Experience Contactless Payment in India
Like the rest of the world, India’s brick and mortar businesses were ground to a standstill when the world was struck by COVID 19. Soon governments advised people to stay home to prevent the spread of the disease. This necessitated the need to have online shops and contactless payments. Even as the pandemic measures were eased, people still found it easy to shop at outlets that receive money online. This way, they didn’t have to touch money, which is considered to spread germs easily because so many people handle it in a short period. Receiving money online is now a necessity to run a profitable business that captures every opportunity to earn money.
Benefits of cash
Cash has been king for a long time as a result of being
User friendly
Any person can spend money without any special skill or knowledge. This is the reverse of making payments online where you have to have some knowledge of using the device or the card.
Trusted
The sellers and buyers alike trust cash. Because it’s exchanged upon purchase, every one of them contends with it.
Accessible
When the purchase heads for the shop, they have access to their money at that time. However sometimes digital money is not accessible at the time of need. This may be a result of system failure.
Some sellers are reactant to receive money online because of the charges that they incur to receive or withdraw their money. This inconveniences the buyer. However with cash, there is an assurance they will get what they want with reliability.
Using cash doesn’t require a point of sale technology, unlike when receiving payments online. Likewise the system can’t be hacked or undermined by the loss of power, cyber attack, or system failure. This creates a sense of security for the sellers and assurance for the buyers.
No exploitation
When sellers accept payment online, it also reflects on the buyer’s purchase patterns. This data may be cross-sold to third parties. However, when using cash, there is no data point that may be exploited
Cash cons
- Undeclared payments lead to tax gaps
- Money printing costs
- Safeguarding, transporting, and handling cash
Pros of accepting money online
- You don’t have to go to the ATM
- No need to worry about your safety when carrying large amounts of money
- Because sending and receiving payments is easier then the economy grows widely
- Business is generally easier
- Cashless payments make it easier for banks to supervise and do an easier job in creating economic and monetary policies
- Banks can create a better lending decision as they can easily manage credit
Even though accepting payments online ends up Leaving a trail of digital bread crumbs, it may be beneficial in the long run. The country’s tax officials will effectively monitor the economy grow. The banks and other providers may use the data to market to you tailor-made products like loans, insurance, among others.
Digital trail may be to your benefit sometimes
Some companies use your spending analytics to offer you advice on how to spend your money. This is done by showing you where you spend your money every month.
