Top 5 Benefits of Moving into A Cashless Society

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Team MONEYME|13 October 2020| 4 min read

Australia was predicted to be cashless by 2022. We’ve listed out the top 5 reasons why today’s market is digging the whole idea that makes it a not-so-farfetched reality:

1. No more waiting in long queues

Going cashless significantly reduces waiting and speeds up transactions in retail stores. It lessens the time required to move money and saves you time and effort. A recent survey by Capterra revealed that 58% of Australians currently have a mobile wallet installed on their devices – 98% of which expressed their desire to continue using it to pay for future purchases.

Imagine yourself going to the nearest café to grab a cup of coffee or lining up to score a great Black Friday sale with the majority of the people in queue and ready to pay with their digital wallets. Instead of fumbling for cash or rushing to the nearest ATM, cashless payment is the easiest way to go.

2. Perks and discounts

If you’re someone who prefers to use a digital card and also called a virtual card over cash, that’s good news. Nowadays when you go digital, you get discounts.

With rewards and loyalty programs that comes when you download the app, you get to earn points on rides, food and retail purchases. Some programs are free which means you can automatically join and earn points per AUD spent if you’re already a registered user. You can even link your rewards account to your frequent flyer account, allowing you to earn bonus points for flights in all classes and more.

3. Easy expense tracking

Moving into electronic payments doesn’t only make daily transactions faster – it also makes it easier for you to track every single dollar you spend. Having all your transactions on record gives you a clearer picture of what you use your money for on a daily basis, helps you file income tax returns, and instantly provides an accurate and reliable paper trail of your daily living expenses for financial assistance applications.

Plus, if you can keep tabs on your spending, won’t it shed new light on better budgeting? We also think it will.

4. Lower risk

Your mobile phone might be safer than your wallet. Traditional payment methods are risky and equate to reduced transparency in purchases. Once your cash is lost, it’s gone forever unless someone else picked it up and returned it to you out of goodwill. On the other hand, the cash on your digital wallet is completely intangible. If your smartphone gets stolen, you can easily block or disable your digital or virtual credit card by calling the card issuer or accessing your account online and changing the security settings.

5. Good hygiene practice

According to new research by MyState Bank, two in three Australians (68%) have been using less cash since the COVID-19 outbreak. Businesses may have shortened operating hours and everyone’s social life may be put on hold for a while, but people still do go out for the bare essentials.

With hygiene on top of everyone’s priority, Australians opted to shift to contactless payments via credit cards, debit cards and Tap n Pay options using their Android or Apple wallet. The rise of online shopping became predominant as well, all the more increasing the demands for instant payment services like the Freestyle Virtual Mastercard.

With all that being said, going cashless equates to one thing: convenience. Everything is one tap away, and you do most of the stuff using just your mobile phone. This major shift has paved the way to better access to cash. And while the whole idea of going cashless is still being shunned by some, the younger generation and the current world situation calls for it, making that 68% a figure that will continue to grow faster and sooner.

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