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  • October 8, 2020
  • Daisy marshall

When was the last time when you paid for everything in cash for a whole month? Finding it hard to remember? Don’t worry because neither do we remember. As per sources of UK Finance, in 2018, only 28% of cash transactions have taken place.

In the next 8 years from today, i.e. 2028, it is predicted that only 9% cash transaction will take place making the cashless payment technology rate go up.

Cashless digital payment is seen as feasible, convenient, and secure for both consumers and businesses. We could not have imagined such drastic technological advancement back in the early 2000s.

The e-commerce industry had started a boom in the cashless industry, giving you a choice to pay through debit card/credit card or net banking. It became feasible for people to choose these services to avoid the hassle of giving cash to the delivery guy.

We know that slow and steady wins the race. The same thing can be said about digital payment technology. The fast internet, smartphones, digital payment platforms for peer to peer transactions, mobile banking apps, and online banking is our reality.

Time-saving and fast experience for the consumer

Do you remember when the last time when you had to go to pay the electricity bill physically was? The hassle to stand in a queue for hours to finally give them cash and take the receipt! It was a time-consuming and slow process.

However, with digital payment techniques and facilities available, you can pay every bill electronically within minutes from anywhere. These tools proved to be useful during the lockdown and Work from Home during the COVID-19 pandemic.

We are not saying that cash and cheque methods are entirely out because some people still like to use these methods or cash transactions. The industry is innovating themselves for these people, such as the Bank of England has introduced polymer banknotes. For cheque, cheque imaging is going to be introduced to speed up the cheque clearing process.

PSD2 to change society in the UK

Second Payment Services Directives (PSD2) is fundamental payment legislation that was introduced in Europe in 2016. It means to give third-party companies access to customer’s explicit data. Nevertheless, these also tend to bring you more security and protection. It will also enable social media to connect to payment facilities.

Such facilities are available in the US but they are making their way in the UK. With two-factor authentication, payments can be made using the customer’s API.

Peer to Peer Transaction became easier

With digital payment technology, Peer to Peer Transaction or P2P transactions became much more accessible. It is effortless when you need to split the bill with your friends or roommate.

Got monthly rent to split between you and your roommate?

Digital payment has made it easy. In other words, it allows the funds’ transfer between two parties using their bank accounts or credit card through mobile or online mode. You don’t have to worry about forgetting your wallet at home or short of money when you go out for dinner. You can pay your side electronically.

Shop without any ‘Cash’ worry

Last time you went shopping with your family or friends, you used cash to pay at the counter for buying all the items. However, with digital payment, you can pay from your Smartphone with a quick scan from your mobile to the QR code. This enables the customer to avoid keeping so much cash with them and use digitisation for the best.

Many retailers are now opting not to take cash and support cashless transactions more. It reduces the risk of robbery and proves to be more comfortable for the companies as they don’t have to deposit the cash to their bank every week.

Digital loan borrowing facility

You already know that you can get easy loans by applying online to direct lenders. You do not need to go to the offices to stand up in a line waiting for your turn to talk to a loan representative.

Go online, visit the website of the lender, and fill their Call to Action form so that they can contact you as soon as possible. Get easy loans in your doorsteps via doorstep loan or get another small-term non-guarantor loan facility within 24 hours. Even if you have no guarantor to borrow long-term loans, direct lenders in the UK provide a 100% guaranteed loan with bad credit score and no guarantor.

In the past few years, digital payment methods have made their way up in the market to replace the traditional mode of payment methods such as exchange of cash or cheque. E-Wallets, digital payment through mobile or online banking, credit card or P2P transactions are today’s reality.

According to the UK Finance source, we are using 72% of digital payment technology. Soon this number will rise, leaving the traditional method to be less than 10%. After COVID-19, people have started using electronic methods to reduce the chances of getting transmitted with the virus. With staying at home most of the time, the cashless transaction is new normal for people.

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