We hear constantly the word ‘Green’, and the first thing that probably comes to our mind is peace, growth and other synonyms. People today are getting very much inclined towards the concept of a cashless society.
No cash equals green business? Let's see how the mobile app development company Peerbits expalins the close relation between these two topics in a new pro mobile app developer article.
While some are finding it difficult to implement the cashless trend in their system, few countries have successfully implemented it to a large extent. Some of the top examples that we've found in an Statista's survey are:
Though the figures mentioned above are large, still these economies are not wholly cashless. But yes, they definitely are among the leading ‘less-cash' economies. Asian giant India is also looking forward to the same with the mission of a cashless India thanks to the mobile movement.
However, out of these, we've found Sweden a little more interesting. You might know that the country had its first banknotes in 1661, by Stockholms Banco. The interesting part comes in 2015 when Sweden launched its new series of notes, featuring pictures of cultural giants from the 20th century.
While the step is appreciable on one side, on another it makes no sense as the economy there is moving faster towards going cashless. The entire economy prefers using either card or the smartphone as a medium of payment. In 2015, cash transaction were only 2% of all the payments.
It isn’t just Sweden, China has shown signs of inclination towards going cashless. While in 2009, only one-third of eCommerce payments were made online, today they exceed 70% of total payments.
Where it starts
If we turn the pages and reach the age of barter system, or silent trade/barter, or dumb barter, we can understand why being cashless is better. When money didn't exist. Though there were some loopholes (like a double coincidence, no common measure of value, indivisibility of specific goods, etc).
However, one can still notice traces of the same. According to a report shared by International Reciprocal Trade Association (IRTA), over 450,000 business houses transacted $10 Billion globally. Not only this but an estimated value talks about the same number of businesses in the US involved in barter exchange activities for the year 2010.
For any economy, business is the lifeline. And with it come smartphone payments and mobile apps. Mobile app development companies can also benefit from this, let's see how.
Though many people call ‘cashless economy' as a hypothetical move, the above-mentioned report shares the inclination of people towards going cashless, and the expected future.
Amidst the entire scenario, a question often comes to our mind; how can going cashless lead to green business? Keeping first things first, let us explain what a green business means. When we use the term green business this takes us further to two branches:
Let us understand them individually.
For every business enterprise, managing the flow of transactions and further tracking them, is one of their major concerns. Looking after the flow of money and running behind it (or making a set of people do the same). The process isn’t just tedious, but also consumes your valuable resources.
With society going cashless, the money flow will eventually speed up. Let us accept the fact that even if you receive the payments in cash, it has to go to your bank account (for some cases, if not wholly, at least partially).
The fact might surprise you, but out of the 1600 banks in Sweden, 900 banks don’t keep cash on hand. Yes, you got that right, they no longer accept cash deposits.
Green economy in itself holds two different sections. While the first is in context to both natural and monetary expense incurred on creating the currency, the second one narrates the educated section. Going cashless will indeed make people more aware of the technology and eventually enhancing their knowledge base.
The two combined together, will undoubtedly bring a healthy society which will transform the business and subsequently the economy drastically. The saving thus can be further used in building the country efficiently, or if we talk from the businessman’s perspective, the same can be utilized for business growth and expansion.
Also when we talk about the cashless economy, we can save numerous trees that are being cut to create the paper notes or the pollution caused due to the manufacture of plastic money.
Going cashless might be getting all the limelight for its outer benefits, but a deeper sneak reveals the numerous benefits it yields for a business and subsequently the entire economy. So by the time the government takes initiatives in making the economy ‘green’, it is also our personal responsibility to take initiatives from our end. Mobile app development companies must be up to date about this, who knows which technology will be used in the future to avoid paper money, or how mobile apps will help on this. We've already seen Beacons technology, and how it helps consumers thanks to mobile apps to buy something on the shelf without the need of going to a cashier.