange, but there are a good number of people who never rely on the digital money. For about 10 million household it’s still the cash, which stands as the only form of currency. There are people who either have a savings account or a checking account, but not both and they are the ones who stand by the cash alone policy. Only to a particular extent amount can be withdrawn from ATMs, incase if one wants to use a bigger amount they are supposed to fetch it from the bank directly and this can be one of the reasons why people keep themselves and their money back from reaching the bank.
The jitters with credit cards
No matter how much ever flexible and simple technology may drive us, thereexist threats in one way or the other. Credit cards and debit cards are prone to be hacked and used by any heinous force if we do not secure enough. People always have this angst of their money being accessed and used in an unauthorized way. Confidential facts need to be perfectly maintained in case of using the credit using digital money. At times even when the user is very cautious about the usage there is threat of illicit people misusing things.
Taking control over cash is easier
Most of the people have the habit of spending money only in the form of cash. Meeting our needs using cash helps us to keep an account of all that is being spent precisely rather than the ease of swiping the card. As we tackle money physically while handling cash we tend to be more cautious about the sum that is being spent and we tend to cut costs to be on the safer side. When we are clever enough in handling money we can save ourselves from the possible debts and their problems and this is what dealing with cash helps us with. As we go out spending using cash our wallet shrinks whereas when we do the same with out digital money we are never given an alarming sign when we go beyond the limit.
Bargaining for the best
Paying our sums in the form of cash gives us the offer to bargain and get a better deal on everything we buy. A purchase using our credit card does not avail this to us. Not at all time prices are fair and pleasant, but by bargaining we can get perfect who knows even lesser prices on the go.
When it comes to housing market cash stands top notch as certain companies, sign their deals only with ready cash and refuse digital money. In early 2014 home sale purely on cash made a record of 43%, which was only 19% the previous year as per the RealtyTrac. Only money scheme goes well with people who have hot cash saved with them for the sake of buying a house, but turns out to be terrible for those who are looking for a supporting loan from the bank. So cash proves to be a remarkable form of currency here once again!
The connective chaos
Once, after purchasing for huge amount how would it turn out to be it the transaction is not possible due a network connectivity issues or ant other minor problem with the bank side? Nothing can be more gruesome than that. If this could happen, it would not only serve to embarrassing but also a waste of time and effort. At these cases completely relying on digital money is a big risk altogether.
The anonymous cash
With every transaction being made in the digital way there are a number of chances for the existence of anonymous cash .The new form of digital currency is believed to eliminate black money altogether, but the illegal transactions can still exist by the exchange on some other goods other than cash. Government may keep track of all the transactions that are being made through prepaid credit cards and the new digital currencies to keep a control over the illegal transactions, but the privacy of individuals is in vain.
Cash still reigns
By the research at the Richmond Federal Reserve Bank for a period of two years, it is determined that more than 2 billion transaction between 2010 and 2012 in the US retail chain is done 75% using cash. Though removal of hard cash is hard, it is predicted that by 2020 only 57 % of the transaction will be made by cash and that gets deducted year by year at the rate of 2.5%. America still waits to gain its complete trust to turn out to be a cashless society.
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