How can a cashless transaction be advantageous?

Cashless is a new trend and today the country is moving to owe these new changes after demonetization.  Initially, people were confused and were concern about the transactions and this added a lot of stress during the initial period. The move towards the cashless transaction increased as the discounts and many other offers were introduced. After a certain period, the identity of the currency notes were back, but people seemed used to the cashless transaction. There are certain gains and drawbacks of cashless transaction, but unless you are aware you might have to face drawbacks.

Advantages of cashless

Convenience

The ease of conducting the financial transaction is probably the biggest motivation that has helped to move towards the digital. Due to the cashless transaction, carrying a bundle of cash, plastic card or the queue up in the ATM withdrawal can be just skipped. Also, due to the cashless transaction, it has become easy to make the payments without worrying. Other than the low-income group, the cashless truncations have proved to be constructive and simple.

Discounts

In order to promote digital transactions, people have been provided with discounts. As per the recent wavier of service tax, one can easily do the card transaction of up to Rs.2000 without any pin or password. Also, the use of the cashless transaction have made it easy for the people to save on rail tickets, tolls and even shopping. Some of the mobile wallets also have introduced cashback which has encouraged the people to make use of the digital transaction.

Due to the use of digital transactions, it has been easy to improve the cash flow margin.

Tracking spends

Due to digital transactions, it has become easy to keep a record of the amount you spend. Also, due to this facility, it has become easy to explain the transaction when you file Income Tax. Other than tax, this also helps you plan your budget accordingly.

Lower risk

If the cash from your wallet has been stolen then it is possible to get it back, but if your cards or mobile phones get stolen then it is even easy to block the accounts and avoid the misleading activities from your accounts. Digital transaction have provided number of options which has made it possible to keep your accounts as well as transaction. Even the apps from which you are supposed to make transactions can simply add a password to the app and use them.

With the help of cashless transactions, the finance sector is about to completely change. Analyzing them in a proper manner and designing them to get the utmost benefits is the need.