Many people prefer cash because they got used to it and are unwilling to use new technologies. Other people are worried about the security of payments made by electronic means. In this regard, there are a number of measures that, once known and applied, help to avoid the risks of fraud and make payments in secure conditions. The National Bank of Moldova (NBM) tells about the advantages of cashless payments as part of the National Financial Education Campaign launched in partnership with the Independent Think Tank "Expert-Grup", IPN reports.
Cashless payments are any type of payment that does not involve the use of banknotes or coins in their physical form. These are electronic or digital payments made with cashless payment instruments. The payment card is one of the most popular and convenient cashless payment instruments. It can be obtained with the opening of a payment account and used in the country or abroad, at ATMs, stores or for online shopping. Also, the funds transfer is a way to transfer money from one payment account (including bank) to another account, without using banknotes or coins. This can be done with the help of the mobile phone, computer or an app to make the transfer quick and easy, directly between accounts.
“By having a payment account at the bank or a non-bank payment service provider, where we keep the money, we can make online purchases. It's simple – after selecting the product, we reach the payment stage. This is the option of funds transfer. Instead of using cash, it is possible to access the online banking application from the phone or computer and enter the store data, the payment amount and confirm the transfer. Direct debit is an automatic payment method whereby the bank or non-bank payment service provider, with the consent of the person who holds an account and available funds, can withdraw an amount from this bank account to pay bills or services," said the NBM.
Regardless of the currency in which the account was opened, card payment is accessible both in Moldova and abroad, physically and for online purchases. It allows for good financial planning and monitoring of expenses. In addition, by having a bank account and a mobile banking app, expenses can be easily analyzed and better managed.
The National Bank noted that cashless payments are also advantageous because one can often benefit from discounts or promotions. For example, there are many merchants that offer additional discounts on online payment or there are products related to payment cards that offer the option of "cash back" when paying by card to the service providers' partners.
In addition to advantages felt personally, cashless payments have benefits for the economy as a whole. Overall, cashless operations can play a crucial role in stimulating economic development and limiting many illegal activities.
