In today’s fast-paced world, the choice between using cash or a card for your purchases is a decision many people face daily.
Many small and big businesses changed the way they handle money after the pandemic. The OK Urban concept store, for instance, completely stopped using cash.
Starbucks is another business that has made a complete switch to cashless payments in their stores.
With stores moving away from cash, it’s essential to consider the advantages and disadvantages of each option to decide what is right for you.
Cash, which is the usual way people pay, gives a feeling of real money that makes many feel comfortable. You can spend only what you have in your wallet, and it is accepted everywhere.
In contrast, using a card, whether it is a debit or credit card, brings convenience and safety. You do not need to carry lots of cash with you, and if your card gets lost or stolen, you can report it and get a new one.
The ongoing debate over which is superior frequently revolves around security concerns. Cash transactions are discreet and less vulnerable to data breaches.
However, if you lose cash, it is gone for good. Cards do offer some protection, but they can be susceptible to fraud.
Which is more dominant?
Data from PwC Strategy&’s Payments and Open Banking Survey 2022 reveals that cash is the dominant payment type in Africa, closely followed by debit cards.
In South Africa, youth aged 18 to 25 are the heaviest cash users, with 50% citing the absence of alternative payment options or merchant requests as reasons for using cash.
In this cashless setup, transactions occur using cards or digital transfers, replacing physical currency. This change aligns with monetary policy. Shifting from cash to digital is more economical, offering savings that can benefit individuals and businesses.
Physical cash comes with expenses and hampers economic growth compared to efficient non-cash methods.
While the advantages of going cashless are highlighted, non-cash options struggle to gain traction in South Africa.