A new report on FinTech says a cash-free economy will be here sooner than you think. The Era of Rising FinTech, which analyzed online spending habits and digital transactions, forecasts cashless payments will outnumber cash by 2023.
That may not come as a shock. According to an Experian survey, nearly half of all Americans believe the country could go cash-free by the same date.
If you aren’t sure how you feel about this upcoming change, here’s your chance to make up your mind. There are a lot of benefits to using digital payments and other online money management tools.
Let’s investigate some of them today, so you’re ready for a cashless future.
It’s easy to track
At the outset, you may only care about how digital payments affects your ability to shop. Mobile payment apps let you tap a card or scan a barcode.
Compared to handing over bills and waiting for your change, this is a quick and easy way to pay for a latte or fill up your gas tank.
But it doesn’t just make spending your money easier. It also makes budgeting easier, too.
Unlike cash, which has no trace once you take it out of the bank, digital payments are obsessively tracked by your app, banking institution, and retailer.
This is a great feature for anyone following a budget. It makes it easier to see where your money is going at all times.
You can even sync these accounts with money management apps, so you never have to manually input information into your budget ever again.
A cash-free future has a greater impact than your shopping trips. As more financial services go online, you’ll be able to do more with your money than just spend it.
Some FinTech companies are already making it possible to borrow money without ever speaking with a bank. They offer online applications, deposits, and repayment services over an app.
These online lenders make borrowing more convenient because:
- They operate 24/7: You won’t have to wait until a branch’s opening hours to apply.
- They’re totally mobile: You don’t have to travel to a brick-and-mortar location that may be miles away from home. Instead, you can sign on wherever you get Wi-Fi.
- They’re faster: Without much of the red tape slowing down in-branch loans, online lenders can offer installment loans and other cash advances by the next business day.
In an emergency, speed and convenience are important. However, you’ll still want to confirm the rates and terms of an installment loan. These conditions will help you know when to consider getting a personal loan and when you should wait to save up for a purchase.
It’s harder to steal
Having your wallet stolen sucks. You’ll have to cancel all your cards and reissue IDs to make sure your thief can’t access your money and information.
Although it’s frustrating, it’s a relatively simple process. With a few phone calls, you can shut everything down and shut out your thief from your credit cards.
If they manage to make a purchase before you can do this, you aren’t out of luck. Most credit card companies will cover these fraudulent purchases, so you don’t have to pay for them out of pocket.
The bills and coins that fill your traditional wallet, on the other hand, are as good as gone. There’s no way to trace or put a hold on this physical cash, so you’ll lose all of it.
Anyone who’s accidentally dropped a $20 bill from their pocket knows how annoying carrying cash can be – but it may not be a problem for much longer. As more financial companies, retailers, and consumers embrace cashless alternatives, there will be less of a need to keep cash in your pocket in the first place.
Not only will this save you the frustration of losing money or having it stolen, but it will also help you keep to a budget and access convenient services online. With things like this at stake, the only problem is waiting until 2023!