If you’re confident enough to leave your wallet at home and rely only on your credit card or mobile device when taking a taxi, getting a cup of coffee, or buying groceries then you know that being cashless is not as big of a deal as it was a few years ago. Blockchain technology seems to be the best promoter of this new lifestyle, however, the transition is already occurring even without its help. Maybe using the NFC (near field communication) function inside your phone is not that popular, but swiping a card is something that even your grandparents learned to do. Everyone is aware of where payment systems are heading in the future, and it’s certainly not cash or any other physical assets: it’s all electronic. From Sweden, where only 2% of transactions are currently made in cash, to restaurants like New York’s Amazon Go stores refusing to accept cash, companies are crafting solutions for a cashless future, and the project is helping to hasten that transition with a blockchain-powered solution for small businesses and their customers while being in full compliance with local banks, law enforcement, and local governments. Would you have thought that to be possible? Well, it is and we’re going to explore their solution in this article. NEXXO Who’s ditching cash? Major global hubs are already ditching cash in favor of digital currency. Who’s going to be the one reaching 100% digital payments? We’ll have to wait and see! Sweden Sweden is one of the best examples of a cashless economy today. The percentage of cash in circulation in Sweden has fallen dramatically, representing less than . Only 2% of transactions are made in cash and it’s anticipated that the number will decrease to less than half a percent by 2020. That’s next year! 1.2% of the nation’s GDP “Cash is really disappearing in Sweden. It’s not accepted at many businesses and many banks won’t deal with cash anymore,” Rod Garrett, an economics professor at the University of California. explained https://twitter.com/adrianlovney/status/817285087746281472 It’s common to see throughout Swedish shops. There are even banks that don’t handle cash anymore. The biggest of all, The Riksbank, Sweden’s central bank, is developing a cryptocurrency for mobile payments, called . It’s not all about going strictly digital, though. It’s about safety and efficiency. That’s why they are considering creating a blockchain-based asset for smaller payments between consumers and entities. “No cash accepted” signs e-Krona The US While the Swedish government is supporting the cashless movement, the US, where cash-free establishments spread in recent years, is seeking to introduce legislation this kind of store. The main reason? They are promoting racism and elitism. banning “Most of the people who don’t have credit tend to be lower income, minority, immigrants. It just seemed to me, if not intentional, at least a form of discrimination,” William Greenlee, a Philadelphia City Councilman. said And these are not just words. have already banned stores that are rejecting cash as payment. It will be no surprise if New York or New Jersey will impose similar measures. Massachusetts along with the city of Philadelphia The new law hasn’t even been introduced properly and companies found a potential for a loophole. As Jim Kenney the change that outlaws stores which don’t accept cash, a store can still use only app-based transactions if a paid membership is required to shop there. , which have no cash registers but require an app and an Amazon account (membership) to gain entrance does not fall under the purview of this law. signed off Amazon Go stores https://www.cnet.com/news/amazon-might-open-thousands-of-its-grab-and-go-stores-over-the-next-three-years/ Where there is demand, there will always be a way. India The Indian government is taking things slowly, but it’s giving clear signs that being cashless is the long-term goal. In 2016, India 500 and 1,000-rupee notes. The measure was controversial, mostly because it was implemented under the pretext of reducing criminal behavior and roughly 99% of those banknotes have been removed. Since then, electronic transactions increased, but crime rates remained high. After all, this towards cryptocurrencies being blamed for criminal use, resulting in the complete ban of cryptocurrencies. banned backfired Last year, the Reserve Bank of India financial institutions to stop providing services to businesses involved with cryptocurrency, allowing for a three-month grace period. That period has passed and whether or not the Indian government will lift the ban or not remains to be seen. ordered China There’s nothing much to say regarding Chinese government support. However, you can easily tell people’s choice of a cashless society. What’s interesting in this case is that most of the population are avoiding cash and credit cards. They prefer payment applications like Alipay, which currently dominates the space being valued to . $150 billion https://www.cnbc.com/2018/04/10/ant-financial-to-raise-9-billion-at-a-150-billion-valuation.html Singapore The tiny island-state is notable due to its openness to new ideas. Actually, the government is supporting its population towards a cashless economy through the . Making it a public movement, the (14.4% of the country’s population) who are still using cash as their only mode of payment know where to find support and become part of the transformation. Could this be the last impediment before becoming completely cashless? Smart Nation initiative seniors United Kingdom Brits no longer carry significant amounts of cash. Just are made in cash. It’s not like it is in Sweden, but they’re making visible progress. It took them a decade to lower themselves from six in 10 and it’s expected to fall to just one in 10 in the next five years. three in every 10 transactions The UK government has seen the trend and they are pushing towards a cashless future. It’s not only about convenience, it’s about the a year the cash infrastructure currently costs to run. But the solution is not that straightforward. A portion of these funds need to be redirected towards a digital infrastructure first. With last year’s incident when shoppers across the UK discovered that their Visa cards had inexplicably due to a network failure, the mission becomes harder and harder. £5 billion stopped working A reliable infrastructure Governments move slow when it comes to technology adoption, while private companies are willing to adopt and test them. Our best example is , a financial technology company. Not new to the market, they have been active and profitable . They’ve seen the potential in blockchain technology and designed a blockchain-powered financial services platform for small businesses. NEXXO since 2014 While big companies have the resources and necessary support from large commercial bankers to handle digital customer purchases, employee salaries, or bill and tax payments, the , delaying the day when we’re going to become entirely cashless. That’s where NEXXO steps in with a banking solution that addresses the underserved and underbanked small business owners. small companies are left aside https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/financial-services/sea-fsi-digital-banking-small-medium-enterprises-noexp.pdf NEXXO made a test run once the platform proved itself fully functional, and this is how has seen huge success in Doha, Qatar. The market demand made it the fastest growing fintech company in the Middle East, issuing more than 380,000 bank cards ( ) for over 15,000 small local businesses. That’s right. Real bank cards tied to a local bank account with an IBAN. NEXXO fully complies with local regulatory laws and regulations imposed by the local central bank, government, ministries, and law enforcement entities. QPay MasterCard branded The company is expected to expand into Vietnam, Pakistan, India, Indonesia, Egypt, and China in the following years, replicating the success they had in Qatar. As you’ve seen, some regions are more open to a cashless future than others, however, by having the technical solution in place, NEXXO is able to propose a structure that helps central banks take cash out of their system, local banks increase their deposits, Visa and MasterCard expand their transactions, and small businesses get the necessary banking services for cash-free operation. Conclusion It’s pretty clear that we are becoming a cashless society. But by when? That’s the real question. Debit card transactions just overtook their cash equivalents in 2017. The battle is half won. Now the only thing left is to find new solutions to help hasten the process. is already doing its part. From their approach and from our market analysis, the way to reaching a completely cashless system will be segmented, with each region helping its own customers, businesses, and local banks make the transition. When do you think your home country will be ready to ditch the banknotes? NEXXO
