Many people right now prefer to pay by both cash and online payments. People would pay off their bills through online methods as they do not have enough time to go to the selected branch to pay their bills manually. They prefer to use cash when they buy something in a low price as it is worth the wait in the counter. As stated by KPMG, only 27% of the population in Southeast Asia did have a bank account while 438 million did not have it. Cambodia is the worst, where only 5% of the population do have a bank account.
Many countries in the world already make a move to make their country prepared to become a cashless society. Sweden and England are one of the few countries that implement cashless society a long time ago. Sweden already issued homeless people the micro card readers so that people can donate to them through debit and credit cards. To encourage cashless society, buses do not take any cash as payment and they demand that any payments must be made through debit or credit cards.
The good sides of being the cashless society are it is convenience for some people to go from a place to another. They do not have to carry around a lot of money as they are cashless, they simply just bring their cards to any stores to do any transactions. Besides, it is safer because no pickpockets will try to steal away or dropping your money without your realisation.
In addition, people who use mobile phones are increasing every day. For every statistics provided by Reuters, every country in Southeast Asia subscribes mobile connection more than their total population. It means, every one person have at least 2 mobile phones. So, it is easier to become a cashless society as many people in the country have functioning mobile phones. For an example, Malaysia only has about 31 million people and the mobile subscription is 42 million where it shows that many Malaysians have more than 1 mobile phones.
Other than that, the change in behaviour can be considered why cashless society is growing in Southeast Asia. As internet and smartphones taking over the world, people are willing to give it a try to become a part of the society. Young people are easily following the trend as they already born into a technological era, compared to older generations. Statistics also show that young people in Southeast Asia dominate the uses of mobile phones starting at 15 years old.
While every pro comes with cons, same goes to the cashless society.
People in a rural area are likely hard to adapt to being cashless compared to urban area. Rural people love to do every transaction by cash, so it would be hard for them to change from cash to cashless method. Besides, there are not many modern facilities provided by the government also worsened the situation as not so many information known by these people. Also, many older people in the rural area do not have any bank account and it will give them a hard time when they have to make a bank account just to be a part of the cashless society.
Then, people do not easily trust cyber security. They are worried that their money would get stolen by cyber trooper if they decided to go all cashless. They also afraid that anytime cyber-attack would happen and they will lose all money that they already collected. Companies say that their services are good enough to be used but small bugs that happen in the system can lead to cyber-attacks. For an example, Google had to close down their services as their security vulnerability is being said at a technology convention. The more the develop technologies are, the more the cyber robbery will take away the money in an account.