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How Cashless Payments Help Economies Grow
Report

How Cashless Payments Help Economies Grow

Markus Massi, Godfrey Sullivan, Michael Strauß and Mohammad Khan
Boston Consulting Group, 2019
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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • Background

Recommendation

Cash may still rule, but other claimants aspire to the throne. Digital payments are making significant inroads in economies around the world, according to Boston Consulting Group professionals in this incisive look at economic development. To promote global growth and a more transparent financial system, governments, financial institutions and businesses must address barriers to digital cash that include high costs, governance issues and cyberfraud. Financial industry leaders and policy experts would benefit from the many insights in this concise yet thorough analysis.

Summary

Cash is still the most prominent form of payment around the globe, but it is ceding ground to electronic payments.

Both cash and digital payments offer advantages and disadvantages. Cash is easy to obtain and use, immune to technological failures, and invulnerable to computer hackers. It also escapes the dragnet of big data and the lens of social scientists. Businesses cannot mine it for commercial objectives.

Yet, by its nature, cash has some drawbacks. Companies can conceal cash payments, creating tax revenue shortfalls. Banks spend large sums of money to process cash transactions and service automated teller machines...

About the Authors

Markus Massi et al. are professionals at the Boston Consulting Group.

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