The foundation of digital money is cash. There are benefits of using both methods of payments. As our world does have rapid changes due to technology, there are more areas that veer towards having a cashless society after digitalization takes place.
Managing your money
Nowadays, managing your money does not only mean how you manage your finances. It is also applicable to the payment methods that you decide to use. These payment methods include cash, debit card, credit card, bank fund transfer, or using a digital wallet. Digital payments can be made easily using a mobile app, a browser, or an electronic terminal. Millions of people all over the world still choose to pay using cash as they might not be equipped to make online payments nor does their payment infrastructure encourage the use of contact-less terminals and the like. In areas where the majority of people use digital money as their preferred payment method, they still keep cash for those instances when it is needed.
Needing to keep cash
People also keep cash just in case they lose control of their debit or credit cards in case of a fraudulent transaction. There are security issues that may happen when using a physical card. There are also times when the payment transaction cannot be completed at the payment terminal as the Internet connection can be down or other related problems. Hardware does break down and software also can have downtimes.
Tracking the payments
When a person uses cash, they often experience difficulty keeping track of their spending. It is possible to keep receipts yet all of these still have to be checked and computed. When using digital payments, all transactions are recorded.
Benefits of using cash
There are certain benefits to transacting by using cash. This traditional payment method is what we are familiar with. We can count money easily, but when it comes to counting a lot, it may take a lot of time when doing so manually. Even those counting machines take time. When we count cash, we might even make a mistake. Those piles of bills and stacks of coins also take up a lot of space. Digital money solves these common problems of handling cash. When we pay using cash, there is not going to be any personal information that is exchanged. Paying in cash is the preferred option of those in the underground world and illegal trade, as cash transactions are more difficult to trace.
Get to pay with ease
Cash payments cannot be made unless it is handed over. There has to be proximity for a person to give or get the money. When a person sends money online, it spans the distance in just a few minutes. The funds are sent in the exact amount, down to the last penny, without the need for counting it. All transactions are recorded with details such as the time sent and who it was sent to. As much as we still might have a need to use cash, digital money makes it possible to pay with ease.