The world has been revolving and it has also advanced in the payment systems as well. Recently, cashless or contactless transactions has become one of the most used means of payment unlike years ago. Here, we will analyze the transition phase from cash to contactless transactions.
Cash transaction:
Cash transaction is the oldest means of transactions since the olden days and it can be likened to as a traditional means of transaction. It started with the use of coins and graduated into the use of bank notes which provides a physical currency which stands as a tangible means of payment. Cash transaction is still a common means of payment now but technology has now provided a safer means of payment which can be done from anywhere and will not require physical presence first like cash transactions.
The evolution of payment systems:
With the use of our mobile devices and the internet, we have evolved in how we carry out financial transactions. Online banking, the use of Electronic wallets, debit and credit cards are becoming more commonly used in carrying out financial transactions. Customers do not have to make physical contact with those they make purchases from but rather, they may use the transfer method to pay for goods and services, make online purchases which takes place in few minutes and even pay for their bills using their phones which removes the use of cash out of the way.
Contactless Transactions:
The most recent means of payment is the use of contactless transactions for carrying out financial transactions. Contactless payment is a secure payment method using a debit or credit card, smartcard, or another payment device by using RFID technology and near-field communication. To use the system, a consumer taps the payment card near a point-of-sale terminal equipped with the technology. Users can quickly and securely carryout payments by touching their cards or mobile devices on a terminal which has been achieved due to Near Field Communication (NFC) technology. Contactless transactions has become more frequently used due to the fact that it fastens transactions and it offers a seamless user experience.
The Importance of Contactless Transactions:
Contactless transactions are beneficial to both the customers and business owners. Customers can make swift payments and comfortably use contactless payment since the need of cash, standing in queue to make payment or swiping cards to make payment has been removed. Contactless payment system has been seen as a more secured way of carrying out transactions than the previously used methods.
In years to come, contactless payment system will definitely remain a remarkable means of payment in the expansion of payment networks. In addition, payment systems like the web 3 Blockchain based payment have the tendencies to upgrade the way payments are made seeing how safe and secure they are.
Furthermore, the transition from cash to contactless means of payment shows an advancement in the field of financial development. Businesses should adopt these new technologies and make the necessary adjustments to suit customer’s taste as their taste changes with the new trends. One thing is sure to stay, payments using smartphones, contactless cards and digital wallets have come to stay.
