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Yesterday many Kenyans were thrown into a serious tailspin when Mpesa services went down for one hour in the middle of the day.
Despite the service interruption being later explained as scheduled maintenance, that didn’t mean that it didn’t cause many Kenyans who use the ubiquitous mobile payment service a lot of pain and anguish.
So this article is aimed at helping Kenyans remember and learn why one should always carry physical cash even during the push for an increasingly cashless society.
The reasons are below;
1. In Case Of An Emergency
You never know what can happen, so you always need to be prepared. If you are going on a road trip, you need to make sure you have enough cash to pay for a tow truck. Having cash at hand is one of the more important travel safety tips.
2. Splitting Bills
Dining out and paying for it together with companions or roommates? While some restaurants might be able to generate separate checks, paying all at once is much quicker and easier.
Similarly, it’s simpler to divide a purchase with a shopping partner when you pay with cash. Otherwise, if one party makes a promise to reimburse and then forgets to do so, one party can be left footing the entire bill.
3. In Case You Can’t Use A Card or pay using mobile money
It seems as though you can use credit or debit cards pretty much anywhere these days. And for the most part, this is true. However, some places only accept cash.
4. Tolls like the Nairobi Expressway
Even though one can use Mpesa on the Expressway, yesterday proved that having cash would have saved many who couldn’t pay while using the popular road.
5. In Case of Emergencies
Envision yourself in the midst of a natural disaster or power outage where electronic payment methods are rendered inoperable. Having cash on hand might be quite helpful in these circumstances. When electronic payment methods aren’t available, cash lets you buy necessities like food, water, and medical supplies.
6. Improved Budgeting and Teaching Financial Responsibility
You can better control your impulsive spending and manage your finances by using cash. It is simpler to understand the concept of money and its value when we have physical money since it gives us a tangible representation of our wealth.
Because digital payments are frequently quick and simple, it can be simple to lose track of how much you’ve spent.
Having cash on hand might be a great way to teach kids and teens about money management.
Having cash on hand makes the relationship between money and spending real and instantaneous.
Cash transactions enable people to directly see and feel the value of their purchases, in contrast to digital transactions, which can appear abstract and disconnected.
7. Privacy and Security Concerns
Cash offers a degree of secrecy that digital transactions cannot in an age when worries about online privacy and security are on the rise.
Cash transactions are anonymous and do not require the sharing of sensitive account information, in contrast to digital transactions that leave a trail of data that may be hacked or stolen.
8. Charitable donations even to people on the street
Having cash on hand enables you to support needy people you care about even when you don’t have access to digital platforms, especially if you’re the type of person who likes to make impromptu philanthropic contributions.
9. Traveling Abroad
It is crucial to have local currency on hand while travelling abroad. While many big tourist destinations accept credit cards, many local markets and smaller shops can only take cash.
Alternatively, foreign transaction fees levied by your card can significantly reduce the value of your trip.
10. Security
I think this is my favourite justification for carrying cash. You don’t have to worry about cancelling credit cards if your wallet or purse is taken or misplaced!
Yes, it’s unpleasant to be out in public with that much cash in your bag, but if you don’t carry a lot, the loss won’t be as great as it might be if someone stole your phone which has your SIM card.