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:
Digital currencies
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.
Cybersecurity
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].
