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Cashless Economy Sovin K Thomas

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Page 1: Cashless economy

Cashless Economy Sovin K Thomas

Page 2: Cashless economy

Black money • People intentionally do transaction in cash to save income tax.• All illegal activates like money laundering, kidnapping, Bribe to

government officers, terrorist activities consummate in cash payments.

• Indian companies are reportedly misusing NGO and public trust for money laundering.

• Generally people convert their black money into Gold and real estate.• Still 8% of total black money is in cash.• Recent demonetization will help to reduce black money which is in a

cash form.

Page 3: Cashless economy

Payment: The transfer of money from one individual or legal entity to another

Cash Personal Cheques Money orders (Bank note)

Traditional Payment Methods

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2001 4

Selection of Payment Method Based on:

Convenience Trace-ability Repudiation Financial risk Fraud protection

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What is a Cashless Society?• No paper money or coins• Everything is electronic• Payment via E-wallets• EFT- Electronic Funds Transfer• EPS – Electronic Payment System• Microchips/Smart Cards

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Impacts of a Cashless Society Transition process Education process Economic implications Universal acceptance What’s next?

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Security Benefits Electronic means of recognition Verification records of all transactions Computer errors are far less common than human

errors

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Security Risks Misuse of technology Potential for a new crime frontier Less regulation and scrutiny

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Cashless Controversies Much less privacy Wasteful spending People taking on more debt Bad for those who are reliant on cash

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Various E-Payment Methods Credit and Debit card Digital Currency E-Wallets Peer-to-Peer Methods Smart card Micro-payments B2B

2001

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Credit/Debit Card The most popular payment method Cards are issued by a bank Unique 16-digit number (including check digits) and an

expiration date Third party authorization companies verify purchases•

2001

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E-Wallets Established by financial institutions in partnership with member E-

Commerce sites Allows customer to submit billing and shipping info with one click at

member sites Also can store e-Cheques, e-Cash and credit card information Not as popular as originally projected Entrypoint’s InfoGate offers an e-wallet

2001

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THANK YOU

Sovin K Thomas