We’ve likely all had similar shopping experiences during the pandemic – being offered contactless payment options at retailers, placing more online and pickup orders, and generally keeping less cash in our wallets. But if you’re like me, you’ve been having those experiences all along; there’s just been a really significant increase over the past year.
Cashless forms of payment usually result in faster transaction times and are generally more hygienic, two factors that make the option more appealing during a time when we’ve been asked to limit exposure to other individuals. For everything else that it’s affected, the pandemic has certainly accelerated the path we’ve been moving down for some time, that of a cashless society. For financial institutions to succeed through this transition, here are a couple of key considerations:
As newer currencies like Bitcoin and Dogecoin are increasingly accepted by merchants, there’s a likelihood that financial institutions will see a demand for such assets to be included in their operations. Opportunity exists to start adapting processes now to prepare for future demand.
An increase in the number of electronic payment methods brings about additional cybersecurity concerns. Digital currencies have lower levels of regulation than traditional forms of payment and are a more appealing target for cybercriminals. Plus, newer forms of technology can often be more susceptible cyber threats. An institution’s means of cybersecurity should be assessed regularly for new and evolving technologies.
While the exact outlook may appear to change almost every day, the continued shift toward a cashless world is likely inevitable. If you have any questions related to this topic or would like to learn more about our Risk Advisory Financial Services or Cybersecurity teams and related offerings, please contact us at [email protected].
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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].
Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.