In many places, people now pay for almost everything by card or mobile phone, and cash is used less and less. Do the advantages of a cashless society outweigh the disadvantages?

The drawbacks are real and fall mostly on vulnerable groups. Older people who are not confident with technology may struggle to use mobile payments, and people without a bank account, often those on very low incomes, can find themselves unable to pay for basic goods. Digital payments also depend on technology that can fail: when a bank’s system goes down or a phone battery dies, people may be unable to buy anything. Furthermore, criminals increasingly target online accounts, and victims of fraud can lose large sums very quickly.

Nevertheless, the benefits are greater. Digital payments are fast and convenient, so there is no need to carry cash or look for a cash machine, and paying by phone takes only a second. Every payment is recorded, which helps people track their spending and makes it much harder for businesses to hide income from the tax authorities. Shops save the cost and risk of handling large amounts of cash, and street robbery becomes less attractive when people carry little money. In India, for example, instant mobile payments have allowed even small street vendors to accept payments easily. The problems mentioned above can be reduced by keeping cash accepted for essential services and by improving security and consumer protection.

In conclusion, although a cashless society creates difficulties for some people and new opportunities for fraud, its speed, convenience and transparency bring greater benefits overall, provided that cash is not abolished entirely.