The United States is moving closer to an entirely cashless society and we’re not the only ones. Sweden is primarily cashless with just a few minor exceptions, and many other countries around the world are also edging closer to this type of economic system. The reasons for this are many, and just a few of those advantages are listed below.
Reduce Criminal Activity
Money that’s earned through criminal activity must be “laundered,” which is a process of creating a legitimate trail for the money. It’s also easier to avoid paying income taxes on cash payments. In these two ways, criminals can avoid incriminating themselves for the crimes they commit. However, a cashless society makes this difficult because all transactions leave a record that can be verified. When there is no cash, it makes it more challenging to sell drugs or stolen goods on the street.
Money Management is Easier
Digital banking has already become extremely efficient, recording transactions in real-time. Except in rare circumstances, a transaction will show up in your banking app almost immediately after it has been processed. This helps consumers avoid overspending or accidentally maxing out their credit cards. When you carry cash around, you may end up spending money you allocated for a different expense, leaving you with less money than you planned to spend.
The accuracy of digital banking makes going cashless a time saver as well. Thinking back just a few years, you might remember your own parents sitting at a table or desk, struggling to balance their checkbooks and planning how they would pay their bills. The use of online banking and auto bill pay apps helps to eliminate the need to do monthly banking by hand in that way. Instead, you’ll only need to make sure you have adequate funds in your account to cover your monthly expenses. The banking app will do the rest.
While it may take a few more generations, it’s likely that we’ll find ourselves in a completely cashless society in the near future. In addition to the advantages mentioned here, it’s just a more convenient way to conduct financial affairs. It makes it easier to safeguard your finances as well as helping consumers and businesses complete transactions more efficiently.