What is Plastic Money? Will Plastic Money be our only option in the future?
Plastic Money
Plastic money is a relatively new phenomenon that has largely replaced the traditional concept of paying with cash.
Plastic money is a term coined in response to the increasing number of transactions taking place on the part of consumers to pay for transactions incurred by them to purchase goods and services both physically and virtually.
Reliance on Latest Tech
We are increasingly reliant on new technologies to make our transactions faster and more efficient.
The continued and rapid advancement of technology has resulted in significant changes in our daily lives.
Due to the imposition of restrictions on the movement of banking capital in recent months, there has been a massive increase in internet banking transactions using so-called “plastic money” rather than cash.
Another feature of plastic money is the record, for example, Equifax credit report, credit scores, Etc.
Traditional VS Plastic — Money
Plastic money is a substitute for cash or traditional “money.” “plastic money” refers to the credit or debit cards that we use to make purchases.
Plastic money is a relatively new context that has replaced the traditional concept of paying with cash.
Plastic money is a term coined in response to the increasing number of transactions involving consumers paying for transactions incurred by them to purchase goods and services both physically and virtually.
It includes credit cards, debit cards, pre-paid balance cards, smart cards, and similar items.
Why? How?
Credit cards, debit cards, pre-paid balance cards, smart cards, and similar items are included. This study usually focuses solely on the use of debit cards by the elderly to determine the effectiveness of such cards in real life and how consumers perceive them.
It also discusses the use of an electronic wallet. Is it a valuable electronic wallet for day-to-day transactions? Can people over 65 use it? The electronic wallet accepts debit cards linked to the banking account that a person has declared in the financial institution.
It enables an individual to purchase in a store and unforgeable transactions with other wallets.
Canada — Plastic Money
In November, Canada became one of approximately three dozen countries that had replaced at least some paper banknotes with ones printed on polymer when it launched a plastic $100 bill.
The Bank of Canada will begin issuing $50 notes made of the same material on Monday, with lower amounts following next year.
The move to polymer is part of an effort to lower one of the world’s highest counterfeiting rates among the world’s 20 largest countries. In 2004, Canada discovered 470 forgeries for every million banknotes in circulation.
According to the Bank of Canada, the new notes are simple to validate and difficult to counterfeit.
Canada’s new $100 bill is glossy, challenging to rip, and stiffer than paper. The clear plastic windows, which include one in the shape of a jagged-edged maple leaf with a smaller, frosted maple leaf within it, are the most noticeable variation.
A hologram of the number “100” can be seen by looking through the leaf at a point light source.
Polymer Notes
Counterfeiting has decreased in every country that has adopted polymer banknotes, but the polymer banknote provides more flexibility for future adjustments.
Polymer notes are nearly twice as expensive to make as paper notes, but they may last longer in circulation.
According to research commissioned by the Bank of Canada, the new banknotes will survive two and a half times as long as paper bills. According to Securency, the last four times as long.
But Plastic money will remove this need for notes soon with virtual realities and digital currencies coming into action.
Types of Plastic Money
1. Debit Card
This payment card deducts funds directly from a consumer’s bank account to electronically pay for goods and services or withdraw money from an ATM.
2. Debit card with Visa
With a global presence of over 200 countries, this is one of the most widely recognized debit cards.
3. Master Card
A MasterCard debit card is widely used worldwide and provides 24-hour banking services in ATMs and online for booking tickets, traveling, and shopping.
4. EMV/ Credit Cards
Europay, MasterCard, and Visa are abbreviated as EMV. Because they use innovative chip-based technology. It commonly refers to a credit card with a smart chip, these cards have exceptional security characteristics.
Practical Advantage of Plastic Currency
- Plastic money lasts two to five times as long as paper money and works better in vending machines. Furthermore, unlike paper currency, plastic money does not shed tiny bits of ink and dust that can cause ATMs to malfunction by confusing their optical readers.
- Polymer bills are much more difficult to forge. They have several security features, such as difficult-to-copy transparent windows, hidden numbers, metallic holograms, and text printed in a tiny font.
- The non-porous surface of plastic money does not absorb perspiration, body oils, or liquids, and it remains cleaner and less grubby than paper money. The plastic money is nearly waterproof, so the bills will not be ruined if they are accidentally left in a pocket and the washing machine. Plastic money can withstand a great deal of abuse. Plastic currency can be bent and twisted without causing damage.
- Because bacteria can’t cling to the slick, non-absorbent surface of the new plastic money, it’s less likely to spread disease.
- In addition, Canada will pay less for its new plastic money. While plastic banknotes are more expensive to print than their paper counterparts, their longer lifespan means Canada will print far fewer bills and save a significant amount of money in the long run.
Environmental Benefits
Overall, plastic money is beneficial to both the government and consumers. Even the environment may benefit from the trend toward plastic currency.
Plastic money, it turns out, can be recycled and used to make other plastic products like compost bins and plumbing fixtures.
According to a life-cycle assessment commissioned by the Bank of Canada, polymer bills are responsible for 32% fewer greenhouse gas emissions and 30% less energy consumption over their entire life cycle.
However, the advantages of recycling are not limited to plastic money. Various companies have been recycling worn-out paper currency for several years and using the recycled material in products ranging from pencils and coffee mugs to, ironically and appropriately, piggy banks.
