We’ve all heard that cash is soon to become obsolete. With the rise of digital apps like Venmo, Square Cash, and PayPal, it seems only natural that paper bills will fade from existence. The one problem with this assertion is that it’s not true. In fact, the exact opposite is happening: as technology develops, we need to use the cash more often than ever before—and our lives depend on it!
The History of Cash
When you think about money, you probably imagine paper bills and coins in your wallet or pocket. But long before humans invented currency as we know it today, people paid for goods and services using other methods.
In China, around 700 B.C., a form of paper money called jiaozi was used to trade goods like silk, grain, salt, and tea. The notes were worth a certain amount of silver—but they could only be used within the borders of China itself because no one else accepted them.
When Marco Polo returned from his travels to China in 1295 with details on how this paper money worked (and a few samples), he introduced the concept to Europe—where it took off like wildfire! The first European banknotes were issued by banks in Italy during the Renaissance period around 1600; these notes quickly spread across Europe over time as bankers realized their potential to make profits off interest payments from depositors or investors who purchased stock shares in their businesses.[1]
The benefits of Cash
Cash is used to buy and sell goods and services in the real world, but it’s also the fastest way to pay for things. You don’t need a credit card or debit card, or even an app or website.
Cash is accepted everywhere by everyone. No one will refuse it—unless they’re running out of change! And cash transactions often occur faster than using other methods because you don’t have to wait in line at a teller window like you would with an ATM or bank branch.
The drawbacks of cash
Cash, while still the most popular form of payment, has some big drawbacks. It is not safe, secure, private, and easy to track. Cash is also inconvenient and slow because you have to go physically get the cash from a bank or ATM machine. This makes it difficult for you to use your own money when you are at restaurants or bars, for example. Cash does not offer any flexibility either as it can only be spent once instead of multiple times like credit cards or debit cards do (eBay).
What is digital transactions
Digital transactions are fast, cheap and secure. They’re also environmentally friendly.
If you’re thinking about using cash, consider the following benefits of digital money:
- Speed: Digital transfers are instant—in most cases, faster than any other form of payment.
- Cost: Because there’s no physical currency involved in a digital transaction, there’s no need to pay for things like paper manufacturing or printing costs. That means less money is spent on producing and distributing physical currency, which means lower prices for everyone! For example, if we did our grocery shopping by paying cash at the checkout line instead of swiping our debit cards (a popular method known as “card present”), we’d be spending more than necessary because those extra costs would be passed along through higher prices at retail outlets such as supermarkets or restaurants.
- In addition to reducing their overhead costs by eliminating these expenses entirely when accepting payments electronically rather than physically (which saves businesses money), many merchants also offer discounts on goods purchased via tapping into their smartphone’s screen rather than paying with traditional bills printed out specifically designed just like real ones—so now not only do they get paid faster because it doesn’t take long before you receive confirmation notifications sent back immediately after completing transactions online; but also now thanks to technology being used so widely today that makes life easier all around us everywhere you go!
Types of Digital transactions
With cash becoming less and less popular, it’s time to explore some of the many ways you can use your credit card, debit card, online banking or mobile banking (or even Paypal) instead.
There are actually hundreds of different types of digital transactions that are available today. Here are just a few:
Credit cards – these plastic cards allow you to make purchases by paying off the balance later. You’ll need good credit in order to get one! Debit Cards – these plastic cards allow you to pay for goods and services directly from your bank account without having to wait for your funds to clear first.
Online Banking – log into your financial institution’s website and access all your transaction information here — including balances and payments due.
Mobile Banking – download an app from either Apple or Google Play Store onto your smartphone so that all banking activities can be done on-the-go with ease! PayPal – an online payment system where users can send money back and forth instantly around the globe securely through encrypted channels known as cryptocurrency wallets which store digital currency like Bitcoin (BTC), Ethereum (ETH) etc…
Cryptocurrency Exchanges – places where cryptocurrencies like Bitcoin or Ethereum can be bought/sold using fiat currencies such as USD so users can convert their holdings into usable value such as profit margin gains when trading between different pairs during volatile periods in order
Benefits of Digital transactions
In a world where everything is digital, your money doesn’t have to be. Cash offers many benefits and remains an important part of our lives.
- Convenience: With cash, you can pay for things when and where you want to. There’s no need to queue at the ATM or wait for a cheque to clear—you can simply pay instantly with cash in any situation that requires it.
- Security: Cash is less vulnerable than electronic payment methods because it’s impossible for someone else to access your funds without having physical possession of the note or coin itself (and even then, they’d still need some sort of sophisticated scanning technology).
- Time-saving: One of the main reasons people dislike using cards is because they’re slow and inconvenient—especially if there are long queues at checkouts! With cash payments, there’s no waiting around while waiting for staff complete each transaction separately; instead, everyone gets served simultaneously which means no one has their shopping experience ruined by slow service times! This also means fewer opportunities for mistakes too!
Cash Vs Digital transaction
Despite the many benefits of electronic payments, cash remains the most popular way for people to make transactions. According to a study conducted by Mastercard, credit and debit cards accounted for only 40% of payments globally in 2017. Cash still dominates in terms of volume and value as it made up 56% and 62%, respectively.
The reasons why cash is still so popular are probably familiar to you: it’s simple; it’s fast; you know where your money is at all times; it doesn’t require an internet connection or electricity supply; its value can’t be hacked like those stored on your computer or smartphone; there are no transaction fees associated with using it (unless you count ATM fees); there’s no need to install an app on your phone card reader… You get the picture!
Future of cash currency
There are some people who are not comfortable with digital payments and would prefer to use cash. For example, you might want to go on a shopping spree at the mall and buy some clothes for your kids, but if you do not have a credit card or debit card, you will need to go through the trouble of paying in cash.
This could take more than 30 minutes if there is a long queue and you don’t want to wait that long. To avoid this hassle, people may still use cash even when they have access to digital payment methods.
There are also countries where there is no access to the internet (for example developing countries). In such cases people cannot make online transactions using their smartphones or computers, so they might continue using physical currency as their primary means of payment despite having other options available at hand
Although most countries are still using cash currency, it’s slowly going to be replaced with digital payment methods.
People are still using cash in all countries around the world. However, it’s less common than it used to be, and the number of people who prefer to use digital methods is growing every day.
Cash is still king for many people because it’s simple, secure, and convenient—but these features don’t come without some drawbacks. In fact, there are a number of reasons why you should consider stepping up your payment game with a digital wallet:
- Digital payments are more secure than cash because they’re less likely to be lost or stolen. You can also set up notifications on your phone if someone tries to access your account without permission and block their attempts before they happen!
- Digital payments are more convenient than cash because you can pay instantly with just a few clicks or swipes on your phone instead of waiting for change or counting out bills at the store counter (and then having them cost you more). Plus, if you shop online regularly this makes things even easier since e-commerce stores offer free shipping when there’s something small left over from an order that hasn’t been paid off yet (which happens sometimes…don’t lie!).
- Digital payments are more efficient than cash because they allow us all time savings while also reducing air pollution caused by transportation costs associated with transporting paper money across oceans/countries –therefore making our planet safer too!
Conclusion
Cash has been in use for thousands of years, but it is becoming less and less necessary as the world evolves.
It’s much easier than ever before to deal with payments and money transfers using other methods. Not only that – cash transactions are riskier than electronic payments as there is a higher chance of theft.
While cash may still be useful in certain situations, it isn’t needed as much as it once was. Although this view will probably lead to some friction with people still used to dealing with physical money,
so long as these issues are considered carefully, we can make the move towards a cashless society easier for everyone involved in this exciting time for humanity.
Also Read : –Â 10 Money Problems That Hold People Back
