Cash vs Digital Payment: The Benefits of Using Both Method of Payment

Cash vs Digital Payment: The Benefits of Using Both Method of Payment

As the world faces rapid changes in technology nowadays, people start to move towards a cashless environment after demonetisation takes place.

The fear of losing control or lost managing of credit or debit card in security breach can overwhelm the convenience of swiping card to make a purchase. Keeping cash on hand can be a different flavour of pain.

When it comes to managing money, it’s not about how you spend your money but how you choose to pay with your money.

When using cash, customers face a difficulty to track their spending and risk of being stolen. When using digital payment, even though it is easy and convenient, customers feel fear of security breaches on personal information. Even there are a few disadvantages, both method of payments have its own benefits to customers.

The benefits of paying cash:

1. No security breaches

Paying with cash protects your money and personal information from security breaches. It is because, when paying by cash, there is no personal information or details involved in the process.

The customers will hand over the cash themselves. Enough to say that there is no risk of personal data or account theft when paying with cash.

With the online-to-offline (O2O) payment that is emerging right now, it is easier for e-commerce to employ the service and let their customers to pay with cash.

 

2. No overspending

Psychologically, it is more difficult for someone to hand over cash than swiping the cards. It is due to the existent of the paper money in your wallets that make you acutely aware of how much you spent.

Paying with cash make the money that you have to be out of your sight. If consumers need to spend more, they will be required to go to ATM to withdraw some cash.

The time involved requires consumers to think twice before spending thus, it saves their money from getting over-spending. There will be no wiggle room for overspending.

 

3. Less marketing

When pay using cash, the potential of being asked about your email address or phone number is less. This will cut down some of the email marketing hence information can’t be stolen in data breach. Retailers often ask for additional information for their telemarketing. By paying cash, it can avoid any of this situation to happen.

 


The benefits of using digital payment:

1. Convenience

Using digital payment can be the biggest motivator for easy money transactions. Since it is digital, there will be no need to carry cash, cards or even queue to withdrawals money at ATM.

It can be accessed anytime and anywhere. Using digital payment also can be safer and easy. Why? Simple, because it can lessen the risk of getting stolen.

Even if your device or even your cards was stolen, it will not affect your account unless the theft is expert in hacking.

 

2. Easy to track expenses

Using digital payment can ease the user to track back their expenses. It is because digital payment will record all the user's expenditure data.

People also will have a solid proof in case of scrutiny. Digital payment can also bring a good impact for budgeting the expenses.

 

3. Attractive discounts

Sometimes, when using digital payment, user can get a lot of attractive discounts either buying online or in-store.

Some items or product will get a discount only if user buys digitally. This is one of the attractive and great benefits of using digital payments.

In order to increase the cashless economy, the government has to come out with plenty of ideas such as discounts or freebies on digital transactions.

Not all store or shopping marts receive both payments. Why need to choose when you can use both of payment method.

With rapid changes in technology nowadays, it is not possible for customers to choose their preferred method of payment thus the more, the better.

Wonder how you can incorporate both cash and digital payments into your business, please do not hesitate to reach us out!

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