Cashless Transactions

Systems and Services

Group 4
Introduction
The advancement of information technology has
facilitated innovation in electronic payment where
goods and services are traded without the use of
physical cash. A cashless payment eliminates the usage
of money as a medium of exchange for goods and
services by allowing electronic transfer payments or
non-electronic payment via cheques. Adopting cashless
payment has numerous advantages. Unlike traditional
cash transaction, cashless payments discourage robbery
and other cash related crimes (Armey et al. 2014).
Definition
A cashless transaction refers to an economic
setting whereby goods and services are
transacted without cash (Paul and Friday 2012),
either through electronic transfer or cheque
payment.
Advantages and Disadvantages
Advantages Disadvantages
 Convenience  Exposes your personal
 Discounts information to a possible data
breach
 Tracking spends  No alternative source of
 Budget discipline money in the case of technical
 Lower risk issues or hacker activity
 Small gains.  Technological learning curve
 Lack of control over spending
without a physical reminder
Benefits
Your money is safe
Your money grows
Better money management
Flexibility
Types
Bank cards
Mobile wallets
QR codes
Contactless payments
Terminals
 Impact
Among 10 countries in the Asia-Pacific region, the Philippines
saw the most remarkable change in e-cash adaptation during this
pandemic.
A survey conducted by research agency YouGov for
international cyber security firm Kaspersky showed that before
COVID-19, Filipino working professionals had the lowest use of
digital payment methods at 63% among 10 countries in the Asia-
Pacific region that were surveyed. The average in the region was
85%. When the pandemic kicked in, the Philippines registered
the highest number of first-time users of digital payment
methods at 37%. The average in the region is 15%.
The Philippines is followed by India (23%), Australia (15%),
Vietnam (14%), Indonesia and Thailand (both 13%) and
Singapore (11%)
 Effects
Individual effect
Digital payments do not only indicate a change
in the method through which we perform our
transactions; the cashless effect means that digitized
transactions cause us to change our spending habits.
We are much looser with our money when it only
exists in an evasive digital form, and often spend
money that we wouldn’t if we had to make the same
transaction with physical cash.
 Effects
Systematic effect
Essentially, most of the developed world now
operates in a “cashless society”. While cashless
societies have always existed, in terms of trading
commodities instead of cash, in recent years, the
term has taken on a new meaning. Our trading is
almost entirely digital, with money only ever
‘passing hands’ through the Internet.1 Bitcoin is the
most recent evolution of our turn towards being
totally cashless.
Conclusion
In the past, cash was king. These days, cashless payments
have been gaining a lot of popularity, and for good reason.
The pros of going cashless usually outweigh the cons because
it increases convenience for customers and saves companies
time and money.
If time efficiency is important to you, consider going
cashless. Digital payments can be processed more quickly
than traditional forms of payment, which helps reduce wait
times at checkout counters and allows employees to spend
less time counting money.
There are many benefits you can get from going cashless in
your business so it's worth starting your journey with it today.
The tips above will give you a strong foundation to begin.
Thank You