For a while now, there has been a compelling argument that technology is advancing at a pace that households, businesses and even governments are struggling to match.
One prominent example is provided by various cashless technologies, with the amount spent through credit cards and contactless transactions now considerably higher than cash payments. Despite this, it’s estimated that one-in-eight Brits would be left adrift if the UK transitioned into a largely cashless society, and this is something that continues to loom large on the horizon.
Whilst an independent review has now been set up to examine the impact and evolution of cashless technologies, this remains a key concern for society as a whole. In this post, we’ll take a look at modern cashless technologies and ask how they’ve been impacted by the financial trading sector.
What is Cashless Technology?
In truth, there are many examples of cashless technology in the digital age, some of which have been in existence for decades now.
The best and most renowned example exists in the form of debit and credit cards, with the former launched in the 1970s but the former having been upgraded to allow for direct transactions as well as cash withdrawals.
Other, and more contemporary, examples include the development of e-wallets and mobile payment wallets, whilst a Unified Payments Interface (UPI) also offers a real-time payment system that facilitates cashless, inter-bank transactions.
Perhaps the most topical cashless technology exists in the form of contactless payments, which have become increasingly accessible over the course of the last two years. Interestingly, the UK also leads the market in contactless payment values from a European perspective, with an estimated €107.6 trillion generated through this type of transaction in 2017 alone.
How have the Financial Markets Impacted on Cashless Technology?
In many ways, the entire foundation of a cashless society has its roots in the financial markets, with central banks and big tech organisations having long since pushed for the eradication of paper and coins.
There are several reasons for this, but one of the most compelling is the desire for institutions to slash their operational and transaction costs. This premise is also evident in the forex market, whereby online brokerage firms are able to process real-time and cashless transactions without requiring investors to pay fees or commission costs.
If you register for a trading account on a reputable platform such as ATFX, you’ll also have comprehensive access to everything from in-depth information and analysis to real-time order facilitating. The eagle-eyed amongst you will recognise that modern banking apps adopt a similar structure, as they empower users to review both live and historic transactions whilst also making commission-fee payments. With such powerful backers and influencers, it seems inevitable that we’ll continue to inch closer towards a cashless society in the coming years. Whether this ambitious will ever be realised has yet to be seen, but if this is the case then it will have a great deal to do with the evolution of the global financial markets.