Tuesday, February 05, 2019

Why cashless payment is better

In Singapore, consumers are used to make small payments with cash. They withdraw cash from ATM machines and use the cash to pay to merchants.

They do not incur any fee to withdraw the cash from ATM machine or to pay the cash to the merchant. When the merchants deposit the cash into their bank account, there is also no charge.

Most consumers and merchants overlook the fact that the bank has to incur cost to provide cash through the ATM machines and to count the cash that is deposited into the account.

Similarly, the merchant has to spend time to collect cash, count the cash, count the change, and to deposit the cash into the bank. The time spent on counting the cash could be used more productively for the business. If the merchant employs a worker to do the work, the time spent by the worker is a cost to the merchant.

Let us see what is the improvement in productivity when an e-wallet is used, instead of cash.

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1 comment:

hiren patil said...

It's a great blog about payment systems thanks for sharing the blog to know more about online banking..
KYC bank account

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