India is set to achieve the highest number of cashless transactions globally, with digital transactions ensuring secure delivery of schemes. _EAM S. Jaishankar
Speaking at the 'Raisina@Sydney' Business Breakfast, EAM S. Jaishankar claimed that India is set to achieve the highest number of cashless transactions globally, with digital transactions ensuring secure delivery of schemes. He highlighted, digital governance has become the primary means for socioeconomic delivery, which wouldn't have been possible without opening bank accounts for a vast number of people.
Cashless Transactions
In recent years, the use of cashless transactions has grown exponentially, with more people using digital methods to pay for goods and services. Cashless transactions refer to any type of transaction that does not involve the use of physical cash. Instead, electronic means such as credit or debit cards, mobile wallets, and online banking are used to make payments. The trend towards cashless transactions has been driven by several factors, including convenience, security, and increased access to technology.
Types of Cashless Transactions
There are several types of cashless transactions, including:
- Credit and Debit Cards: Credit and debit cards are the most common forms of cashless transactions. They are easy to use, and most merchants accept them.
- Mobile Payments: Mobile payments are becoming increasingly popular, and they involve using a smartphone to make payments. Mobile payments can be made using apps like Google Pay, Apple Pay, or Samsung Pay.
- Online Payments: Online payments allow users to pay for goods and services online. They are commonly used for e-commerce transactions.
- Contactless Payments: Contactless payments involve using a card or smartphone to make a payment without the need to swipe or insert the card. Instead, the card or smartphone is simply held close to a terminal, and the payment is processed.
Benefits of Cashless Transactions
Cashless transactions have several benefits, including:
- Convenience: Cashless transactions are easy to use and can be completed quickly, making them convenient for both consumers and merchants.
- Security: Cashless transactions are more secure than cash transactions since there is no physical cash involved. This reduces the risk of theft or loss.
- Record-Keeping: Cashless transactions create a digital record of the transaction, making it easier for consumers to track their spending and for merchants to keep track of their sales.
- Increased Access: Cashless transactions can increase access to financial services, especially for people who may not have easy access to traditional banking services.
Challenges of Cashless Transactions
Despite the many benefits of cashless transactions, there are also some challenges, including:
- Digital Divide: Not everyone has access to the technology needed to use cashless transactions, which can create a digital divide.
- Security Concerns: Cashless transactions are vulnerable to security breaches, and there is always a risk of fraud or hacking.
- Fees: Some cashless transactions may come with fees that can add up over time.
As technology continues to advance, it is likely that we will see more people using cashless transactions in the future.