Non-cash payments as a convenient method of settlement
Non-cash payment is one of the most convenient options for conducting payments.
What is a non-cash form of payment? Non-cash payments are settlements that are made without the use of cash by using checks, plastic cards, payment requests, and now electronic money and mobile cash-boxes.
Money - it is a means of mutual settlements. The society needs a universal equivalent in the form of some goods-items for exchange. The initial stage - are the goods, in the second stage - is gold, the third stage was marked by the transition to paper or credit money. A more convenient and affordable form of money advanced the evolution of money. Nowadays, electronic payment types are gradually replacing the need for cash in circulation.
In 60-70 years of the 20th century, many countries in their banks gradually began introducing card payment system, and it rapidly acquired an international character.
In our time, when on the average person spends 68 hours a month on the phone, the instruments of non-cash payments have moved to a qualitatively new stage of their evolution. For example, in the Swedish economy, according to the data of Bank for International Settlements, cash is only 3% of the total money supply, in the USA this figure ranges between 7%. An increasing number of countries are gradually moving from cash settlement to more convenient, cheap and efficient methods of non-cash payment solutions.
To date, 18.5% of Tajikistan's adult population has bank accounts with plastic cards.
What are the main advantages of non-cash payment?
One of the main advantages of non-cash payments, whether bank cards or other methods of virtual settlement, is convenience in using. There is no need to carry large amounts of money with you, and there is always the opportunity to pay for the necessary purchase both inside and outside the country. There is no point every time to pull out money, exchange large money or receive change in trifles. For example, for holders of bank cards, it is not necessary to withdraw cash from an ATM; it is enough to pay only by cashless settlement - in the store, for utilities or mobile services, etc. Now it is possible to receive cash from the card at any point of service or to make instant money transfers to friends, relatives who are at a distance.
Means of cashless payment, when properly used, are a safer way to pay for goods or services. First, they make it possible not to carry large amounts of cash with one and not worry about their safety. Secondly, in the event of loss (theft, loss, physical destruction, etc.) of the wallet, you will not be able to get the cash back, whereas the funds on the account of bank card or mobile money can be blocked. Reducing the risk of losing funds and the possibility of their recovery, gives the owner confidence in financial protection.
TRACKING OF EXPENDITURE
Cashless settlement means store data on all your payments for various goods and services. Having detailed information on expenses, you can find the answer to the frequently asked question "Where did the money go?" Payment by credit card is in fact your order to the bank to make a payment from your account. Having an electronic copy of all payments, it will be easier for you to track the necessary transaction. For example, if the paid goods were not of high quality, there is a possibility to appeal the payment in case of unreasonable refusal of the return of goods.
Analyzing information about your expenses, you can better manage your budget and plan your expenses well in advance. To date, in addition to bank account statements, there are a lot of mobile applications and other tools to keep track of your expenses. For example, through mediocre SMS notices, you can easily find out about the balance of funds in your account. This in turn will help you consciously limit unnecessary costs, and on the contrary, will help to keep and increase your savings.
Nowadays, there are many additional services offered by banks and a number of trade and service companies aimed at increasing customer loyalty. These include discount programs to increase the incentive to use a non-cash form of payment, bonuses, the possibility of using exclusive services (in airports, hotels, etc.), interest-free payment for goods and services in all countries of the world.