Fintech products offer a convenient way to handle a wide range of financial tasks. For instance, due to the rise in mobile payment apps and digital wallets, it has become less necessary for people to carry cash.
It’s easy to understand how people can benefit from this option. If you don’t need to carry cash, then you won’t have to be worry about your money being lost or stolen. In addition, it eliminates the possibility that you’ll find yourself in a situation where you don’t have enough cash on you to make a purchase. You can make purchases with your smartphone or a similar device instead.
A Cashless Model
The shift to a cashless society could affect the retail industry. Companies such as Amazon and Walmart are experimenting with stores where customers can make purchases digitally. After adding items to their cart, they can either check out via a machine or walk straight through the store’s doors. Sensors can detect which items a customer walked out with and remove the money from their accounts accordingly. This certainly makes the process of buying various goods much more efficient.
While a cashless model could mean that fewer human employees would be needed during the checkout process, the rise in cashless stores is expected to create new job opportunities. Quite simply, the technology used to facilitate cashless stores needs to be maintained and secured. That creates a greater demand for people with relevant skills. As these technologies become increasingly widespread, more people will be able to find jobs in this capacity.
In addition, the fact that individuals are no longer carrying cash as much as they used to could impact people experiencing homelessness. People who ask for money on the street or who sell small goods in exchange for money cannot typically accept any form of payment except cash. Fortunately, there is a solution. Governments could help everyone to adjust by taking appropriate measures. In one instance, a Swedish magazine company that employs vendors experiencing homelessness provided them with credit card readers to ensure that they could accept various forms of payment. While this is an example of an independent company taking steps to protect people experiencing homelessness in a cashless society, governments can learn from such an example by providing these people with similar opportunities and resources.
The Need to Adapt
It’s also worth noting that fintech may help many underbanked and unbanked people to prepare for a cashless society. While it’s often necessary for a person to have a bank account or similar financial account in order to use a payment app or digital wallet, there are many individuals throughout the world who lack access to traditional banking services. Fintech companies have filled in the gaps by offering digital bank accounts for those who otherwise wouldn’t be able to create them. Other fintech products, such as prepaid debit cards, enable people who typically rely on cash to make payments in a cashless society.
Of course, these are not the only ways that society as a whole will have to begin to adapt to the shift toward a cashless society. Businesses and governments must also ensure that they have the proper infrastructure to accept various forms of digital payments. They will need to make sure that fintech security is prioritized in order to guard against breaches. Additionally, they will need to make sure that customers fully understand the degree to which their information is kept private (not only from criminals, but from other businesses) when they make purchases at cashless stores. These are all steps that we’ll need to take in the coming years as more people choose not to carry cash.
Again, that isn’t to say this is a worrisome shift. The fintech revolution has already improved the lives of many people by giving them access to financial services, providing small local businesses with greater access to funding, and simplifying a wide range of financial tasks. The death of cash will yield a net benefit to society in the long run. However, it will be easier for individuals to take advantage of these changes sooner rather than later if everyone from business owners to government leaders takes steps to prepare accordingly. These points illustrate some of the ways in which they can do so. With fewer people using cash, some may not be able to adapt as quickly as others. We can help them to adapt more efficiently by keeping these essential points in mind.