Two question Essay on cash payments
In the future, people may no longer be able to pay for things in shops using cash. All payments may have to be made by card or using phones.
Do you think this will happen one day?
Why do you think some people might not be happy to give up using cash?
In years to come, some people say that money will no longer be accepted as a means of payment when shopping. Instead, debit or credits cards or mobile phone apps will be used. However, I do not agree that this will be possible due to poor network connectivity. Moreso, some individuals will not be satisfied with this idea because of their technical inabilities and the fear of fraudulent activities.
To begin, I am pessimistic about the likelihood that we will arrive at a point where internet banking will completely replace cash transactions. In many countries, especially in Sub Saharan Africa, network connectivity is very unreliable. Many a time, online transfers, POS and USSD transactions experience failures with lots of reversals leaving users frustrated in these countries. A practical example was the torrid experiences Nigerians faced in the wake of the introduction of the new Naira in late 2022 to encourage a cashless policy. This was very difficult to achieve because many spent lengthy hours in queues, trying to access cash, since they couldn’t perform online transactions seamlessly. Given such instances, I do not see the possibility that in such countries, businesses will totally adopt cashless policies in the future.
Moreover, some set of individuals like the elderly, who do not know how to operate phones will find it really frustrating to give up cash. For instance, 90% of mobile phone users in Africa are teenagers and middle-aged persons, leaving only 10% of mobile devices users as those who are aged 60 years and above. Research has also shown that this situation is not because the latter category of persons cannot access tablets, phones or computers, but because they are not technologically savvy to operate these devices. As such, they would be unwilling to perform their transactions using bank apps or even ATM cards.
Furthermore, with the use of only cards or phones for payment, these people believe they would be victims of fraudulent activities or fraudsters, if they misplace their phones or cards. This is because, phones contain personal information relating bank accounts and bank transactions and once an individual misplaces his phone, it is likely to fall into the hands of hackers. Even if these elderly ones choose to use credit cards or phones for their transactions, network challenges may arise. The network used in operating their bank apps or ATMs may be poor or slow, leaving them frustrated and this can cause delays in payments, long queues in banks and a desperate urge to revert back to cash payments.
In conclusion, while others say it seems possible for swipe cards and phone apps to completely replace the use of cash for shopping purposes, I do not agree that a cashless policy will work in some places, just as our elderly ones would frown at this idea. How would they be able to get their needs met if they cannot operate and understand how the devices work?
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