The Impact of Cashless Transaction in Business

Author(s): Divya S and Madhushree S

Abstract:

This study looks at how cashless transactions are changing the way businesses work. It explains how using digital payments like cards, mobile apps, and online transfers can make business faster, safer, and more convenient. Cashless systems help reduce theft, save time, and improve customer service. However, they also come with challenges such as internet problems, transaction fees, and the risk of cyberattacks. Not everyone has access to digital tools, which can make it hard for some businesses and customers. Overall, going cashless has many benefits, but it needs good planning to work well for everyone. The rapid shift toward cashless transactions has significantly transformed modern business operations. Digital payment systems such as mobile wallets, UPI, debit/credit cards, Internet banking, and online payment gateways-have enhanced the speed, accuracy, and convenience of financial activities. Businesses benefit from reduced cash-handling costs, lower risks of theft, improved transaction transparency, and more efficient record-keeping. Cashless systems also enable better customer experiences through faster checkouts, seamless online purchasing, and flexible payment options. For firms, these technologies support better financial planning, real-time tracking of sales, and easier integration with accounting and inventory software. However, the transition also presents challenges. Small businesses may face high transaction fees, dependence on network connectivity, cybersecurity threats, and resistance from cash-preferred customers. Despite these issues, the overall impact is largely positive, promoting greater efficiency, accountability, and scalability. As digital infrastructure expands, cashless transactions are expected to become an essential component of sustainable business growth and competitive advantage.

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Pages: 67-71     |    3 View     |    0 Download