Fiji’s First Massive Move Towards A Cashless Society
Therefore it is no surprise that this initiative was implemented to fight the black economy and prevent the loss of precious tax dollars that could help fund government projects to assist Fijians
Typically, only a niche segment of the Fijian population use cashless technologies such as credit cards.
While other technology, such as the internet, have been integrated relatively easily in our traditionalist society, cashless technologies have always been looked upon with suspicion.
How cashless societies help
This week we aim to demystify this subject, explain how cashless technologies are helping many people and how local applications can help move Fijian society forward. So what is an example of a cashless transaction in Fiji?
The most obvious example of this is the use of ATM cards to purchase goods and services using EFTPOS machines.
Most recently, however, there has been one aspect of Fijian life that has completely made the move to cashless.
By now, every Fijian who travels by bus is familiar with e-ticketing and how to use it.
This modern upgrade to bus fares uses a technology called Near Field Communication (NFC) in what we know as our “bus cards”. Already in common use overseas in multiple fields, the eticketing system is a prime example of NFC use in Fiji. This is sometimes referred to as a contactless card because the data “jumps” through the air up to a distance of four centimetres.
The most obvious benefit of cashless transactions, of course, is the convenience.
‘Tap and go’
Fijians can now simply “tap and go” when boarding buses. Previously, you would hand over cash and unless you had the exact amount, you would have to wait for change. If you had a large denomination, you would be told that the bus driver did not have change.
Once you top your card up, the money is stored in a digital account that contains your transaction history, stored money value and other information.
Each time you make a payment by tapping your card, the amount is deducted from your account and added to the bus operators account. Every transaction is conducted in real-time with the server, the exact amounts are paid, and there is no waiting for change.
Secure and quick!
This initiative, which was spearheaded by the Fijian Government, was launched as a better way to combat some of the inadequacies of how bus travel operated in the past.
Past difficulties solved
A major difficulty faced by the Government in the past was accurately accounting for the revenue earned by the various bus operators.
Conventional means of revenue collection were labour-intensive, insecure, could cause delays in boarding times, and were fairly inflexible.
With cashless transactions, there is now transparency in financial transactions by and for bus operators. There is also less chance of theft by employees and unscrupulous individuals, providing large benefits to bus operators. Every month, an estimated $9.5 million is spent by the public on bus travel.
Therefore it is no surprise that this initiative was implemented to fight the black economy and prevent the loss of precious tax dollars that could help fund government projects to assist Fijians.
The Government’s provision of free or subsidised bus fare to students, the elderly and persons living with disabilities could be also now be conducted in a more efficient manner, without people misspending or abusing the given funds.
And as mentioned before, the boarding process is vastly easier to deal with, providing an added advantage for these groups.
Strengths
Cashless systems prevent muggings, strengthens accountability and allows for easier tracking of expenditure for all parties concerned.
The ability to pay an exact amount means you save money in the long run.
Another long-term aim is to do away with or reduce the need for a physical form of currency which can lead to massive savings for a country.
The production cost of notes and coins can be quite high and being tangible objects, they are more susceptible to being misplaced or stolen.
The goal, ultimately, is to transition into a cashless society so that transactions are tracked, the inconvenience of carrying cash is removed and corruption and the flow of black money are curbed because it can harm our economy.
With cashless and other new-age technologies, Fijians can build a better, more technologically armed and savvy Fiji, ready to face the challenges of the Digital Age. See you next week with another digital dose of demystifying Tech Talanoa!