Importance Of Cashless Economy In A Smart City
As a developing country, job prospects in the major cities of the country are higher than rural cities. For socio-economic reasons, migration to the big cities is higher. Smart cities combine both technology and innovation that not only helps in making the environment better, but also make the daily life of residents easier.
Cashless payments are an important feature of a smart city. Institutions across the spectrum are making efforts to build a sustainable cashless system. Cashless transactions ease daily transportation and payment services, thereby reducing time and saving energy. With POS deployed in places like railway stations and bus stands, citizens will be able to pay for their journey with just a tap. Services like Apply Pay and Samsung Pay offer such benefits, not only for transportation, but also at stand-alone shops and kiosks.
Cashless transactions help the economy as well. A study conducted in 100 cities by Visa in 2017 showed that the net benefit and revenue from digital transactions contribute an estimated 3% to the city’s individual GDP.
Cashless payments also reduce errors, crimes and the cost of labour involved in processing the cash. This increases the number of jobs and contributes to the growth of the economy.
To become a cashless city, cities will need backing from technology partners and banks that can set up payment kiosks in places to make public transport and other transactions seamless. Against the threat of hacking or possible malpractices, cities need to upgrade their security frameworks. Cashless transactions and a sustainable digital framework for money are a vital part of a smart city.
