Answer to Question #251262 in Microeconomics for Raj

Question

Do we need cashless transactions? What are the modes of cashless transactions

Answer 1

Cashless payments or transaction eliminate a lot of business risks at same time such as theft of cash by employees, counterfeit money, and robbery of cash. Moreover, it also reduces costs of security, withdrawing cash from bank, transporting, and counting.

There are many different ways by which a user can make payments without cash.

1- Banking cards(credit or debit cards)

2- Mobile wallet apps

3- Unstructured Supplementary Service Data (USSD)

4- Gift Cards or vouchers

5- ECS (Electronic clearance service)

6- QR Codes

are some prime examples of cashless transactions.