Cashless Payment
Cashless Payment
A payment method that lets you pay using a card, smartphone, or similar device instead of paper bills or coins.
In Simple Terms
Cashless Payment is a system for paying for things at a store without using physical cash. A purchase is completed when a cashier scans a barcode shown on your smartphone, or when you tap an IC card against a dedicated reader. The amount is then deducted from a prepaid balance you've charged in advance, or billed to a credit card you've registered.
Behind the Name
The word "Cashless" combines "Cash" with the suffix "-less," meaning "without." Add "Payment" to that, and you get "Cashless Payment" — a way to pay for things without using any physical cash at all.
Take a Closer Look!
Cashless Payment refers to paying for purchases using digital data instead of physical cash, such as paper bills and coins.
The payment goes through by exchanging money data via a dedicated card, smartphone, computer, or similar device.
This payment method can be broadly divided into three types, based on when you actually pay.
The first is prepaid, where you load money onto a balance in advance. The second is pay-as-you-go, where the amount is deducted from your bank account at the moment of purchase. The third is postpaid, where charges are billed together at a later date.
Electronic money, QR code payment, and credit cards each fall into one of these three types.
For users, this means no more fumbling for coins in your wallet, and for stores, it means checkout at the register goes faster.
Payment history is also automatically recorded in an app on your smartphone or similar device, making it easy to check when, where, and how much you spent.