Over the years, a couple of things have significantly changed the way we look at money. It’s how we are paying for our purchases and how we are spending our bankroll. With the introduction of cashless transactions, liquid cash is no more a necessity in today’s world of credit and debit card machines. There is an interesting trend taking control of things at the moment, and here are a few you should acknowledge.
‘Digital Wallet’ Concept Is Still In Growing Phase
A payment gateway like PayPal has made it convenient to carry out cross-border transactions within seconds. A POS system has come as a relief for many super markets and entertainment spots to accept instant payment. However, the biggest challenge here is the alternative like crypto currencies, which is more scalable and cheap.
These days we have credit card and bank details linked to a digital wallet, along with smartphone apps to enable smooth payments. There’s still a long way to go before we have a complete digital economy.
Cultural Touch Is An Important Factor
In spite of the advanced technology, not all regional players are on the same boat. Say for instance, cashless payments in Europe are on the rise, with the use of credit cards at the helm. However, this isn’t the case for entire Europe. Most payments in places like Finland and Sweden are debit transactions rather than credit. Online banking facilities are more prominent in this part of the world.
On the other hand, the Asian region may have rising smartphone usage and online connectivity, but low credit card penetration. Some people still rely on liquid cash for day to day transactions.
Payment Methods Attract Potential Customers
According to a study, one of the reasons why people not prefer buying online on a website is non-availability of their preferred payment method. This means internet businesses and retailers will need to provide a wide array of options, including both cash and non-cash payments. But on the other side, it will also attract additional costs, which need to be accounted for. Depending upon which market you fall unto, your decision can vary.
For instance, due to poor banking network, many Southeast Asian firms still have COD (cash on delivery) option. Choosing a processor that caters to a wide range of preferences may be the deal. It all depends on cooperation in a competitive market, so that everyone can benefit.
Contradictory Solutions In Regional Markets
Due to varying trends in regional markets, there is still enough room for contradictory solutions to come into play. Asia Pacific region, where card penetration is still on the lower side is a sort of market that can benefit from non-card reliant services. As more and more banking regulations are put into practice, we can see cashless transactions getting a boost across a wide network.
There are exciting times ahead with the trend all set to continue for a long time. More people will be drawn to the ease of not carrying cash all the time. There is constant innovation going on in this space, with inventive ways to handle money, whether through a phone or your fingertips.