Although electronic means of paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More, are increasingly challenging cashMoney in physical form such as banknotes and coins. More, many people still prefer to pay with paperSee Banknote paper. More moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More, considering it more reliable and safer than latest technologies. The use of cash is even rising in many countries of the world, such as Indonesia and Germany.
In Indonesia, the growth in cash demand is mainly due to people’s distrust in digital transactions. Moreover, new regulations introduced by the government now require from providers to submit transaction details to tax authorities, causing customers to worry about their privacy. Last April, the Central Bank reported a 4% decrease in credit card transaction values, the first drop since 2010.
Privacy concerns also seem to be the main reason consumers reject electronic payments in Germany. A recent study led by the Bundesbank showed that almost 79% of payments are made in cash. What is more surprising, two thirds of people aged 14 to 24 said that they prefer to pay with real banknotes and coins – the age group that usually welcomes new technologies with great enthusiasm.
Other reasons stated for choosing cash over alternative payments were that it is easier to control one’s finances when one feels the money in his/her hands, and also that by using cash, one is certain that the payment is accepted anywhere.
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