Imagine you are time travelling to the year 2035. Standing in front of the counter, you are ready to pay 50 euros. Taking the money out of your pocket, you notice the smile on the cashier's face. All of a sudden, the people behind you start laughing. "We do not accept physical money anymore," the seller says.
You are leaving the shop on the jump. Heading to the city, you stop inside other stores, small talk with strangers, making sure you are not losing your mind. Then it hits you: it is 2035, and physical money does not exist anymore. It is the scenario that day by day becomes more probable.
The advancement of technology is pushing cash into… trash
Throughout the years, various monetary systems kept appearing, facilitating transactions. Today, the trend is accelerating. At the beginning of 2021, digital payments reported a 40% jump in two years [1]. According to many, the era of the COVID-19 pandemic additionally reinforced this pattern - e-payments have become a convenient and safe way to finalize purchases. But can they completely replace traditional money?
Over the last dozen years, electronic payment systems have undergone a revolution. Consumers have at their disposal more than just a single PayPal account. We can expect transactions via an online bank account and a payment card, HCE payments, transactions via Visa or MasterPass systems, or cryptocurrency wallets.
In the global context, Europe is the driver of the high growth in digital payments. By 2025, the European market is expected to hit the $1.95trn value. [2] Statistics show that mobile payments in European countries are forecast to surge by 67% by 2023.[3]
Is the fate of cash inevitable?
The benefits of using electronic payment methods are wide-ranging. First and foremost: convenience. The customer no longer has to carry a wallet that may become a potential target for thieves. All funds are available with a single click on a device screen.
The banks also increasingly choose e-payments. The exchange of electronic money can be easily verified, preventing money laundering attempts and minimizing the fraud risks. What is more, Internet payments get recorded on the current basis - in case of breach of law, it is easier to recover lost property.
Yet, some critics point to the dark side of e-transactions. The transfers of cash onto electronic systems subject the funds to constant control. At the same time, there is a risk of breaching system security: in that case, money and data could be easily appropriated by criminals. Like any payment method, electronic payments have their pros and cons. Who knows, maybe money will soon become just museum exhibits? It is possible but not necessarily bad news for us.
Bravelab is focused on helping traditional retail companies evolve to the next level with intuitive eCommerce solutions. Thanks to our team of skilled developers, we allow companies to implement diverse solutions at their preferred pace, like e-payments integrated with efficient ways for their customers. Explore how you can sequentially implement eCommerce options for your business, contact with our specialist.
[1] https://www.cpapracticeadvisor.com/accounting-audit/news/21208440/digital-payments-to-hit-66-trillion-in-2021-a-40-jump-in-two-years
[2] Ibid
[3] https://it-online.co.za/2021/08/26/mobile-wallet-payments-surge-set-for-more-growth/
