How can cashless transactions helps an economy to save a money in cashless economy
Cashless economy is type of economic which deals with transaction without using cash. Cashless economy work totally virtually and no use hard cash required. Government of a country can save money in cashless economy. Cashless economy infrastructure are build on online platform working.
Cashless transaction helps an economic development of a country because cashless economy transaction are done high speed and economic transaction can be done from any part of world.
In cashless economy consumers can save money in following ways like consumer don't have to pay extra money in not having small currency cash notes.
Consumer get price relaxation on doing cashless transaction in form discount offers provided by various branded companies and many government of country also giving service tax relaxation on online transaction.
Cashless economy help to eliminate corporate fraud impact on economy of a country. Every process adopted in cashless economy are informative and transparent.
Government of many countries motivating their nation population to use cashless economy during covid-19 pandemic and continuously building cashless infrastructure inside their country. Government of a country save money in cashless economy because government of a country can make full use benefits of cashless transactions which results in donot have to spend more money in printing of currency notes.
We all knew that printed note of currency on paper have perishable time period and after sometime of use currency note get destroyed.
Cashless economy don't require any such printing of note because currency value converted into digital form.
Impact of modern culture impact on consumer behaviour increasing in form of cashless economy. Modern culture believe in saving money and time. Time and to save money only possible in cashless economy. It is a part of consumer behaviour to get maximum level of satisfaction in form of utility after consumption of goods and services at least cost spending.
Cashless economy infrastructure play an important role in economy growth in a country. For example cashless infrastructure used like in united states are Apple pay, samsung pay, in India cashless infrastructure setup like Google pay, phone pay and paytm etc and in China cashless economy infrastructure build.
How can cashless economy can be improved
Cashless considered as more secured and transparent way of economic transaction. Cashless economy can help to track any financial transaction path without hidden steps.
Electronic payment and financial inclusion needed to regulated and strengthen to brought more confidence of people in cashless economy.
Cashless can be improved by taking certain initiative such as faster dispute resolution scheme, licencing schemes and free cap helped in boosting up cashless economy resulted in saving money in cashless economy.
Cashless economy eliminate black marketing activities from market and ilegal activities get totally managed.
Black money and hidden middle men get thrown out from marketing economic activities. This will result in smoothly functioning of market financial activities.
Economy development of a country totally dependent upon how well country market functioning inside country. If country inside market functioning well then a country economy development will be fast.
What are the benefits of cashless economy to save money in cashless economy
Cashless economy now become new fast methods of doing financial transactions after covid-19 pandemic. There are lots of benefits of to save money in cashless economy for the economic development of a country.
Here are the some benifits of using cashless economy and pitfalls everyone should be aware. After worldwide spread of covid-19 pandemic peoples of many developing countries started taking benifits of cashless economy more seriously specially countries like India, Pakistan, Nepal, and etc moves towards becoming part of cashless economy. Developing countries like India after demonetization in 2016 government of India started focused on building infrastructure of cashless economy.
Lets take help of an example to understand importance of cashless economy in economy development. Peoples get finance easily in cashless economy because all documents already available online and verification of documents very fast which results in getting finance very fast.
Two benifits of cashless payment considered in cashless economy for economic development of a country such as
- Cashless payment eliminate all illegal activities from marketing activities. Transparency maintained in cashless payment and no hidden extra payment charged and more people come under taxes and become tax payers which increases country revenues.
- Cashless payment brought speed in financial transactions for buying and selling of goods and services. Cashless payment give facility of carrying money in virtual form.
Role of infrastructure play an important role in economic development of a country. Infrastructures build in India like online payment platform such as Paytm, Google pay, Phone pay, QR code scanner and etc.
Cashless economy advantages and disadvantages
Mainly 5 advantages of cashless economy like no forged currency, transparent system, limited fraud, effortless payment and easy international payments.
There are mainly 6 disadvantages of cashless economy like low literacy rate, identity fraud, chances of corruption, economic disparity, cyber crime and over spending.
Importance of cashless economy in India
After covid-19 pandemic strick in India, central government of India feel requirements and importance of cashless economy in India for doing people to people contactless financial transaction. Covid-19 pandemic changed way of economic activities done inside market of country and with foreign trading countries for doing export and import of commodities and services.
Government of country have to spend lot in printing currency notes. Printed currency on paper got destroyed after some time and required always to print again same value notes. Government of a country save money in cashless economy in thousands of dollars by promoting cashless transaction.
Cashless transaction done in digital form. Digital transaction don't use paper currency which helps to save money in cashless economy.
Indian government realise requirements and demand of peoples of a country. Rural and urban population of India now started to move toward total cashless. Government of India started to provide infrastructure for every individual living in India. Building infrastructure to run cashless economy efficiently provide motivation to consumers of India to become cashless economy.
Importance of cashless economy can be clearly seen in bringing larger population under taxes paying zone. Cashless economy importance for eliminations of black money from India marketing activities.
India is third largest country in consisting of high purchasing power. Cashless economy bring faster economic transaction.
Covid-19 pandemic spread can be can controlled by keeping distance between peoples to people. Government of India to increase people participation in cashless economy, it brings lots of freebies on doing cashless transaction and larger in quantity discounts offers.
There are seven advantages to save money in cashless economy such as convenience, discounts, tracking transaction spend, budget disciplines, low risk, small gains.
How save our money in cashless economy
70 percentage of India population think that there money is not secure and always have threat of loosing money. Indian population shown their concern in front of government.
Government of India building infrastructure for cashless economy to provide security to country population hard earned money while doing cashless transaction.
Convenience to save money in cashless economy
After strike of covid-19 pandemic and increasing globalisation made requirements for all peoples of do their financial transactions in faster speed and contact less transaction increasing day by day.
Faster speed of financial transactions in cashless economy act as major motivator to get adopted and become part of cashless economy. Modern world consumers like speed in economic transaction because every people of world become more competitive and want to spend less time in economic transaction.
Major advantages of going completely cashless economy provide convenience like peoples of don't have to carry heavy wallet, plastic card like debit card and credit card use become less, and people don't have to stand in line outside ATM cash machine.
Other advantages of convience received by peoples in cashless economy like cashless major advantage clearly seen when people use online payment for paying bills of restaurants, hospitals, and any institutions etc.
Peoples get convenience in cash less economy to save money and time. Peoples have convenience like have freedom of doing buying and selling totally online.
Peoples don't required to present present physical for doing financial transactions.
Peoples get ease in doing financial transactions in cashless economy which helps to save money in cashless economy.
Discount role in cashless transaction to save money
Government of many country of the world provide service tax relaxation on doing cashless transaction for buying and selling of products and services.
For study purpose let's take help of an example to understand discount role in cashless economy to save money. Suppose United States government given service tax relaxation of about 0.5 percentage on all types of online transaction.
Services tax relaxation given by government encourage country population to become total cashless economy. Any body can save money by taking full advantage of discount provided on doing cashless transaction.
Many branded companies all over the world kept bringing discount offers in front of their expected customers.
Customers always attract towards discount offers because customers always looking for saving money. Discount play an important role to save money in cashless economy of customers inside market of a country.
Tracking spends to save money in cashless economy
Cashless economy work on total online platform such as using apps like Google pay, amazon pay, phone pay, paytm and etc all over world. In online economic activities all records are kept stored systematic way and any one can check any date online transaction done.
Consumer use tracking spends to save money in cashless economy. Tracking spends helps online payment users to track all his online transaction activities and help to track any ilegal transaction happened.
Many times peoples doesn't know all transactions details which results in money lose to many peoples. To eliminate money lose online transaction helps to save money in cashless economy by keeping systematic financial transactions records.
Budget disciplines meaning to save money in cashless economy
Budget disciplines can be maintained in cashless economy to save money in cashless economy because nicely designed and organized budget helpful in keeping complete records of types of financial transactions going to happening in next coming financial year.
To save money in cashless economy budget disciplines used to keep all records of financial transactions happened in financial year and these records can be used for doing accounting of a buisness and making next financial year budget.
Cashless economy brings budget disciplines in economic activities happening inside market. All online payment apps keeping records of all economic transaction records in disciplined manner.
Anybody can check all financial transactions in systematic manner and prepare budget for next financial year. Discipline budget help finance department peoples or finance minister to get proper record of all types of financial transactions.
Budget term used in economics to make forcast all spending and earning generating path for the upcoming financial year for a particular country, company and institutions etc.