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Shift from Cash to Cashless: Is Society ready?

By Rohit Prasad, Managing Director & Co Founder, Easebuzz
November 8 2021: We have been using the concept of currency for many centuries now. But it has never been the same. The form of currency being used has always been different over the years. In this ever-changing world of technological advancements, where phones and computers are a major part of human lives, digital transactions are becoming very popular. These improvements in science and technology are not only making life very easy for us, but also helping us progress towards a better future.
Traditionally, cash has been an integral part of the world economy and we have continued to use it after all these years. Considering the countless number of transactions per day in a country, it would be much more efficient in terms of documentation and transparency to be able to track all the transactions. Cash transactions cannot be monitored effectively and lead to various problems. Corruption & money laundering are some of the problems arising through cash transactions.
The Indian government announced the demonetization of all Series 500 and 1000 banknotes in November 2016. In exchange for the demonetized banknotes, it also announced the issue of the new 500 and 2,000 banknotes. This resulted in a positive impact on the Indian economy. This can be considered a stepping stone for all the major changes from cash to cashless transactions in India. 
The growth of the fintech industry has helped small players and people to compete on the same ground as traditional banks and financial institutions. While also paving the way for new digital reforms, they allow businesses to compete on the same level as large banks and financial institutions. This incorporates the cashless concept among society and gives a sense of a secured and reliable form of transactions. The cashless transaction through online payment not only guarantees more manageable payments across the nation but also efficiently keeps up with the pace of evolving society.
This drastic change from offline to online business has educated people to take charge of their finances, especially in the rural areas, to function at an optimal level.  At a time when cash is becoming a barrier, financial transactions and online payments are becoming the new norm. In the last decade, there has been a prodigious growth in the acquisition and expediting online transactions across sectors. As various industries across continents are pushing for a digital payment-led economy to ensure better transparency and high-end speed on every front, it is now time for us to make a major upgrade in the way we make our transactions. Moreover, for businesses to stay relevant and compete globally, there is a dire need to go cashless and focus on online modes of payment. 
This importance of using cashless payments became clear during the outbreak of the unfortunate Covid-19 pandemic that created a major shift towards online payment service amongst people in the Indian market aligning with  the Prime Minister’s vision to create a Digital India.  According to the National Payments Corporation of India (NPCI) data, payments on UPI had hit an all-time high of 1.34 billion in terms of volume with transactions worth nearly Rs 2.62 lakh crore in June 2021.
This led to an increased rate of development in the Fintech industry within India which drove every consumer to take up a cashless mode of payments and have more efficient transactions under their control.  This has helped consumers understand financial literacy.  Leveraging the accelerated internet connectivity across major sectors has successfully transitioned to online forms of banking and smooth transactions of the cashless environment in all global business sectors.  Among many prominent sectors, the financial service sector has witnessed extraordinary growth. With these developments, the fintech sector has incorporated modular technology, user-friendly mobile and web applications to increase the number of digital transactions for the safe and smooth transfer of funds.
Moving towards a cashless economy in India paves a way for a better future. With the implementation of this new system for transactions, the practice of circulation of fake currency, money laundering for nefarious activities can be completely eliminated. This makes it almost impossible to sustain black economies or underground markets that are often proven to be damaging the national economy. All these changes will bring better transparency, scalability and accountability, hence making it convenient and resulting in improved payment efficiency.
Easebuzz is a software platform enabled with value-added services, providing  a full-stack online payment collection with easy-to-use API based SaaS solutions  for  small businesses and startups