Le
Le Hoang Long
Mr. S. Garbus
Economics, block C
26 Jan. 2011
MOVING TOWARD CASHLESS ECONOMY
Moving toward a cashless economy is an important subject that has been argued recently because of the significant increase in the number of people who rely on electronic banking, debit cards and credit cards when they purchase goods, pay for services or transfer money to other people or organization. Although electronic banking has the aid of the developed technology to satisfy either financial system and their customers, it still cannot totally replace cash, since cash has it own benefits which help avoid some electronic banking problems.
In fact, we cannot deny many advantages of the electronic banking system. From the graph of “Non-cash payment, 2003”, we can easily find that about 55% people chose to use credit cards, debit cards and other electronic methods of payment instead of using traditional checks. With the convenient of electronic banking, people are now able to purchase goods and pay their bills online in a fast and safe way, with just some mouse click. Not only consumers, merchants also benefits by electronic banking. Accept payment by debit cards or credit cards is less costly, in time and human-labor force, than accept payment in cash or checks. It becomes especially in nowadays, since time is gold. Moreover, credit cards help people to purchase goods and pay for services at anytime even though those people don't have enough money at that time.
