As the title suggests, a cashless economy is over the top powerful as it provides numerous benefits to the citizens of a country.
Be it expanding the business, opening a new one or functioning as a buyer, the method of making transactions is the major deciding factor about success.
For India and its citizens, shifting from a “cash” dominated mind-set to the “less cash” one has been challenging yet fruitful.
An economy on its way to complete development requires more than just adapting to the changing trends of the world.
It implies that, for changing the economy of a country like India, there needs to be a widespread awareness of the beneficial impacts of the same.
Moreover, apart from the awareness, any changes brought in the impactful industries need to be accessible to the laymen for them to start making maximum use of the same.
Now gradually, India has moved toward becoming cash less economy from being less cash and it has proven to be in the favor of country’s growth.
With more & more tech-savvy youth opting to start their own business, digital payments/cashless transactions are becoming even more common in the country.
And with this, as the country is treading toward Digital India, the economy is becoming more and more powerful. There are these following ways in which digital or cashless economy shifts a country towards more progress:
One, with the emergence of and adaptation to cashless economy, corruption in the system is being reduced drastically.
With less cash in circulation, government is able to keep tabs on the digital payments and thus, in this manner, any illegitimate transaction does not go unaccounted for.
This practice saves the country’s growth from being hampered and rather, leads it toward betterment.
Two, the ones wanting to expand the business can get an easy access to loans with their past record of transactions done digitally.
This implies that an individual, despite having a business, cannot get the access to loan if the past transactions were done in cash and have no record in the formal financial framework.
Three, it keeps the arena of terrorism from being funded as the illegitimate activities cannot be funded via an online platform.
With tightly secured platforms, it becomes near to impossible to let any cyber crime take a toll on the society and thus, prevents money laundering from affecting the economy as a whole.
Four, digital transactions help entrepreneurs in several ways. The entrepreneurs that take digital route for making transactions make their business transactions secure, quick and convenient.
Transactions done via online platform, on a daily basis, help these entrepreneurs become a vital part of the growing economy.
With so many incentives available for masses from government’s end, the entrepreneurs benefit the most as individuals become highly inclined toward buying online.
Five, with the history of transactions being available, digital payments help one understand unnecessary expenditures that can be avoided.
This psychological and practical phenomenon further helps in increasing investments as the money saved can be invested and can reap more profits for the individual.
This helps in overall shift of the economy toward becoming more developed.
Six, Digital transaction contribute to women entrepreneur’s progress by keeping their business transactions quick and convenient without them needing to go to banks or ATM that may be far and unsafe to travel to.
The payments made digitally keep progressive and ambitious women from going through lot of hassle especially when there are several social norms prevalent in the society.
Moreover, because of various family related obligations as well, many ambitious and talented women find immense comfort in handling transactions on their gadgets.
Seven, with the online services, the demand as well as cost of maintaining physical stores go down significantly.
This helps both the customers as well as the entrepreneurs alike, since, reduced cost means reduced charges for the services/goods sold.
Hence, customers end up paying much lesser a price for the service/good purchased and get benefited. Not only do the customers benefit in monetary terms but also in terms of time spent since the time spent in traveling to a physical store gets saved.
This time saved can be utilized in other aspects that the business may be needing a check into. The growth of an entrepreneur directly ups the status of the economy and the country alike.
Eight, customer base in farther areas are taken care of when there is an availability of making payments digitally.
If a service provider wants to sell its services to the customer base located in far off places, he/she can do so with the digital payments easily.
This ease with shopping portal and access to digital payments tremendously help the country be even more successful with more sales as well safe and quick transactions.