The Effects of Cashless Policy on stakeholders in the Economy

[Yakub02]

The effects of Cashless policy on various stakeholders in the National business and the economy cannot be overemphasized. The stake holders are as stated as follows.

- Consumers.- consumers will need to adapt to using digital payment methods such as mobile wallets, debit and credit cards, and digital banks.

- Small businesses -Small businesses may struggle to implement cashless systems, as they may not have the resources to upgrade their technology or hire trained personnel. Retailers will need to invest in point-of sale systems that accept digital payments and implement security measures to prevent fraud and data breaches.

-Financial Institution- Financial institutions will play a crucial role in the transition to a cashless economy, as they will be responsible for processing digital transactions and ensuring the security of consumer data.

-Cash-based Businesses- Businesses that rely on cash transactions, such as street vendors and small shops, may be disproportionately affected by the transition.

-Government-The government will be responsible for creating regulations and overseeing the implementation of a cashless policy, as well as ensuring that all citizens have access to digital paying methods.


As it is , it is crucial for the government to ensure all those at the helms of affairs as as the the cash disbursement to the members of the public are concerned should be on their toes to make all necessary correction as the overall effect might lead to loss of assets and properties of individual and the government . if the situation becomes worse it may have a serious set back on the masses at large.

 

[Jasz]

Diverse economic stakeholders may be significantly affected by the implementation of a cashless policy. Some of the main effects are as follows:

Consumers: A cashless policy may improve convenience, speed up transactions, and reduce the likelihood of theft and fraud for customers. However, it can also be difficult for those who do not have access to digital payment methods and are unbanked or underbanked.

Banks: A cashless policy might encourage more people to use digital payment methods, which could make banks more money from transaction fees and other financial services. It also has the potential to raise the demand for banking services like account opening and loan products.

Merchants: A cashless policy can make transactions easier, save money on handling cash, and improve security for businesses. However, it can also be challenging for businesses that are unable to accept digital payments or have cash-only customers.

Governments: By making financial transactions more visible and reducing the informal economy, a cashless policy can increase tax revenue for governments. Additionally, it has the potential to improve financial stability while simultaneously cutting production and distribution costs.

Providers of payments: As more consumers and businesses adopt digital payment methods, a cashless policy may present a growth opportunity for payment service providers. However, as new players enter the market and established providers face increased pressure to innovate, it can also increase competition.

In conclusion, a cashless policy may have both positive and negative effects on economic stakeholders. It can be more convenient, increase financial stability, and save money, but it can also be hard for people who don't have a bank account or prefer to use cash. A cashless policy must be implemented in a way that benefits all stakeholders, especially those who are vulnerable or excluded, for it to be successful.