Mechanisms of Cashless Payments and its Positive Impacts on Individuals and Societies

Abstract

The world is witnessing a radical shift towards the digital economy. The importance of cash is gradually declining in favor of various non-cash payment methods.

 These methods have contributed to facilitating financial transactions, accelerating the pace of business, and increasing economic productivity. However, such methods face challenges to be addressed, such as security concerns related to electronic fraud and cyber intrusions and the need to develop the technological infrastructure in some regions. One of these challenges is also the disparity in the level of awareness regarding the importance of these methods among segments of society.

To overcome these challenges, it is necessary to develop secure and efficient payment systems, avail the necessary infrastructure to expand the use of these systems, tailor large-scale awareness programs to familiarize the public with the advantages of electronic payment and how to use it safely. In addition, governments should develop clear legislation to protect the rights of consumers and ensure fair competition in the electronic payment market.

It is expected that the future will witness further developments in the field of cashless payment, especially with the advent of modern technologies, the emergence of multiple payment platforms on the internet, the use of mobile phones by everyone to pay and fulfill financial obligations, and finally the emergence of digital banks that will revolutionize the way financial transactions are completed.