Payment gateways could eliminate the use of cash

in LeoFinance2 years ago

We have continuously seen how technological advances have opened up the possibility of other payment methods. In many stores, payments are no longer even made by credit or debit cards, but by payment gateways.

There are still many people who use cash on a daily basis, I particularly have about a year without using cash from my country's currency. However, this is a possible reality for the more educated population and for areas with good internet service and technology; there are areas of Venezuela where the electrical service failures are constant, so it is easier to buy dollars in cash and solve your daily life with cash in hand. Perhaps later I will make a more extensive post on this subject. The important thing is to highlight that, although cash has stopped being used in some areas in others it has become an important need.

Thinking about a more optimistic scenario, we see how when you go to a coffee shop or a store you might make your payment through a payment gateway already to pay with fiat coins, digital assets or crypto-currencies. In this year 2020 with the Covid-19 pandemic the use of e-commerce increased, and these websites or applications have payment gateways for customers to make purchases, then the increase in online purchases increased and in turn increased the amount of payments through payment gateways.

Abandoning cash

The use of cash is notorious in unbanked societies, naturally humans have been accustomed to barter, so it is a challenge to eliminate cash in general. In this context, many institutions have conducted studies to assess the state of countries with lower cash use, Sweden has the goal of no longer using cash after 2030; in addition to Sweden, other countries that are quite digitized in terms of payment methods are South Korea and China.

In the case of Sweden, 85% of the country has access to online banking and only 2% of the country's transactions are in cash; it may be the first company to eliminate cash. This year 2020 Sweden implemented its e-krona crypto-currency; according to Riksbank, e-krona users will eventually be able to manage payments, deposits and withdrawals through mobile applications, smart devices and cards.

China: China also has a large cashless market, which is dominated mainly by WeChat Pay or Alipay de Tencent, which is owned by Alibaba. As for China, the means of payment are mostly through the use of QR codes. As a result of the covid-19 pandemic we saw how large amounts of cash were burned in China and highlighted the importance of not using cash as a method of payment.

United Kingdom: The UK's preparedness in terms of digitalization and technology adoption is remarkable, arguably the global capital of online banking. However, they recently established new legal measures to ensure access to cash for the elderly and most vulnerable people.

Similarly, there are many countries where payment gateways have been increasing, and many have created their own crypto-currencies, which also decreases the use of cash to some extent.

There are many challenges that still need to be overcome in order to eliminate the use of cash, rural societies and levels of technological literacy, as well as access to Internet service, and the challenges are security, management of digital platforms and more. What is a fact is that the pandemic and the use of Blockchains have facilitated the digitization process.

Tell us if you still use cash or in what percentage you do, in the case of Venezuela it is very common that the dollar is used in cash and not the Bolivar which is the national currency; also, there are frequently new payment gateways and the mobile payment of traditional banks is widely used.

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It's sad to see cash disapeering. The important attribute of cash is its privacy! FIAT currencies that are digital lose the privacy as banks can see what you're doing and possibly censor transacations. This is happening right now in Venezuela. If we have privacy with crypto, like you would have with cash, then that's the killer implementation!

Nice post, I'll continue to follow your work!

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Well said. Luckily we do have cryptocurrency projects like Dash and PIVX that try to be digital cash. Dash use on chain mixing which has not been de-anonimized yet. PIVX mixes zk-SNARKs and PoS.

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What's your favourite project when it comes to the 'Digital Cash Race'? My guy says BCH. Never heard of PIVX! Thanks for the comment.

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BCH has so many things going for it that makes it far superior to BTC. I like Roger Ver. He has a real vision and wants to create a scalable, cheap and usable system. But my pick will be Dash. Roger Ver himself has stated on several occasions that he has diversified into Dash. Dash has four things BCH doesn't:

  • On chain governance through MasterNodes
  • On chain privacy through MasterNodes
  • ~1 second transactions
  • Decentralized self-funding is PoS Dash with zk-SNARKs (an implementation of the technology used by ZCash) instead of decentralized coin mixing.

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Yes, privacy is the most precious and most violated thing in these times. There is a great educational challenge for the general society to understand the importance of privacy, especially in such countries

Today, there are several projects in crypto-currencies trying to achieve this goal, so that we can trade in private digital currencies.

Thank you for sharing your opinion @localgrower, I learn a lot from comments.

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Cash is a placebo effect for the community or society, which to get out of our minds must first change the economy and forms of payment of that country.

In the United States you can pay almost everything from your cell phone without having to take it out of your pocket.

It is something that perhaps in 20 years we can see in different parts of the world.


I love your optimism, I would also love to see such an evolution in third world countries.

Cheers to you too!

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Igual para ti, 😬✌️

We'll see how it all works out soon, but we also need physical payment tools too, we can't just rely on the digital system. But we soon see , when Dollar and Euro is cone then something new will definitely come right away, each end will bring something new.

And cool post, I was like it.

Yes, these more digitized economic systems can show how it could be in other countries, although it really depends on many factors.

Cash has played a very important role in human history and replacing it will not be so easy. It is important what you say @foxkoit, the physical payment systems are important.

Thanks for your comment, I like to know your opinion!

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You are welcome :) I be back more soon.

The only ones who have not yet eliminated the use of cash are the carriers, here in Aragua you have to give birth to the cash because it is not available anywhere and to go to the capital of the state of Maracay or ccs, you have to have a lot of cash and if you have dollars because they do a lot of cheating and if it is at 900 they change it to 750, so the day they implement the use of electronic payment because more people would use the transport.

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We as a society make life more difficult for ourselves. It is unfortunate that these things happen in Venezuela. Here in the city of El Tigre also the price of the dollar is very variable and transportation is still paid by cash.

I try to pay the most services by electronic systems and payments, because in Venezuela there is not enough cash in the banks, the most immediate cash is the dollar. I hope that soon there will be more adoption of digital payment methods.

Thanks for sharing your experience in the comments @fabian98, I was pleased to know the situation in Maracay through your opinion.

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I didn't use cash to buy something in a store since some time ago. I only use cash in public transport. Solutions like payments via SMS or smartphone apps are rising. I think people will find in a near future that cryptocurrencies offers effective solutions for payments via applications.

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I am glad to know that you use the payment facilities. As you say, the use of applications with electronic payment systems is increasing. I really hope that the adoption can be maximized very soon and that also the use of crypto-currency as a payment method will be more accepted.

Thanks @acont for sharing your opinion with us, I felt very identified with your comment.

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Oh hey there I think I've seen you on Twitter.
Nice to see you on LEO.
Looks like you've been around three months.
And a far longer history on Hive/Steem.
Good to have you here.

Goodbye cash.

This is always a good message to throw out there.
Cash's last remaining utility is the physical nature of privacy.
Shame it doesn't store value better.

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Thanks for the welcome, yes, I have some time on these blockchain steem/Hive. It has been very nice to be on the Leofinance, I like the idea of learning many positive and financial things here.

Yes, the value of privacy provided by cash is great, but its value is a challenge. Here in Venezuela our currency is devalued, but still many people prefer to use cash because they feel more secure, less exposed to online scams.

Thank you for the welcome and for sharing your opinion, I reflected a lot after reading you!

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