The use of cash when making payments is declining around the world. In the USA, for example, more than 190 billion worth of payments were through means other than cash, as of 2019. This is highlighted by a report by Statista, which includes governments, private sector companies, and other organizations that seek to accelerate the transition from effective payments to electronic transactions.
While the picture puts the United States as a country with a ‘light’ use of cash, when comparing the number of transactions and not the amounts of them, it is clear that there are many consumers who yet prefer to use the cash in their day to day purchases.
Cash does remain the most used payment instrument by the general public to carry out their transactions. This is so for various reasons, including its convenience and apparent low relative costs of use compared to alternative payment instruments.
The use of cash has a series of costs that are not evident. Some of them are the so-called ‘social costs’, which include phenomena such as tax evasion, money laundering or the same cost of transport and storage of money.
On the other hand, going cashless means choosing alternative payment methods. Credit/debit cards have been far popular, and cryptocurrency does not seem practical for everyone, which is why users can turn towards other sources. One such remains the Swiss payment system called Perfect Money. It is developed by Perfect Money Finance Corporation and is an electronic payment system, exempting users from paying via cash or credit/debit cards. It promises secure and completely cashless payments over the internet, adding to a real benefit in terms of convenience and security for consumers.
Using Perfect Money, a user can simply make transactions like debit or credit of funds, online payments on e-commerce platforms, and even purchase cryptocurrency and other currencies like the USD, EUR, etc. It requires a user to sign up with Perfect Money, and for now, three categories of membership are offered: Normal, Premium, and Partner.
With that being said, let’s explain five of the reasons why you should avoid using cash.
Higher costs for shops and entrepreneurs
Handling cash carries certain additional expenses for businesses and businesses. Among the risks to which commercial establishments are exposed are counterfeit, theft, and robbery. As a consequence, costly security measures are generally installed, such as surveillance cameras and security guards, security vaults for storage, safety safes and cash registers, and investment in training to detect counterfeiting.
You cannot control your expenses effectively
Having a financial life in order is increasingly important for many people. Proof of this is the different applications and services through which you can track daily expenses.
This tracking is much simpler if cash is not used. Why? If we go to the movies or to eat, the vouchers of the transactions, we make arrive directly to our emails or through text messages. This information can be used automatically so that certain applications keep track of our expenses.
In the case of cash transactions, it is necessary that we keep the proof of purchase and enter the information manually to our record, either in an application or through a simple spreadsheet.
Access to the financial system is necessary for any person or business. Whether to acquire a property or expand a business, if you do not have the resources, the most feasible is to obtain them through financial entities.
A survey conducted by the World Bank indicates that many companies face difficulties in obtaining basic financial services and credit services. These barriers, according to the survey, are correlated with high levels of financial exclusion, as they are measured by the relationship they have with a formally recognized financial institution.
The security when making transactions with cash is a daily concern of those who handle high sums of money. This is undoubtedly a compelling reason to discourage the use of paper money and replace it with electronic transactions.