With the advancement of technology, cashless payments have become a viable alternative to conventional paper or coin currency. The recent Covid-19 pandemic has led to a surge in the use of cashless payments. This is because cashless payments require no physical contact and are convenient as the payment can be made digitally regardless of location. Many businesses have implemented cashless payments as they provide them a competitive advantage in the marketplace. Concurrently, businesses are able to reduce costs in the long run as proven in the literatures below concerning the cost-reducing aspects of cashless payments. Firstly, an article by Yakean and Somkid (2020) stated that by eliminating cash payments, the costs of processing, transporting and storing cash are reduced. For instance, banks no longer need to hire armoured vehicles to transport cash form one place to another. Additionally, Ananda et al. (2020) reported that cashless payments made through the internet and e-wallets cost less than cash-based transactions. Thus, many businesses have begun to adopt cashless payments as it has a lower transaction cost and is faster and more efficient than physical cash. Lastly, Bank Negara (2010) stated that the development of digital payments could result in yearly cost savings for Malaysia of up to 1% of its gross domestic product (as cited in Ishak, 2020). In conclusion, cashless payments are not only essential in modern day commerce but it is also a vital factor for increased profitability through cost reduction. The government should factor in the cost-saving benefits of cashless payments and strive towards achieving a cashless society by making digital payments accessible to all.

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