Humans have come a long way. For centuries, our ancestors used the barter system as a method of transaction. Then gold and money were discovered and used as the medium of exchange. Today, we’re talking about a cashless society.
So, what is a cashless society? Simply put, it’s a world where humans trade and make payments without carrying any cash. Every payment will be done digitally, which means that banks won’t print money anymore.
Is it good? Is cashless payment the way to go? Before we make any verdict, let’s take a closer look at what cashless payment actually is.
What is Cashless Payment
Cashless payment is a method of trading that involves no physical money, be it coins or banknotes. Payments will be done using cards (credit, debit, smartcard, etc.), smartphones (Apple Pay, Android Pay, Google Wallet, etc.), and even human facial recognition (in China).
Some banks and retailers call this method “Tap-and-Go” because of its simplicity and convenience. Say goodbye to those banknotes and clunky coins that you have to carry around in your wallet.
How Does Cashless Payment Work
Here are the technical steps of cashless payment:
- A card or smartphone is placed near a cashless payment terminal within 4 cm or 1 ½ inc
- Then the terminal will read the chip of the card or digital wallet in the phone and transmit the data to a card-processing network like Visa or Mastercard.
- The network will run a fraud analysis to look for any suspicious activity. After it’s clear, a confirmation will be sent to the card issuer.
- The card issuer will confirm that the card isn’t stolen and has sufficient funds to continue the transaction.
- This confirmation will be sent back to the terminal.
- Your payment is accepted. All of this is done in just 2-3 seconds.
Now that you get the hang of what cashless payment is, let’s talk about its benefits and drawbacks.
The Benefits of Cashless Payment
Better customer satisfaction
Cashless payment speeds up the entire process of a transaction. That means less waiting time and shorter queues in restaurants and stores. As a result, customers will be more satisfied with the service.
More loyalty programs
Brands who use the cashless payment system usually give more rewards and discounts for customers. One of the best examples is the Starbucks Rewards program which gives cashback, discounts, and even free beverages for loyal customers that keep paying with a Starbucks card.
A Convenient means of payment
As mentioned before, the cashless payment enables people to go shopping without carrying any cash. They can just bring a card, sticker, smartphone, or even bring nothing but their face to pay for something.
The Drawbacks of Cashless Payment
The technology isn’t perfect
No matter how hard we try, our creation will never be perfect, including technology. Sure, it will work 99% of the time. But there’s a 1% chance that an error will occur in the cashless system. When that happens, people can’t pay and merchants can’t receive payment, meaning that the economy will be hampered.
Easier to overspend
When we pay with cash, we can physically count our expenses. That’s not the case with cashless payment. Because it’s so convenient and easy to use, people are more likely to overspend when using digital payment.
Harder for older people to understand
The older generation grew up with gold and cash, so the concept of cashless payment might be a little too strange for them. Plus, some of them don’t even have a bank account or a smartphone. It will take extra effort to introduce cashless payments to older people.
Is Cashless Payment Safe?
Movies often portray that stealing information from somebody’s card is easy. In reality, it’s not. Nowadays, cards are equipped with EMV chips, making it super hard to be hacked. On top of that, cashless cards are also secured thanks to their encrypted 16-digit account number.
Although technology isn’t perfect and it’s not 100% guaranteed that hackers can’t access your digital wallet and personal info, it’s still safe enough that they can’t clone a card or make purchases using your card.
Digital apps like Apple Pay and Android Pay have also upped their game by implementing safeguards to make sure that no one is gonna take your money. Now, before you decide to go fully cashless, always remember these two things:
- Wipeout all of your details if you lose your iPhone using the “Find my iPhone” app. If you use an Android phone, then you can relax a bit. Android Pay never transmits your credit or debit card number and instead use a virtual number. So, your private information is safe.
- Don’t overspend. Yes, it’s hard to stay on track with your budget with the convenience of tap-and-go. But, it doesn’t mean that it’s impossible. There are a few things you can do to control your expenses, such as using a prepaid card, setting up spending notification, canceling unused subscriptions, as well as having the commitment to limit yourself.
Cryptocurrency Market Report 2020: Technology, Applications and Implementation for Financial Services
TCS Positioned as a Leader in Capital Markets Operations by Everest Group
Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), a leading global IT services, consulting and business solutions organization, has been recognized as a Leader in the Everest Group PEAK Matrix™ for Capital Markets Operations1.
In an assessment of 24 global service providers offering capital markets operations services, TCS was placed highest for Vision and Capability, as well as Market Impact. Additionally, it was named a Star Performer for having top quartile year-on-year improvement in its scores.
TCS’ strong position in the overall capital markets segment is attributed to consistent growth in its portfolio with multiple new wins. According to the report, the company has continuously worked on creating solutions backed with the latest technology to help its customers solve operational problems more efficiently. It mentions TCS BaNCS™ Cloud for Asset Servicing that automates the servicing of multiple asset classes across custodians, brokerages, asset managers, and investment banks. The report also highlighted a successful POC where TCS powered the world’s first cross-border securities settlement between two central depositories using Quartz™ Blockchain.
“With growing competition in the capital markets segment, customer preference for digital channels, and increasingly complex regulations, financial institutions are banking on innovative use of technology to stay ahead,” said K Krithivasan, Business Group Head, Banking, Financial Services and Insurance, TCS. “This recognition from an independent third-party research firm is a testament to our vision, capabilities, services offered, and market impact.”
TCS offers a comprehensive portfolio of services in the capital markets domain. Its customers include over 85 buy and sell side firms as well as market infrastructure firms and custodians. TCS’ in-depth domain solutions cover all functions and include:
- Front Office: Research and analytics, channel management support, para planning for wealth management customers
- Middle Office: Post trade processes including trade affirmation / confirmation, pricing and valuation, portfolio accounting and reconciliations
- Back Office: Settlements, reconciliation and fails management accounting including fund accounting, fund administration, and transfer agency
Guided by its Business 4.0TM thought leadership framework and the Machine First™ Delivery Model (MFDM™), TCS has made steady investments and developed frameworks, point solutions and showcases. These include the wealth and retirement platform on TCS BaNCS, a wealth advisory solution, robo advisor and event fusion solution, conversational agents powered TCS’ proprietary tool Conversa™, interactive customer reporting, X code, and distributed ledger technologies for corporate actions, among other blockchain, robotic process automation, platform modernization-based frameworks.
“In an environment shaped by changing user preferences and pressure from fintechs, it has become critical for financial institutions to connect their front- and back-office functions seamlessly,” said Manu Agarwal, Practice Director, BFS Business Process Services, Everest Group. “Supported by strong operational expertise and digital offerings, TCS enables its customers to deliver this superior experience.”
“Our rich experience in capital market services, regulatory knowledge, innovative offerings backed by the latest digital technologies, and deep contextual knowledge places us in a strong position to deliver exponential value to our capital markets customers,” added Krithivasan.
SOURCE Tata Consultancy Services
Huobi Token (HT) Reaches New High Amid Increased Adoption and Ongoing Ecosystem Development
Huobi Global today announced that Huobi Token (HT) has reached a new 12-month high amid the continued growth and development of the whole ecosystem. As of yesterday, HT was trading at a token price of $5.27 USD, a 92% increase since the close of 2019 – and nearly a 5X increase compared to this time last year.
As the native token of digital asset exchange Huobi Global, HT’s new milestone underscores the recent progress of Huobi’s global ecosystem. Last month, Huobi Global and Huobi DM experienced a strong start to 2020 with a 65% month-over-month spike in aggregate trading volume.
Huobi has also transitioned from quarterly to monthly token burns, which are based on a percentage of Huobi Global and Huobi DM’s revenues for each corresponding period. For Huobi’s first monthly burn, 4.057 million HT were repurchased and destroyed in January, which has a current market value of $21.4 million USD. A total of 45.838 million tokens have been burned to date.
“2020 is a pivotal year for Huobi as we enter new global markets and continue expanding our product line-up for both institutional and retail audiences,” said Ciara Sun, Vice President of Global Business at Huobi Group. “HT is a foundational part of the Huobi ecosystem, so we are deeply committed to its success.”
HT Product Roadmap
As part of a longer-term strategic roadmap for HT, Huobi has a number of upcoming initiatives planned that aims to further increase the token’s utility for the broader blockchain and crypto community.
Huobi DM’s new Perpetual Contract product, which is currently undergoing internal testing and nearing public launch, will be incorporated into the HT Token Burn Program. HT will also play an integral role in the ecosystem of Huobi Chain, a regulator-friendly financial blockchain that’s slated for testnet launch in the near future.
Additional features in development include HT margin trading with up to 2X leverage, which is expected to launch in March, and collateralized HT for peer-to-peer crypto lending and pledged loan contract assets.
HT Ecosystem Adoption
To further expand HT’s utility beyond the Huobi ecosystem, Huobi is accelerating efforts to integrate with third-party partners, including international credit cards, digital bank cards, blue-chip technology companies, and global entrepreneurship centers.
HT was recently accepted as a payment option for charitable donations to Project HOPE, a global nonprofit organization that has been providing health development and emergency relief since 1958. Last month, Huobi partnered with a leading crypto-friendly hotel booking platform to integrate HT as a preferred payment method on Travala.com.
SOURCE Huobi Group
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