We sometimes hear people mentioning that "cash is king".
Of course, cash is the dominant means of payment in many countries and the majority of our daily payments are made using banknotes or coins.
Even though we have been using credit cards for many years, cash is still popular globally.
Nevertheless, the use of fin-tech such as e-wallet, QR code payment and online shopping has become popular since the onset of the Covid-19 pandemic.
In other words, the pandemic has accelerated the use of non-cash payment in Malaysia, and this has provided the momentum for us to become a cashless society.
In a recent study by Visa, 55 per cent of Malaysians said they could live without cash for more than a week, an increase of 13 per cent compared with the previous year.
The pandemic has prompted consumers in Malaysia to choose digital payment over cash. It is predicted that most nations would go cashless by 2030.
Howver, our country still lags behind Finland, Sweden and China in establishing a cashless society.
To help Malaysia develop into a cashless society, several challenges need to be addressed.
We must not rush to become a cashless society as some groups of consumers are not prepared for it. If we do that, there would be consequences.
Senior citizens, for instance, are generally unfamiliar with the digital payment method. Some still struggle to use a smartphone due to not only their limited skill to use digital tools, but also poor eyesight and other problems.
Imagine an 80-year-old woman with long-sightedness squinting to see clearly the small screen of a smartphone to search for icons.
This may be at their fingertips for the young generation, but not so for the older generation.
Our society emphasises care and love for the "golden citizens", who advocate that cash gives them freedom, convenience and security.
Besides, using cash is easier to budget and consumers will not change their habit easily.
Non-cash method is also detrimental in other ways.
According to the Malaysia Department of Insolvency last year, 23.75 per cent of bankruptcies comprised people aged below 34 with credit card debt being one of the major causes.
Bank Negara Malaysia data shows that 47 per cent of youths have high credit card debts due to lifestyles or living beyond their means.
The figure is alarming as financial literacy has been implemented across the curriculum since 2017. Nevertheless, we should wait a while longer to conclude on this matter as the results and statistics on the implementation of financial literacy have yet to be revealed.
Another issue that should be considered is privacy. The government can access our personal and business data. They can trace and track the expenditure of every consumer, as well as business group. This is mostly done to detect those who are involved in tax evasion.
Nonetheless, e-payments can generate more revenue to the government and part of that can be used to develop the nation and sustain the welfare of society.
Moving towards a cashless society has advantages as it can reduce the risk of crimes involving physical money.
Bank robberies may not happen if there is no money to rob. It it is also a good way to avoid the transmission of viruses during a pandemic. In fact, researchers found that Covid-19 can remain on a banknote for up to two days.
Another advantage of transactions using e-payment is that they are faster as they do not involve the exchanging or counting of money.
Going cashless also expedites transactions and enhances convenience for businesses and enconsumers.
It remains to be seen whether small or micro enterprises and those without banking access will be left behind in this journey.
In all, we need to create more awareness about e-payment to prepare our citizens for the new cashless era.
The writer is associate professor and deputy dean (research and innovation) at Faculty of Management, Economics, Universiti Pendidikan Sultan Idris
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times