The Shift to Cashless Payments in a Digital Society

Published: 02/04/24

On this page:

▸ Digital payment solutions: What are they?

▸ How virtual and prepaid cards fit into a cashless society

▸ The benefits of a cashless society

▸ The future of payments with Getsby

It seems incredible that up until the mid-1990s, eCommerce was a distant dream. Since then, society has embraced the convenience of online transactions, as consumers everywhere adapted to a digital society.

Technological advances mean people no longer have to line up at ATMs or carry cash to make purchases, and cashless payments are fast becoming the norm.

According to The Guardian, 6% of all payments will be made with cash by 2032, leaving many worrying about older generations who might be unable to manage these changes.

However, there are many reasons to move towards a cashless society; we’ll explore them in more detail in this guide. But first, we’ll look at digital payments and what they entail.

Digital payment solutions: What are they?

Digital payment solutions are an umbrella term for various payment and money management methods that don’t require physical cash. Each enables consumers to make electronic payments and monitor their spending.

The most popular digital payment solutions include:

• Credit and Debit Cards: Perhaps the most widely available form of digital payments, these cards allow you to make online and in-store transactions. While transactions used to require a PIN, many payments are contactless today.
• Online Banking: Gone are the days of endless bank queues because people can manage their money online now, including transferring money, making transactions and monitoring spending.
• Mobile Payments: Google Pay and Apple Pay are two apps that enable smartphone owners to make payments. These apps use Near Field Communication (NFC) for contactless transactions.
• Digital Wallets: PayPal and Cash App are forms of digital wallets that allow consumers to store money, pay for purchases and transfer funds.
• QR Codes: Another popular way to make contactless payments is through QR codes, which store account details and facilitate secure payments.
• Cryptocurrency: Ethereum and Bitcoin are forms of cryptocurrency that enable secure transactions by operating on blockchain networks.
• Virtual Cards: As digital versions of traditional cards, virtual solutions are often more secure as they have no physical presence.
• Prepaid Cards: Prepaid cards enable consumers to preload them, similarly to topping up a pay-and-go mobile phone.

How virtual and prepaid cards fit into a cashless society

Virtual and prepaid cards are perhaps the most exciting of all the advancements in cashless payments. These solutions are changing how people manage money, enhancing security and paving the way for a more sustainable future.

Virtual cards

Virtual cards mirror traditional cards in most ways, apart from one main difference: they have no physical form. Consumers can still use them to make in-store and online payments, but there are no risks of losing the card.

Virtual cards can have varied features, including superior security features like temporary card numbers and encryption. Most importantly, holders can make payments without compromising any information.

Prepaid cards

Prepaid cards are ideal for individuals who want to manage their money more effectively and avoid getting into debt. These cards can come in physical form, but most are versions of virtual cards, combining security with convenience.

You load money onto the card and can use it until the balance depletes. While some cards enable you to reload them, others are single-load cards, meaning you’ll need to order a new one when it runs out.

The benefits of a cashless society

While some concerns are associated with a cashless society, the pros outweigh them. From more convenience to security and accessibility benefits, let’s explore why a cashless society might be a massive leap towards the future.

Convenience

Standing in line for ATMs and waiting at the bank is increasingly challenging in an always-on society, but cashless payment solutions give people more flexibility.

Whether transferring money or making in-store purchases, a cashless society means more accessibility for everyone.

Efficiency

Cashless transactions take less time than traditional payments, enabling businesses to serve more customers.
There’s no waiting in line for change or employees taking time manually counting money; it’s just a quick way to process transactions.

Economic transformations

Nobody wants to spend ages trying to make a purchase, but technological advances mean it’s now easier than ever to shop online. Whether international or domestic transactions, smoother transactions mean more convenience for consumers.

In turn, this can facilitate business growth, resulting in a stronger economy where innovation can flourish.

Security

The most significant benefit of a cashless society is the additional security it offers. Many digital transactions have features including encryption, tokenization, and 3D Secure authentication to prevent fraud.

While there are some risks, digital records can identify crimes, allowing banks and the police to trace transactions.

Inclusion

People living in rural areas or developing countries might not have access to ATMs and banks without traveling. Mobile banking and the range of payment solutions mean people can decide what’s right for them.

Consumers can also make international transactions with ease, allowing for economic growth.

Health

While Covid-19 is no longer a significant threat to society, it showed us that pandemics can have devastating impacts and change our lives. Cashless payments reduce the risk of infection transmission, as no physical money changes hands.

The future of payments with Getsby

Getsby is redefining the meaning of a cashless society by offering everyone convenient payment and money management solutions. Our virtual cards are also prepaid solutions, giving you access to the best of both worlds.

If you’re looking for a convenient solution that will also contribute to the environment, our Virtual Green Card lasts three years and is reloadable.

The Black Card is our most secure solution, allowing holders to preload it and make multiple payments. Once the balance is depleted, it’s easy to order a new one in minutes and continue spending.

These cards are compatible with anywhere that offers Mastercard transactions and the ability to make in-store and online transactions.

There’s no need to worry about losing the card and its information, as both are virtual solutions. We’re on a mission to make money management accessible for everyone and put convenience and security first.

As society continues to move towards cashless transactions, most people will look for flexibility and ease of use. Our cards were designed to deliver on all bases.