The Future of Cashless Economies Through Big Data Analytics in Payment Systems

Abstract

Big Data has become the buzzword for the past few years. Today, almost every business, big and small, is practically sitting on a Data Gold Mine. In terms of size, its growth is so rapid that it is doubling every two years. There has been a relentless increase in aspects related to Big Data. The exponential growth in both the volume and variety of Data indicates that there is a paradigm shift from traditional Banking and businesses to Data-driven Banking or businesses. No organization can survive, let alone compete, on their past achievements and successes. They have to reinvent themselves to be relevant in today’s world. That means they have to evolve into Data-driven Organizations the Sooner the Better. Industries that are yet to migrate to a Data-driven Organization/Digital Organization will likely see their relevance being put in question.
Cash is the storage of wealth that is convenient to exchange for goods and services. There hasn’t been a Treasury Department or Central Bank in global history that has hatred towards Currency. Nonetheless, when Cash Transactions are neglected, threats and complexities are expected to rise. A Cashless Economy means that a population uses financial assets not manifested in physical form. Transactions are settled using electronic, digital means. The centralized banking system keeps registers of the financial assets of its customers with distinct IDs or Digital IDs. Customers can redeem physical Cash from their accounts subject to regulation. Banking Institutions keep the highest currencies. The risk of using Cashless Payment Mechanisms is that Lawbreakers tend to transfer their assets to Smarter Nations to evade national Governments. Payment Systems should be meticulously designed taking all possible manipulations and threats into account. Big Data is analysed to provide sufficient and satisfactory answers to all payments questions from a broad array of user classes in Cashless Economies.