Cashless transactions have become very popular in recent time. Such transactions entail the use of an account that contains money you have added previously. It helps you to take care of payments immediately. Today there are many online wallets out there as well as an assortment of card-based payment options that can be used.
In fact, cashless transactions have become especially desired in many countries. This is especially the case in India where some monetary notes were suddenly taken off the market due to laundering and corruption issues.
Cashless transactions are great for many reasons:
- They make it easier for people to move money between countries. Cashless transactions can be transferred with automatic currency exchange functions if needed.
- This also helps to get money moved immediately. There’s no need to worry about funds being certified or confirmed, a process that often takes a while.
- It is also a secure option. There’s no need to send bank account information or credit card data to anyone. All that is required is a proper account with a cashless money service to get money sent out.
- The risk of fraud is also eliminated thanks to cashless transactions. This comes as such transactions are easy to prepare without the risk of fake money being transferred.
Top 10 Cashless Countries In the World
1. Singapore – 61 percent
The culture of Singapore has focused heavily on technology over the years. This is different from other countries where ATMs are prevalent. The government has especially helped to encourage cashless transactions around the city-state. National ID numbers are also being used to send money to bank accounts rather than traditional bank account numbers, thus improving upon how secure such payments are.
2. Netherlands – 60 percent
The Netherlands has long been known for being a country where people often act differently. The efforts by the government to promote cashless transactions have been strong. The Schiphol airport in Amsterdam is especially a popular place for cashless functions. Most high-value items like rent payments are also made with cashless systems.
3. France – 59 percent
Contact-less payments are becoming more popular in France. This allows people to use a card or phone to take care of small payments without having to enter a PIN. Digital wallets are also popular around the country. In fact, cash payments of €1,000 or higher are outlawed in France as the country is aiming to get high-value transactions handled in a cashless manner.
4. Sweden – 59 percent
Many of the largest banks in Sweden no longer deal with physical cash. Many street stalls take online wallet or credit card transactions only. It is big part of why 59 percent of transactions are online or cashless. Mobile transactions are especially easy to work with in many parts of Sweden.
5. Canada – 57 percent
The Canadian government does not take cash payments for many charges anymore. Nearly three-quarters of transactions are handled by credit card with a vast number handled through online wallets. The Interac system has also become popular around the country. It allows people to make payments through debit cards throughout the entire country.
6. Belgium – 56 percent
The Belgian government has established limits on how big cash-based payments can be around the country. This is to establish a cashless and online payment society. Cash payments of €3,000 are prohibited and all cash payments are not allowed when taking care of real estate investments.
7. United Kingdom – 52 percent
It is estimated that a typical person in the UK has less than twenty pounds in physical money on hand. In fact, buses in London no longer take physical cash. Whether the UK will eliminate money altogether in the future is uncertain. The Paym mobile payment system is the most popular solution available in the country.
8. United States – 45 percent
In addition to online wallets, NFC payments are becoming commonplace in the United States. This is where people can use their phones linked to proper accounts to pay off different transactions at many points of sale all around the country. The development of chip-based debit cards has especially helped to bring about a cashless society.
9. Australia – 35 percent
Credit card companies have been testing many quick-pay services around Australia over the years. These include contact-free payment systems that improve upon how well transactions may be used. In fact, contact-free payments have become popular in the debit card world around Australia, thus keeping personal data from having to be shared.
10. Germany – 33 percent
Online wallets are a key part of what is causing Germany to go cashless. PayPal has especially become an essential system in Germany. The online wallet allows for fast transactions and has spawned various competitors all around Germany.