An easy way to understand Cash less Economy

1. Cashless Economy
Sovin K Thomas

2. Black money
• People intentionally do transaction in cash to save income tax.
• All illegal activates like money laundering, kidnapping, Bribe to
government officers, terrorist activities consummate in cash
payments.
• Indian companies are reportedly misusing NGO and public trust for
money laundering.
• Generally people convert their black money into Gold and real estate.
• Still 8% of total black money is in cash.
• Recent demonetization will help to reduce black money which is in a
cash form.

3. Payment: The transfer of money from one individual or legal
entity to another
 Cash
 Personal Cheques
 Money orders (Bank note)
Traditional Payment Methods

4. 2001 4
Selection of Payment Method
 Based on:
 Convenience
 Trace-ability
 Repudiation
 Financial risk
 Fraud protection

5. What is a Cashless Society?
• No paper money or coins
• Everything is electronic
• Payment via E-wallets
• EFT- Electronic Funds Transfer
• EPS – Electronic Payment System
• Microchips/Smart Cards

6. Impacts of a Cashless Society
 Transition process
 Education process
 Economic implications
 Universal acceptance
 What’s next?

7. Security Benefits
 Electronic means of recognition
 Verification records of all transactions
 Computer errors are far less common than human
errors

8. Security Risks
 Misuse of technology
 Potential for a new crime frontier
 Less regulation and scrutiny


9. Cashless Controversies
 Much less privacy
 Wasteful spending
 People taking on more debt
 Bad for those who are reliant on cash

10. Various E-Payment Methods
 Credit and Debit card
 Digital Currency
 E-Wallets
 Peer-to-Peer Methods
 Smart card
 Micro-payments
 B2B
•
2001

11. Credit/Debit Card
 The most popular payment method
 Cards are issued by a bank
 Unique 16-digit number (including check digits) and an expiration
date
 Third party authorization companies verify purchases
•
2001

15. E-Wallets
 Established by financial institutions in partnership with member E-
Commerce sites
 Allows customer to submit billing and shipping info with one click at member
sites
 Also can store e-Cheques, e-Cash and credit card information
 Not as popular as originally projected
 Entrypoint’s InfoGate offers an e-wallet

2001

28. THANK YOU
Sovin K Thomas