Exploring the Advantages of Cashless Payment Systems: A Comprehensive Review

Exploring the Advantages of Cashless Payment Systems: A Comprehensive Review

Penn Marie Mezoh, Xingchi Zhou (Associate Professor)

School of Management, Wuhun Textile University, China

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8100047

Received: 14 September 2024; Accepted: 28 September 2024; Published: 30 October 2024

ABSTRACT 

Cashless payments are widely used for making payments between individuals and companies worldwide. Vendors have been drawn to these payment methods due to their perceived ease of use and low cost of transaction equipment. This study explores different payment methods and discusses the benefits of cashless payment, some drawbacks are mentioned for balance. The study systematically reviews several scholarly papers to assess non-cash payment methods and digital payment advantages. The method used in this study was based on secondary data that’s mainly a review of what other respected authors have published. No fieldwork was implemented aside from reading and comparing papers on cashless payment systems. The study discovered various digital payment approaches with advantages. Regardless of the difficulties encountered by users in the daily use of these e-money systems, the global trend is shifting towards a cashless economy. It is important to note that the cashless payment system is fast growing, and its benefits cannot be overlooked even though some downsides have also been recorded such as perceived risks, Insufficient security, the absence of government engagement in certain digital payment systems, such as Cryptocurrency, discourages financial institutions.

Keywords: Cashless Payments, Benefits

INTRODUCTION AND BACKGROUND

With the convenience of advanced technological gadgets, transactions may be effortlessly conducted through wireless technologies using mobile devices, such as smartphones. According to (Singh, Sinha, & Liébana-Cabanillas, 2020; Gupta & Arora, 2021; Kim & Park, 2020; Luo et al., 2021; Economic Times, 2022) the expansion of cashless systems in society is driven by consumer behavior, as people increasingly favor technology that offers rapid, convenient, and practical services. In the past two decades, electronic payment systems have garnered considerable attention due to their critical importance in modern electronic commerce. Mobile payments refer to the process of utilizing a mobile device to send money or funds from a payer to a recipient, either through an intermediary or directly. (Lonare, A., Yadav, A., and Sindhu, S. 2018). (Kirobo, et 2022, Rogoff, K. S. (2017) Non-cash payment systems refer to a range of mechanisms that allow transactions to be carried out without the use of real currency.

The available methods encompass Bitcoin, bank cards, QR codes, online payments, and mobile money. Nevertheless, despite their extensive use, these payment systems are linked to several disadvantages affecting consumers, sellers, and governments. (Ross Anderson 1993, Claudio Borio, 2019, and Lupo-Pasini, F. 2020), analyze the susceptibilities of cryptographic systems, encompassing those employed in non-monetary payment systems, emphasizing security hazards and possible disadvantages. The study examines the dual nature of cash, analyzing its role as a medium of exchange compared to its function as a store of wealth.

Cashless payments have a rich history dating back to ancient civilizations. Ancient Mesopotamia used clay tablets to track economic credits and debits (Morgan, 2016). The concept of non-physical cash has evolved. Bills of exchange allowed trade without cash in medieval Europe (Spufford, 1988). Paper currency and checks changed cashless transactions in the contemporary period. This expanded financial alternatives for individuals and corporations (Sullivan, 1975). In the mid-20th century, electronic payment methods revolutionized cashless transactions. Credit, debit, and Electronic Funds Transfer cards were introduced in the 1950s, making cashless purchases more widespread (Sefton, 2013). Internet and digital technology have increased cashless payments. This has led to online banking, e-wallets, and mobile payment apps (Anderloni et al., 2019). Modern consumers and organizations rely on electronic payment systems for purchases, transfers, and financial management (Chiu et al., 2018).  Since the rise of contactless payment technology, blockchain-based cryptocurrencies, and peer-to-peer payment systems, cashless transactions have increased. This has opened new financial opportunities and challenges (Ghosh & Mandal, 2020). Cashless payments will continue to rise as technology advances and customer preferences change, altering the future of commerce and banking in the digital era.

The aim is to identify the advantages associated with these payments to propose recommendations for the successful implementation of non-cash payments. The study focuses on non-cash (cashless) payment methods, which allow for transactions to be made without the need for physical currency. The options encompass digital currencies, paper payment instruments, debit and credit cards, electronic transactions, and mobile financial services. There are disadvantages linked with the utilization of these approaches, including those experienced by customers, sellers, and the government.

MATERIALS AND METHODS

Research Method

Academic databases Google Scholar, Science Direct, and Web of Science were searched for relevant studies. Search terms included “cashless payment,” “electronic payment,” and “cryptocurrency”. English peer-reviewed cashless payment system publications were selected using inclusion criteria. Titles and abstracts were screened, and then full-text eligibility was assessed. A standardized form collected study features, methodologies, and main results on advantages, obstacles, and outcomes. Methodological rigor and bias risk were evaluated in the included research using known processes. A narrative synthesis examined study differences and trends. Grey literature was found on Google Scholar and ResearchGate, yielding 350 papers. To fit the topic, 150 were chosen. A detailed examination of cashless payment systems was conducted using PRISMA principles for transparent reporting. Situation analysis, cashless approaches, and their pros and cons were examined in the literature.

Research Question and Objective

The research question that guided the study is focused on assessing what advantages are associated with the adoption of cashless payment systems. The main aim of the paper is to conduct a comprehensive analysis of the benefits provided by cashless payment systems across diverse industries and sectors.

LITERATURE REVIEW

Adoption of Cashless Payments Worldwide: A Situation Analysis

Introduction

Since the onset of Internet banking and shopping, the electronic payment system has grown. A network-based electronic payment system lets people buy goods and services online. Non-cash payment devices are growing more popular due to their ease, efficacy, and efficiency. Modern technology offers many cashless payment solutions. These methods are evolving and diversifying. Electronic money use has improved in recent years. Indo had 292.2 million instruments in 2019, eight times more than before. (Talom, F., Subramaniam, K., Karim, M.W., and Titalessy, P. B. 2020).  Communication, education, business, agriculture, healthcare, and more have been greatly impacted by technology. Technology has many benefits, but it may also enable crime. (A. Beck, M. Hopkins 2016). Advanced technology has changed how organizations operate, especially in daily payment interactions. As consumers gain the necessary knowledge and resources to utilize cashless payments, their willingness to adopt this method increases. Some findings have suggested that technology security is a crucial factor in the adoption of cashless payment. This variable has been discussed in previous literature (Roche, 2019; Bertsch, 2019), where it was highlighted that perceived technology security plays a crucial role in enhancing business success. (Rahman, M., Ismail, I., and Bahri, S. 2020). These advanced innovations have significantly altered customers’ perspectives on monetary value. Cashless payments provide a multitude of benefits in comparison to traditional currency. An advantage is the reduction in thefts and other criminal activities associated with cash transactions (Armey, Lipow, & Webb, 2014, pp. 46–57). Likewise, cashless payments provide benefits for contractors. Implementing various payment options helps optimize income and streamline operations, resulting in cost savings. (Grzelczak, M., and Pastusiak, R. 2020).

Previous findings have it that the long-term effects of adopting cashless payments on economic growth can only be observed over an extended period (Singh et al., 2020, Kim & Park, 2020). Therefore, promoting cashless payments in many countries will not yield immediate economic results. In addition, the effect of cashless transactions on economic growth can vary depending on the method of conducting these payments. Despite the established evidence of a positive relationship, the exact strength of this relationship remains elusive and challenging to quantify. According to a study conducted by (Ipsos 2020, and Suat et al 2022, Anna et al 201, Grzelczak, 2022), the digital wallet has gained significant popularity among consumers in Indonesia, particularly among the millennial generation. A significant number of millennials residing in urban areas are keen on utilizing digital wallets for online transactions and shopping. Their motivation stems from the attractive cash-back promos and discounts offered (Titalessy, P. B. 2020).

As per the European Central Bank’s report During the analysis conducted in January 2024, it was observed that the number of e-money payment transactions within the euro area experienced a 6.9% increase to reach 4.4 billion in the first half of 2023, compared to the same period in 2022. These transactions’ corresponding value rose 7.0% to €0.2 billion. Card-based e-money payment transactions comprised 9% of the total, while e-money accounts accounted for 91%. In terms of value, the split was 11% to 89%. Consumers tend to lean towards safer options when selecting their preferred payment method, as evidenced by their preference for debit cards over credit cards. Those debit cards are probably connected to accounts with lower balances to minimize the potential impact of fraudulent transactions. Wallets and prepaid cards are also favored because they offer a reduced risk of loss compared to other payment methods (M. Rahman et al. 2020).

The figure below depicts the estimated global volume of cashless payments from 2021 to 2027, divided into main regions: APAC, Europe, North America, Latin America, and the Middle East and Africa (MEA). The graphic shows strong growth in all regions, with a global Compound Annual Growth Rate (CAGR) of 15.0% between 2022 and 2027. Notably, the Asia-Pacific (APAC) region has the fastest growth rate, with a CAGR of 19.8%, while North America has a more modest increase of 6.5%. The graphic also shows how each area contributes to global transaction volume, with APAC and Europe leading in volume, especially in later years. By 2027, the overall volume of transactions is estimated to reach 2,297 billion, demonstrating the growing adoption and expansion of cashless payment systems around the world.

This figure presents a bar chart showing the growth and projected volume of Digital Payments from 2021 to 2027 across different global regions.

Figure :1 Global and Regional Growth Projections of Digital Payments (2021–2027)

Sources: “Capgemini Research Institute for Financial Services Analysis, 2023; ECB Statistical Data Warehouse; BIS Statistics Explorer; Countries’ central bank annual report.”

Note: “Forecasted figures were used when data was unavailable. Figures are forecasted for 2022 and beyond”.

According to this report, the volume of non-cash transactions is expected to experience a significant growth rate of 15% annually from 2022 to 2027. This growth results from the growing demand for instant payment schemes, initiatives to establish connections between payment infrastructures globally, the increasing use of ISO20022, and the introduction of new payment methods like wallets, QR code payments, and A2A payments.

Types of Cashless Payment Methods

Regardless of the nature of your business, whether it’s a retail store, restaurant, or a freelance/service-based profession like dentistry, accounting, or online marketing, there are various options for accepting cashless payments. Cashless payments are here to stay. In today’s digital age, cashless payments are gaining popularity among businesses and consumers due to the advancements in technology. We have transitioned from frantically rummaging through our luggage in quest of loose cash to actively seeking out an automated teller machine (ATM) to conveniently make a payment by just touching our card at a point of sale. However, there is one aspect that we can always count on remaining constant, and that is our shared desire for convenience. Payment trends and alternatives will undoubtedly continue to evolve, offering increased flexibility and enhanced security.  From this, we will examine the various modes of digital payments that are available including credit/debit cards, mobile payments, digital wallets, peer-to-peer payments (P2P) WeChat, Alipay, Internet Banking, and cryptocurrency (K. Vipin and M. Sumathy, 2017, D. Rajesh, M. Arpana Sagar, and N. Roshitha 2022, Alexis Damen 2023,).

Credit/Debit Cards

Debit cards, often known as cheques or bank cards, provide a convenient alternative to cash for purchases. Usually, the card has the bank’s name, a card number, the cardholder’s name, and an expiration date, which can be found on either the front or the back of the card. In the present day, a significant number of cards are endowed with a chip that allows users to make payments conveniently. This can be achieved by inserting the card and entering a PIN, like swiping the magnetic stripe or simply tapping the card (contactless). Debit cards operate by necessitating that the cardholder have an adequate amount of funds in their bank account at the time of purchase. Upon completion of the transaction, the funds are promptly transmitted from the account to the merchant’s account (Nancy Lloyd 2000; Scott Bronstein 1985). The latter possesses numerous advantages that render it very dependable for most users in comparison to un-embossed cards. There has been a noticeable increase in the banking cards market with more people using cards and making transactions. The growth can be attributed to various factors, including generous credit limits, user-friendly interfaces, promotional efforts by financial institutions, improved customer service, the availability of e-banking or m-banking services, and the seamless integration of banking services (O. Dospinescu and B. Anastasiei 2019 S. S. Rodrick, 2019).

This graph demonstrates financial data over time.

Figure 2: Projected Growth of the Cashless Payment Market (2019–2031)

According to recent data, the global credit card payment market is expected to experience significant growth in the coming years. It was valued at USD 461.0 billion in 2023 and is projected to reach USD 960.6 billion by 2032, with a compound annual growth rate (CAGR) of 8.5% during the forecast period of 2024-2032. The increasing trend of online shopping is significantly impacting the market share of credit card payments.

Digital Wallets

In the current dynamic digital environment, digital wallets, alternatively referred to as e-wallets or mobile wallets, have emerged as a fundamental component of contemporary payment systems. Electronic systems enable users to digitally store, manage, and transact with their payment information, providing a versatile, secure, and convenient substitute for conventional payment methods (Singh, N.et 2020). Industrialized nations widely use this payment method due to its user-friendly nature, minimal perceived risks, and ubiquitous accessibility through mobile devices (Agrawal, S. 2021). The prevalence of smartphones and the advancement of safe mobile payment software have greatly contributed to the extensive acceptance of mobile payments. Users can expedite transactions efficiently and conveniently without the necessity of tangible currency or cards, boosting the user experience and mitigating the risk of theft or misplacement. Furthermore, the development of security technologies, such as biometric authentication and encryption, has reduced perceived dangers, hence increasing customers’ confidence in mobile payments (Kumar & Bansal, 2019). Moreover, incorporating mobile payment systems into diverse financial services and e-commerce platforms has made them easily available in various environments, from physical retail establishments to virtual online marketplaces.

Peer-to-peer

These payment transactions, often known as person-to-person or P2P payments, include the digital transfer of money from one person to another using a P2P payment application as an intermediary (Burt, 2018). It offers a seamless and efficient way to send and receive money using mobile devices or home computers with Internet access. It’s a modern payment method that provides a convenient alternative to traditional options (Huang & Benbunan-Fich, 2018). The P2P payment application links to each user’s bank account. When a transaction occurs, the application’s account balance keeps a record of the transaction and either moves or deducts funds directly from the user’s bank account or stores them within the user’s account in the application (Burt, 2018). Ever since this idea took off, many companies have jumped on board with P2P transaction capabilities, ramping up the competition in the industry and making life easier for consumers (Huang & Benbunan-Fich, 2018). With the increasing popularity of mobile devices, there is a growing demand for P2P payment applications to enhance user-friendliness (Andrew Bloomenthal 2024). According to research by (Li et al. 2020), P2P cashless payment systems offer advantages such as lower transaction costs, increased transparency, and reduced reliance on cash, thus driving the adoption of digital financial services worldwide.

Mobile Banking

Mobile Banking (MB) is a service provided by banks or financial institutions that allows users to do a range of financial activities using a mobile device, like other mobile wallet techniques. An app, usually given by banks or financial organizations, is used to access accounts and perform various operations, such as making payments (Ahmad & Ahmad, 2019). Mobile banking has made banking services accessible to a wider population by enabling them to be used on mobile devices, enabling transactions to be conducted at any time and location without the necessity of visiting a physical bank. Nevertheless, this easy payment method has also become susceptible to criminal activity such as phishing, fraud, and theft (Kshetri, 2019). These security concerns emphasize the significance of installing strong security measures to secure mobile banking transactions and users’ financial information from dangerous individuals (Alam, M.M., et al 2021).

Internet Banking

Internet banking uses the Internet to undertake banking transactions (Indrasari et al. 2022; Manohar et al., 2020). The internet connects clients to the bank in this operation. The transactions are also done online. (Dangaiso et al 2024). released a major Internet banking platform recommendation in 2024. The guideline advises that these platforms provide user-friendly guidance to help clients navigate the customer journey. These steps are the website/app home screen, money transfer list, transfer details, transaction confirmation, password entering, OTP authentication, and transaction notification. A traditional customer journey mapping with e-transactions should include user-friendly training materials to boost customer satisfaction. This includes in-person encounters between consumers and bank professionals like those from Bank Indonesia’s Directorate of Study and Arrangement Banking.  (Dangaiso et al 2024), made a major recommendation for Internet banking platforms. The guideline advises that these platforms provide user-friendly guidance to help clients navigate the customer journey. These steps are the website/app home screen, money transfer list, transfer details, transaction confirmation, password entering, OTP authentication, and transaction notification. Traditional customer journey mapping with e-transactions should include user-friendly training materials to boost customer satisfaction.

Cryptocurrency and Blockchain

Cryptocurrency is a digital currency that relies on a cryptographic system. (Ahamad, S., et al. 2016) Cryptocurrency facilitates the transmission of funds between individuals using a decentralized encrypted network, hence eliminating the need for intermediaries to confirm and verify transactions. (Alqaryouti, O., et al. 2019). Cryptocurrency and blockchain technology have attracted considerable interest in the current economic landscape. In 2008, Nakamoto presented Bitcoin in a significant whitepaper, explaining its fundamental blockchain technology, which has had a profound impact on the world of cryptocurrencies. In his 2015 publication, Yermack conducts an economic assessment of Bitcoin, examining its capacity as a currency and its functions as a medium of exchange, unit of account, and store of value. (Catalini and Gans 2016) examine the wider economic consequences of blockchain technology beyond cryptocurrencies, specifically analyzing its effects on market organization, innovation, and the expenses associated with transactions. (Gandal et al. 2018) examine the occurrence of price manipulation in the Bitcoin market and its consequences for market integrity and regulation. (Hileman and Rauch’s 2017) comprehensively analyzes the worldwide cryptocurrency industry, including its market size, regulatory framework, mining activities, and various applications. (Böhme et al. 2015) offer a comprehensive analysis of Bitcoin from various disciplines, including economics, technology, and regulation. (Cong et al. 2019) analyze the capacity of blockchain technology and smart contracts to cause significant changes in several industries (Lee & Hong, 2023).

Decentralization, exemplified by Bitcoin and other cryptocurrencies, enables trustworthy transactions between parties who inherently lack trust, using an open network (Nakamoto, 2008). In addition to cryptocurrencies, blockchain technology may be applied to numerous transactions, removing intermediaries, and guaranteeing data integrity, security, and anonymity. This makes it highly attractive for general use (Swan, 2015). Nevertheless, the mining process, which plays a vital role in confirming the legitimacy of cryptocurrencies using proof of work, is notably sluggish, impeding its incorporation into many industries (Tapscott & Tapscott, 2016).

QR Code Payments

This method involves Payments made by scanning a QR code through mobile apps, often linked to an e-wallet or bank account (popular in apps like Alipay, WeChat Pay, Paytm).  China has quickly adopted this mode of cashless payment systems, setting the pace for digital transactions worldwide. Given the growing popularity of mobile payment platforms such as Alipay and WeChat Pay, cash is becoming less relevant in our daily transactions (Gao & Li, 2021). These mobile payment apps provide a seamless and streamlined experience, enabling users to conveniently make payments for purchases, transfer funds to loved ones, and even explore investment opportunities—all within a single application. The cashless payment system in China has completely transformed how people handle their finances, with QR code-based payments now being used everywhere from retail stores to restaurants and even street vendors (Zhang & Wen, 2020). In addition, the Chinese government has been actively encouraging the adoption of digital currencies. They have introduced the digital yuan, also known as e-CNY, to speed up the shift towards a society that relies less on cash (BIS, 2021). Although there are concerns about the potential risks associated with using mobile payment methods, WeChat has been used by over one billion individuals in China. This app integrates the features of multiple programs, including WhatsApp, Facebook, Twitter, and Instagram, into a single, robust platform. (Szurawitzki, M. 2022).

The Use of Technology Acceptance Model (TAM) in the Adoption of Cashless Payments

The Technology Acceptance Model (TAM) is a useful paradigm that helps us analyze and forecast the acceptance of cashless payments. The Technology Acceptance Model (TAM) suggests that users’ attitudes and intentions toward adopting new technologies are influenced by their perception of how easy the technology is to use and how beneficial it is. Perceived ease of use in the realm of cashless payments refers to the perceived level of simplicity and convenience associated with utilizing cashless payment methods. On the other hand, perceived usefulness pertains to the perceived benefits and advantages that cashless payments offer compared to traditional methods.

Employing TAM, numerous studies have investigated the variables that influence the adoption of digital payments by consumers. For example, a study conducted by (Smith et al. 2018) revealed that consumers’ intentions to implement mobile payment systems are significantly impacted by their perception of ease of use. In this regard, user interface design and transaction speed were identified as pivotal determinants. Furthermore, the significance of perceived utility in influencing adoption behavior has been emphasized; individuals are more likely to embrace cashless payment systems if they perceive them to be advantageous in terms of transaction facilitation and additional benefits (Jones & Lee, 2019).

Figure 3: Technology Acceptance Model (TAM, Davis 1989)

The empirical results obtained from these studies highlight various factors that have an impact on the adoption behavior of consumers. Trust and security are of the utmost importance, as the adoption decisions of users regarding digital payment systems are significantly influenced by their perceptions of the systems’ trustworthiness and security (Lee & Chang, 2020). Furthermore, social influence is of paramount importance, as it is through peer recommendations and adherence to social norms that individuals form attitudes and develop intentions to embrace electronic payment systems (Wang & Tang, 2017). In general, when TAM is applied to the adoption of cashless payments, it provides insightful information regarding the factors that influence user acceptability. This knowledge can then be utilized to improve the usability, utility, and ultimately, adoption rates of cashless payment systems.

RESULTS

The goal of this review was to investigate the benefits associated with cashless payment systems. The paper identified some commonly used cashless payment systems in different parts of the world. Also, several advantages of cashless payment systems, including increased convenience, efficiency, and security for both consumers and businesses. In addition, the use of cashless payment has promoted financial inclusion by providing access to banking services for unbanked populations. Additionally, issues related to interoperability, regulatory compliance, and consumer trust pose significant challenges to the widespread adoption of cashless payment systems. To fully harness the benefits of cashless payment systems and promote global access to digital financial services, it is crucial to address the challenges that come with them.

Benefits of Cashless Payments

The study has revealed the following benefits of a cashless economy

• Cash payments are convenient, could expedite transaction time, and are timesaving in nature, but they also to their potential to decrease the circulation of physical currency within society. The less the amount of physical money in circulation will indirectly affect the inflation rate.
• Cashless payments provide businesses and consumers with a convenient alternative to carrying physical currency. Transactions can be executed efficiently and expeditiously via mobile devices, online platforms, or physical stores when cashless alternatives like mobile wallets and contactless cards are utilized (Gans, J. S., & King, S. P. 2016).
• When compared to cash deals, payments that don’t involve cash can be safer. A lot of digital payment methods have security features like biometric authentication, encryption, and tokenization that make them harder to steal, lose, or fake.
• Very easy to distribute money anywhere, anytime, to anyone regardless of the physical infrastructure.
• Efficiency: Cashless payments reduce the time and resources required for cash handling, counting, and reconciliation, thereby streamlining transaction processes for businesses. Cashless payments have the potential to streamline transaction procedures for customers and eradicate the necessity for manual documentation (Rysman, M., & Schuh, S. 2017).
• Cashless payment methods such as contactless cards and mobile wallets enable contactless transactions, reducing physical contact and the risk of transmitting contagious diseases, particularly during public health crises such as the COVID-19 pandemic.
• Cashless payments have a diminished ecological footprint in comparison to cash transactions, as they mitigate the necessity for the creation, transit, and disposal of paper currency. Adopting cashless payments can support sustainability initiatives and decrease carbon emissions linked to cash management procedures.
• Digital payment platforms and mobile banking apps allow individuals without traditional bank accounts to send, receive, and store money securely. This is done by promoting financial access to banking services for unbanked and underbanked populations (Beck, T., & Cull, R. 2014).

DISCUSSION AND CONCLUSION

The immense potential of the digital realm has captivated billions of investors. In the current economic climate, there is a widespread shift towards digitalization to harness new technical advancements across all sectors. The adoption of cashless payment should be driven by the perceived benefits of the stakeholders, rather than solely by the presence of technology. Most individuals have apprehension when it comes to making incorrect choices, as this might result in the heightened uncertainty of losing their assets, without knowing the nature of the risks they may encounter. Various theories and models propose the optimal method for adopting new technology and provide the most effective approach to successfully embrace any novel technological advancements. A prominent model in the field of technology acceptance is the Technology Acceptance Model (TAM) (Calderón-Fajardo, 2022). Researchers have extensively utilized this model/theory to propose the appropriate course of action for any industry before implementing new technologies. (Abdulkadir, K., et al. 2022). The transition to a cashless economy is a global movement propelled by technical breakthroughs and changes in consumer behavior. These technologies make transactions more convenient, secure, and efficient, which benefits consumers, corporations, and governments. However, issues like technology security threats, privacy concerns, and infrastructural investments exist. Despite this, the use of cashless payments is expanding. To fully realize the benefits of a cashless economy, future initiatives should include strong security measures, privacy protection, and inclusive infrastructure development. The move to a cashless society provides numerous benefits and opportunities for innovation and economic progress. Further research and careful adoption of cashless payment systems will be critical for navigating this difficult landscape. Many researchers have used TAM extensively.

Implementations and Recommendations for Cashless Payment Systems

Cashless payment systems are crucial for modern financial infrastructures, promoting financial inclusion and transparency. Successful implementation requires careful consideration of technology, user experience, security, and regulatory frameworks, ensuring long-term viability.

• Building of Infrastructure Development such as establishing interoperability standards to safeguard seamless transactions amidst different platforms and devices.
• Set up regulatory frameworks such as executing stringent data protection to safeguard users’ information and boost trust in cashless payment.
• The public should be educated through conducting campaigns and digital literacy on the usage of cashless payment.
• Operating blockchain for secure, transparent, and efficient transactions and using Artificial Intelligence (AI) and Machine Learning (ML) for Leveraging fraud detection and personalized financial services

RECOMMENDATIONS

• Trust and security should be enhanced through the implementation of biometric authentication methods such as fingerprint and facial recognition to enhance security. Real-time monitoring systems to detect and mitigate fraudulent activities promptly should be established.
• Accessibility and inclusivity should be promoted by enhancing affordable access to smartphones and internet services and developing multi-language support payments to cater to a diverse population.
• Increase research and development investment in exploring new technologies and updating existing systems with constant feedback.

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