The way money is stored and used for payment has reduced the need for withdrawals. Since the ’50s, the widespread use of payment cards has built the foundation of a cashless society. In the ’60s, bank accounts became digitalized. Then, moving forward to the ’90s, the internet infrastructure made online banking and other financial institutions such as credit unions make changes to become more digital. Banks realized that cash is no longer their core source of business, as they can move money by using e-payments.
A cashless society
Various factors bring about a cashless society. These factors include the internet infrastructure, mobile payment apps, card payment systems, and the legal framework. The term “cashless society” means that though there are still banknotes and coins, using a mobile device for payment transactions is more practical.
From virtual to cash
When you get funds online, you may wonder how to get it out of the virtual world. You may receive payment in different digital forms of money via PayPal or other similar payment services funds, Bitcoin, other cryptocurrencies, wire transfer, or bank transfer.
If you wish to keep these online funds and access it when you use a payment method, you need to store it. You can save it where it was sent to then spend it online as needed. For example, many merchants accept PayPal, so you may use your funds’ shop online, buy gift cards, and send it to other PayPal account holders.
If your ultimate goal is to take it out as cold hard cash, most payment services have the option to withdraw to a linked account. It is highly probable that there is only one connected account. Don’t get confused as if the option to withdraw or add another account or card isn’t available; you have no choice but to use the linked account.
Limited withdrawal option
Such is the case with PayPal, as your withdrawal option is limited to one linked account. If that one linked account is to a bank, you can have the choices to withdraw to card or account. That connected account might be that of a payment service, but it will still have an associated debit card.
The typical withdraw methods include bank account, debit card, credit card, or payment service. When the funds are credited into those accounts, the virtual cash may also be used as a payment method. If the digital money is credited into a bank account or a bank debit card, it may be cashed out at the teller of that bank or by using their ATM.
Online payment methods
These traditional payment withdrawal methods are fast becoming a thing of the past. As we move forward to making more cashless transactions, it is no longer always necessary to pay with a wad of money. When using digital payment methods, cash management costs are reduced. It is far more costly and time-consuming to manage cash sales. It is a wise decision for businesses to stop paying and accepting cash. Many people nowadays prefer to go cashless and transact using online payment methods and use a mobile app when purchasing at retail stores.