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With an 87% FinTech adoption rate globally, the Indian FinTech market is growing rapidly. The FinTech industry is providing people with facilities they have never experienced before. People have got habitual of the convenience with a spoonful of luxury in performing day-to-day activities digitally. When it comes to making payments, cash has been dominating the market ever since people started exchanging things for money. However, the way tables have turned is applaudable. Cash, which people would love to keep in their pockets/wallets/purses has turned into a digital instrument. People are still carrying cash but in its modern digital-cashless form. The transformation of paper money into digital money is taking over the world and the Indian population is no exception.

The FinTech industry is just not only giving a push to the digital way of making payments, but rather it is developing new ways to make digital payments easier, more beneficial and safer. In accordance with the progress India is making in bringing payment services to the threshold of every Indian household with the help of technology, India is to become the third largest FinTech market by 2025. Hence, let’s look at the factors that are leading cash to lose its supremacy to digital money in India.

One of the biggest reasons why people are reclining towards the digital mode of carrying money is the amount of cash they can carry with them while going somewhere. With digitisation of banks, people do get to carry the amount of their entire bank account with them. With digital bank accounts on their phones, people don’t need to worry about the theft, or their money getting lost. When people are carrying a huge amount of money with apparent safety, then we see no reason for them not to choose digital money over paper money.

The struggle people go through while paying someone in cash is the counting of money. Looking for the notes, the coins inside the purse/wallet and the irritation of getting ragged notes is just too much. On the other hand, people just enter the amount in their UPI apps and the payment is made in the blink of an eye. The effortlessness people experience while paying someone with digital money versus with paper money is the second reason why cash is losing the predominance it would have in people’s lives.

Money in digital form offers more convenience when it comes to sending or receiving money from a person. Without going to a bank or an ATM, one can transfer and receive money to and from anyone instantly. The hassle people would go through while standing in long queues, filling out forms and wasting their time has decreased with the option of UPI apps being on their side. Therefore, people are choosing to keep money in their phones more than the cash in their hands.

Cash as compared to digital money holds less mobility when it comes to odd hours of a day. In case of an emergency, people do suffer when they don’t get to send or receive money from a person sitting at distance. Hence, people prefer to have more money in its digital form than in its paper form. People love having money inside their fists (phones) all the time. The feeling of never running out of money is what people love with the presence of digital money.

While paying with cash, people hold no record of the payment unless a receipt is raised for that purchase/payment/transaction, which might lead to a conflict in case of fraud. On the other hand, digital transactions are recorded properly in each app that people use to make payments for anything. In case of urgency or fraud, people can show up the proof of the transaction made by them. So, keeping in mind the security prospect of digital transactions, people rely on digital money than paper money.

As life is taking the route of a busy road, people are seeking convenience, comfort and effortlessness over everything. And, as the expenses in everyone’s life are increasing with each passing day, people need more money handy all the time. Therefore, the ease of paying digitally is attracting more people than the primitive way of paying in cash. With everyone transforming digitally, cash is being replaced with the digital mode of payment at a rapid pace, and in no time, we might also see cash disappearing or only existing in tales.