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Are Cashless Economies Making It Difficult for You to Save Money? 

Throughout the world, people are happy that they no longer have to carry cash around when they go shopping. This is because they have access to cashless facilities. However, quite a few people have complained they are finding it difficult to save money because of the ease they have in using their finances.

Where have we come from?

Earlier, cashless economyshopping was a task by itself as people had to visit the market for the items they needed, go through the hassles of loading their wallets with cash and also keep a close tab on their expenditure. Things are a far cry from the methods that were used earlier when just cash, credit cards or debit cards were being used. The difference which is currently witnessed is in the form of technology, which has given people the ability to shop for items from the comfort of their homes or offices while having the material purchased delivered at the address provided. 

Who’s responsible?

A significant portion of the credit for the changes should be given to governments of various countries who have decided that the time has now arrived to put behind the ancient method of exchanging cash during purchases. The methods adopted by governments have even made credit cards and debit cards obsolete. They have ushered in Apps,  which are promoted by cell phone companies for the benefit of people who intend to shop for products. Some of these apps provide a link to users’ bank accounts.

The apps promoted by cell phone companies along with their partners require people to install the application in one of their devices, create an account themselves and connect their bank account to the app to avail the convenience of shopping. The method has gained prominence because it does not require the individual to go through the various difficulties involved when shopping. They avail the option of completing the entire procedure even when one is on the move. A few clicks on the cell phone will not only help them complete their shopping but will also have the products delivered to their doorstep along with various offers.


Mobile banking

The offers provided by mobile apps have certainly made it easy for people to shop around without difficulties. However, they have also opened up the possibilities of individuals extending themselves to a point where they are losing count on the money they have in their accounts. People have begun indulging in impulsive shopping, just as they did when the concept of the credit cards was initially introduced. For some reason, people seem to forget that they have no access to credit whatsoever with the mobile apps. The option of shopping with the help of cell phones is certainly convenient and is similar to making online purchases. Unfortunately, it has also made people susceptible to impulsive spending, which is perhaps creating difficulties for them to leave aside the money they have saved within their accounts. 

“The market economy is very good at wealth creation but not perfect at all about wealth distribution.”— Jonathan Sacks


Why so?

Why are people indulging in such behavior? What are the compelling reasons that are prohibiting people to indulge in actions like these? Let us consider the following factors which we believe could be valid reasons: 

  • The ease of shopping combined with making payments without difficulties. 
  • Various offers being made by retailers in an attempt to lure shoppers. 
  • The convenience of having goods delivered to shoppers addresses. 
  • The ability to stay away from cash and credit or debit card transactions. 
“The way to turn our economy around is not by making rich people poorer, it’s by making poor people richer.” Marco Rubio

Cashless methods of shopping are here to stay and are not likely to witness a decline anytime soon. With major cell phone manufacturers developing new apps for the convenience of their customers, this trend is simply expected to expand further. Governments of different countries are as well supporting these methods because it reduces the demand for cash. 

Who Gains?

The developers of the apps and their partners are benefiting from the small charges they are levying on their customers. Governments also have an advantage because they are not required to print a high number of currency bills. Therefore, these parties would consider it great to have cashless economies because of the distinct benefits it provides them. However, it has left people with some concerns because they are unable or are finding it difficult to save the highly essential resources which they are spending on nonessential products.

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