Physical cash, banknotes, bills, paper money – no matter what you call it, it’s all dirty. Studies have shown your average banknote carries more germs than a household toilet, capable of hosting a live flu virus for up to two weeks. Insert puke emoji here.
If that’s not enough of a reason to completely abandon your daily use of this traditional mode of financial transaction, consider the benefits of using digital alternatives.
E-wallets
This is the age of digital wallets and multiple payment options. Beyond your bank-issued contactless-enabled debit card, the stakes are getting higher for providers to introduce and offer as many services and conveniences to the public as quickly as possible, especially with the recent issuance of digital banking licences to five consortia.
Glance at any Malaysian’s phone and you’ll likely find apps and e-wallets such as GrabPay, SamsungPay, ApplePay, ShopeePay, Wise, Starbucks, BigPay, Touch ‘n Go, Luno, and DuitNow, to name just a few.
As opposed to hunting for an ATM or digging for change, the popularity, simplicity, and speed of scanning QR codes and walking away within seconds cannot be understated.
What it’s like going cashless
Imagine following a day in the life of a female urban professional who has gone fully cashless. Running a little late and rushing to the closest LRT station with payment app in hand, she passes through the turnstile just in time to catch the next train.
A few stops later, exiting at her destination station, a craving for a latte to kick off the day brings her to the closest coffee chain outlet. On her app, she uses her rewards for a free beverage, and is quickly back on her way to work.
At lunchtime, she and her co-workers head out. Remembering she has shopping refund credit, she offers to pick up the tab and pay by scanning a QR code, while some of her colleagues pay for their share via instant online transfer.
Her remaining co-workers suggest squaring things off by going for drinks after work, and order a six-seater via a rideshare service. Joining them are some clients from overseas who insist on splitting the bill and digitally send her some US dollars, which she instantly receives in ringgit.
The tech guys, who have gone cashless for years, agree to pay their share in Bitcoin and send a transfer directly via her cryptocurrency app.
A quick glance at her phone reminds her it’s 7.30pm and she’s down to 10% battery life. She heads over to the supermarket to grab some essentials using a NFC-enabled app on her phone, which debits her bank account automatically.
A notification to pay her internet bill pops up and she opts to use her app rewards to pay for half the amount. Hopping back on the LRT to head home, she scans her payment app once more just before her phone battery hits 1%.
Disadvantages
Relying solely on your mobile device does come with drawbacks. If your battery dies, or if you lose access to data or WiFi, or lose your phone, you could be left in a conundrum.
So, although owning a portable battery pack could help, having an emergency RM50 in cash tucked away somewhere would still be a good idea.
Advantages
With an NFC-enabled smartphone, a wider range of payment options are available to you. And with many e-wallets offering points or rewards, the incentives can add up to plenty of freebies or even pay for your monthly utilities.
Keeping tabs on your spending is automatically easier with the built-in expense trackers on most applications, recording each transaction even if you lose the receipts.
So, although having some cash around as a backup would still be a good idea – especially when it comes to parking machines at certain malls that only accept cash – the overall benefits, ease of use, and convenience of digital payments are strong selling points.