Contactless and Cashless Society

A cashless society refers to a society where physical cash is not used, and most financial transactions are conducted digitally. The adoption of cashless payment methods has significantly increased due to various factors such as the ongoing COVID-19 pandemic, the popularity of e-commerce, and the convenience of digital payment methods, which are expected to continue in 2023.

Figure 6. Number of non-cash transactions worldwide from 2013 to 2018, with forecasts from 2019 to 2023, by region (in billions) / Source: Statista 2023

Here are some key factors showing the trend towards a cashless society:

Introduction of digital payments: The adoption of digital payment methods such as credit cards, debit cards, mobile payments, and e-wallets has been rapidly increasing in recent years.

COVID-19 pandemic: The COVID-19 pandemic has accelerated the adoption of cashless payment methods as people become more cautious about handling physical cash due to concerns about virus transmission. Many businesses have also started to prefer contactless payment methods to minimize physical contact.

E-commerce: The growth of e-commerce has also contributed to the trend towards a cashless society. Online shopping is becoming increasingly popular, and most e-commerce transactions are made through digital payment methods.

Government encouragement: Many governments around the world are encouraging the adoption of cashless payment methods. For example, in India, the government has launched the Digital India campaign to encourage the use of digital payment methods, and in China, various initiatives are being implemented to encourage the use of mobile payment methods.

Consumer convenience: Digital payment methods offer convenience, speed, and security to consumers. Transactions can be completed quickly and easily without the need to carry physical cash or wait in long lines at banks.

Overall, the trend towards a cashless society is expected to continue for the next few years as more people adopt digital payment methods and businesses and governments continue to encourage their use. However, there are still challenges to overcome, such as ensuring financial inclusion for those who cannot use digital payment methods and addressing concerns about security and privacy.