Paper Money VS. Plastic Money: A Comparative Analysis!

In the economic sector, it is currently a hot topic that which one will stand out in future among paper money and plastic money and so far nothing looks clear in this regard. Although it is unclear but by going through a comparative evaluation among both of them, you may get some idea and for that this write-up will definitely assist you.

This comparative evaluation of both plastic money and paper money consists of some prominent demerits and merits of both of them. You must know that both of them benefit people somehow or other when it comes to making purchases.

It is important to know that in the nearer future it is unpredictable, which one of them will actually dominate. Following is the complete comparative evaluation of paper money and plastic money so make sure you go through them rigorously.

Pros Of Plastic Money

While digging out precisely, you will come across lots of pros of using plastic money and below are some of its pros so take a look at them thoroughly.

  • It is really easy to handle and with that, it also protects you from carrying a wallet consisting of various cash, hence decreases the possibility of theft.
  • As banking sector is evolving rapidly in this advanced era so now every bank ensures to give better facilities to credit card’s holders for making heavy payments.
  • One form of plastic money is ATM card, which protects you from carrying a wallet having heavy cash. It enables you to take out a certain amount of cash for making any purchase. ATM cards enable you to get cash anytime. The ATM machines remain open 24/7 making it easy for you to take out cash in the emergencies.
  • You also get lots of perks while using credit cards in the shapes of points and gifts. You get points on making purchases and when you have the better amount of these particular points so you can use them for buying any product. It happens to be a double use of your money.

Cons Of Plastic Money

Yes, plastic money also has some cons, which you cannot overlook so make sure you go through the following points carefully.

  • Even though plastic money benefits you in various ways but you must not forget that it is just a card, which may get stolen or lost.
  • You may come across various shops which accept credit cards of some specific companies and in this regard, your cash will work out only.
  • If your job is all about traveling underdeveloped countries so in those countries majority of shops are unable to facilitate credit card’s holders.

Pros Of Paper Money

Traditionally, it was only paper money, which people would use to make purchases before the arrival of plastic money and its value still persists in our society. Following are some prominent pros of paper money so take a look at them.

  • One of the prominent pros of paper money is that it is accepted almost everywhere and that gives an edge over plastic money.
  • With having cash you can make purchases from any shop in a comfortable way compared to credit card holders facing issues if swipe machine stops working in any shop.
  • You no longer to deal with your credit card’s bills. It happens to be the best attribute of paper money. If you fail to pay your credit card’s bills on time so it may put a huge burden in your pocket.

Cons Of Paper Money

As paper money has advantages so at the other hand it also has disadvantages, which you cannot overlook.

  • Carrying a wallet having heavy cash increases the chances of theft and you will not be able to focus on shopping as you will be concerned about the security of your cash.
  • Once you lose money so getting it back is not an easy task compared to credit card holders who just call their bank to deactivate their credit card, if they lose it.
  • It is a fact that you may come across a fake currency as this crime exists and may cause lots of problems for you. It means that ignoring credit cards entirely is not the better decision.

Verdict…

After going through this comparative evaluation, you will have come across the fact that neither of them is able to facilitate the masses single-handedly when it comes to make purchases. Both of them have pros and cons so leveraging both of them with a balanced approach is the right decision.

Author Bio

Laura Davidson is a Finance Manager. After passing out from a reputed business school with a degree in MBA, she joined a private firm and has been service the company since the last ten years. She is also the best essay expert in UK and has the ability to produce quality essays.

Categories: Edu