The information from this article is based on an interview with Carlos Newton from the Trinidad & Tobago Financial Centre on the Straight the BATT live show.
Cashless Vs. Contactless Payments
According to Newton, what could be considered a cashless payment is any form of digital means of exchanging financial transactions such as electronically sending someone money for products or services without the use of cash. Newton went on to state that contactless payments include the use of cards that employ Near-Field Communication (NFC) or Radio Frequency Identification Technology (RFID) to enable payments. With contactless payments, you don’t need to swipe or insert your card, you can simply tap to pay.
What are the benefits of cashless and contactless payments?
- Decreased Wait Times
Cashless and contactless payments both reduce the length of time customers may spend at a cash register as well as improve the customer’s experience. Without the use of physical money, the customer does not have to spend time searching for notes and coins to pay for their products or services and, on the other hand, the cashier does not have to verify whether the physical cash is counterfeit or count the physical cash and then access change to give to the customer.
- Improved Hygiene
In recent years, hygiene has become a topic of concern, especially in regard to the transmission of viruses. Contactless and cashless payments eliminate the need for customers and staff to interact with physical cash which may be a hub for potentially harmful germs.
- Increased Security for Businesses
If your business is entirely cashless or contactless, there is no chance of theft or cash loss. There may no longer be any instances associated with shorts, overs, or the issuance of incorrect change from cashiers.
Additionally, businesses would no longer need to be concerned about receiving counterfeit money and the system is entirely under the supervision of management, and only managers have the authority to approve refunds.
How is T&T Shifting to the Cashless Reality?
Newton shared that the Trinidad & Tobago Financial Centre is working with several government ministries to allow for digital payments to access services. Namely, the Ministry of Works & Transport where citizens will soon be able to pay for their driver’s permits and renewals online.
Want to learn more about the shift to a cashless reality in T&T? Check out our video below:
This article is based on a discussion with Carlos Newton on the Straight off the BATT Live Series from the Bankers Association of Trinidad and Tobago. The show aims to help you understand financial literacy and education. Join our mailing list, here.