How we handle our finances rapidly evolves in today’s interconnected yet fast-paced world. The rise of electronic payment system, fueled by technological transformations, has advanced how the country pays for goods and services. From credit cards to mobile phone apps, the convenience and social benefits from the establishment of cashless transactions have made them an integral part of our daily lives.
Three main types of government agencies, the Department of Information and Communications Technology (DICT), the Bureau of the Treasury (BTr), and the Land Bank of the Philippines under the guidance of Central Bank — all with authority on information technology — have created an online payment system and infrastructure called eGovPay, an electronic platform or payment system for processing all government payments.
eGovPay is in development of a one-stop shop app that links websites and services of various government institutions, government organizations, and agencies. The payment system is being developed to allow users to pay for their government transactions in one platform, whether through online bank accounts, e-wallets, e-cards, cash payments, or kiosks. eGovPay is currently available on Google Play Store and the Apple App Store.
According to Landbank, this eGovPay will transform and provide regulatory framework to the current payment systems for taxes, fees, and other public sector engagements. It is also seen to mitigate payment processing costs charged on the citizens, brought by various types of transactions for government services, thereby providing cost savings. With national payment systems like this, every transaction is more convenient and smooth functioning for Filipinos. That said, here are some of the rewards of cashless transactions in today’s shifting financial landscape.
Convenience and Efficiency
One of the primary reasons for the growing importance of an electronic payment system is its unparalleled convenience and real time gross settlement of payables. Gone are the days of carrying bulky wallets filled with cash and coins. The public and market can make payments a breeze with cashless payment options, such as credit cards and mobile wallets like GCash and PayMaya. Public servants may also their payroll from the system.
Any payment system is straightforward and accessible 24/7. You can fund payments with a tap or a swipe, reducing the cost and time spent lining up to the bank or counting bills and coins or waiting for change—anytime, anywhere. This is especially beneficial for consumers for online shopping, where cash is not an option unless you opt for a cash-on-delivery (COD) payment system.
These payments also leave a digital trail, making it easy to track your spending. For travelers, cashless payments and international settlements negate the need to expose your local bank account, carry paper checks, or visit foreign currency exchange offices to learn about monetary policy and regulations, as well as systemic risk, and accumulate unnecessary transaction costs, saving time and reducing tax rates from conversion fees. Many cashless payment methods also offer automatic payment scheduling and reminders, ensuring bills are paid on time and avoiding late fees.
Enhanced Security
Carrying cash can make you a target for theft. Cashless electronic payments can safely store your money in digital form, protected by PINs, biometrics, or secure passwords. Cashless transactions come with various security features, making them a safer alternative to carrying cash. For example, if your cashless payment card is lost or stolen, you can quickly deactivate it, preventing unauthorized use.
Many credit card companies and payment providers offer fraud protection, which means you are not liable for unauthorized transactions. Payment systems employ advanced encryption techniques to secure your financial data, reducing the risk of data breaches and systemic risk.
Financial Inclusion
As cashless options become more widespread, reliance on physical cash decreases. This is particularly beneficial in regions where cash handling can be costly and risky. Cashless transactions can be conducted through mobile phones, which are increasingly prevalent even in remote areas. This same payment system allows citizens without access to traditional banks to engage in financial transactions.
Digital bank of transactions also has banks to enable microtransactions, allowing individuals to save small amounts of money electronically, which can be transformative for those living in poverty. Cashless transactions can bring financial services to underserved and unbanked populations, promoting financial inclusion.
Economic Efficiency
One of the surprising benefits of cashless transactions is that it also offers incredible economic benefits for individuals federal government, economy and society. Handling cash, including printing and distributing banknotes and coins, can add substantial costs for governments and financial institutions. Cashless transactions can reduce these expenses and convert the savings to revenue.
Cashless transactions can also stimulate economic activity by making it easier for businesses to accept payments, reducing friction in the marketplace, and encouraging spending
Digital systems are also more transparent than cash transactions. This transparency can reduce opportunities for tax evasion, corruption, and the informal economy. Governments, financial institutions, and businesses can more efficiently track financial transactions for tax collection and economic analysis, leading to better economic planning and development.
Environmental Impact
Another critical aspect of the cashless revolution is its potential for positive environmental impact. With fewer banknotes and coins in circulation, there is a reduced need for paper and metals, which can contribute to deforestation and mining-related ecological degradation.
The Future of Cashless Transactions
The importance of cashless payment transactions will likely continue to grow as technology evolves. The rise of contactless payment methods, including mobile wallets and contactless credit cards, makes cashless transactions even more convenient. This trend towards government payments will only become more pronounced and continue to reshape how we handle money and conduct financial transactions in the future.
From increased convenience and enhanced security to economic efficiency and environmental benefits, the importance of cashless transactions in our modern world cannot be denied, and the discussion of the subject can no longer be avoided. Embracing cashless transactions is not just a matter of convenience— but also a step toward a more efficient, inclusive economy, and sustainable financial future.
Camella, the Philippines’ largest homebuilder with presence across the Philippine islands, assures that every payment method, from reservation to monthly down payments and loan amortizations are safe, secure, and convenient. Partnered with established payment systems such as Aqwire and Maya, all homeowners have to do to is to link their banks, or source of funds with the Camella payment platform to automate payment transfer and processing and enjoy an additional blanket of security. Camella provides opportunities for hassle-free, safe, and seamless transactions to all its homebuyers.
Check out our House and Lot for Sale Properties
Discover our house and lot for sale properties in the Philippines
