In the middle of travel experiences, the question of whether to use cash transactions or QR payments becomes crucial for travelers to decide.

Exploring the varied topography of Southeast Asia (SEA) presents a combination of experiences, cultures, and gastronomy. In south-east Asia, the regional economy is undergoing a significant transformation thanks to a combination of rapid economic growth and the increasing adoption of smartphones. This has paved the way for the creation of an advanced digital payments ecosystem, with QR payments taking center stage.

According to a recent study conducted by the Boston Consulting Group (BCG) and published in 2023, the number of smartphone users in south-east Asia surged to 675 million in the year 2022, accounting for an impressive 82% of the regional population.

As smartphone usage continues to penetrate deep into the region, the use of QR codes as a payment method has experienced a remarkable surge in popularity. In the realm of cross-border E-wallet payments, six prominent countries in Southeast Asia have recently come together to initiate bilateral QR payment linkages. These countries include Malaysia, Thailand, Vietnam, Singapore, Indonesia, and the Philippines. A pressing question arises amidst this development – should travelers opt for QR payments or stick with traditional cash?

Here, we examine the subtle benefits and drawbacks of utilising QR codes instead of cash when travelling through Southeast Asia, taking into account aspects like accessibility, currency rates, security, and ease of use. Join us as we explore the advantages and disadvantages of using QR payments versus cash during your travels.

PROS OF QR PAYMENT

Accessibility and convenience

QR payments are the pinnacle of transaction convenience, particularly when travelling. Travellers may quickly begin making payments by utilising specialised mobile wallet software on their cellphones to scan QR codes. This provides a hassle-free payment option by doing away with the need to manage currency swaps or carry real cash. Furthermore, a lot of digital wallets handle numerous currencies, which makes it easy for users to store and spend different currencies without having to deal with different denominations or convert currency.

Reduced Risk of Theft or Loss

The inherent security advantage of QR payments lies in their digital nature. Unlike cash, which can be vulnerable to theft or misplacement, QR payments are conducted digitally via encrypted channels. This significantly reduces the risk associated with carrying substantial amounts of cash, providing travelers with peace of mind during their explorations in Southeast Asia. With funds stored securely within digital wallets, the threat of theft or loss due to physical currency is mitigated.

Transparent Exchange Rates

Many QR payment platforms offer transparent exchange rates, enabling users to ascertain the exact charges in their home currency before making transactions. This transparency aids travelers in budgeting and financial planning, allowing them to gauge the precise amount they will be charged in their own currency, inclusive of any applicable fees or exchange rate fluctuations. Such clarity contributes to better financial management and helps travelers make informed decisions regarding their spending while abroad.

Transactions without a contact

With the COVID-19 epidemic, in particular, the contactless aspect of QR payments becomes more prominent. Travellers can conduct transactions without coming into direct contact with cash, cards, or payment terminals by just using their smartphones to scan QR codes. By reducing the possibility of virus transmission through surfaces, this touchless approach complies with health and safety regulations and offers an extra degree of security for customers and travellers alike.

CONS OF QR PAYMENT

Restricted Approval

Although QR payment systems are becoming more and more widespread, not all parts of Southeast Asia may have adopted them. Some merchants in the region may not have fully embraced digital payment options, especially in smaller or isolated regions. Consequently, travelers relying solely on QR payments might encounter limitations in conducting transactions, especially in places where cash remains the primary mode of payment. This restricted acceptance can potentially inconvenience travelers, necessitating alternative payment methods in areas without adequate QR payment infrastructure.

Dependence on Technology

QR payments are inherently reliant on technology, including internet connectivity and compatible devices such as smartphones equipped with QR code scanning capabilities. In regions of Southeast Asia where infrastructure for stable internet access is limited or inconsistent, conducting QR transactions may pose challenges. Travelers might encounter difficulties in initiating payments or face delays due to poor network connectivity, hindering the seamless and instantaneous nature of QR transactions. Moreover, older or less technologically advanced devices may not support QR code scanning, further limiting the accessibility of this payment method.

Exchange Rate Fluctuations

When utilizing cross-border QR payments, travelers may encounter exchange rate fluctuations that could impact the final amount charged in their home currency. Different payment platforms or banks offering QR payment services might have varying exchange rates or additional fees applied during currency conversions. This variability in rates could result in discrepancies between the quoted and actual amounts charged, potentially leading to unexpected expenses for travelers. Consequently, travelers need to remain vigilant and mindful of potential fluctuations in exchange rates when using QR payments for cross-border transactions in Southeast Asia.

PROS OF CASH TRANSACTIONS

Universal Acceptance

In today’s ever-advancing technological landscape, where digital payment systems and technical innovations continue to enhance our daily lives, it is essential to acknowledge the enduring value of cash transactions. Cash is still the most common and commonly accepted mode of payment in Southeast Asia, although many regions may not have access to digital payment options or may not have the infrastructure necessary for card- or QR-based transactions. Travellers can rely on cash to complete activities, such as making purchases, paying for services, or participating in local marketplaces, whether they are in busy urban centres or isolated rural areas where digital payment options might not be practical.

Preventing Extra Charges

The ability to avoid possible fees or surcharges levied by specific payment platforms or banks is one of the major advantages of cash transactions. Some digital payment methods, including credit cards or electronic transfers, may entail transaction fees or currency conversion charges, especially for cross-border transactions. Cash transactions eliminate these additional costs, allowing travelers to avoid such fees and transact without incurring any surcharges, thus potentially saving money during their travels.

Fixed Value

When it comes to financial transactions, using cash provides a certain level of assurance in terms of the currency’s value. Unlike digital transactions, cash is not susceptible to the fluctuations of exchange rates that can occur. Unlike digital payments, where exchange rates might fluctuate between the time of transaction initiation and settlement, cash transactions provide a fixed value at the time of exchange. This stability can be advantageous for travelers in budgeting and financial planning, as the value of the currency remains constant, reducing uncertainties related to potential fluctuations in exchange rates.

CONS OF CASH TRANSACTIONS

Hazards to Security

There are obvious security risks when travelling with large sums of cash. Carrying significant amounts of cash while travelling increases the chance of theft or loss. The presence of cash could draw the unwanted attention of pickpockets or opportunistic thieves in busy or unfamiliar areas. Moreover, in the unfortunate event that currency goes missing or is unlawfully taken, retrieving the lost funds can pose a considerable challenge. Cash-based transactions present limited avenues for recovery, leaving individuals who are on the move without the means to reclaim any misplaced or stolen funds. Conversely, digital transactions provide the opportunity to trace or reverse the transaction, offering a potential solution to such situations.For visitors to Southeast Asia who only use cash for purchases, this loss risk is a major disadvantage.

Inconvenience for Larger Transactions

For significant purchases or transactions requiring substantial amounts of money, relying solely on cash can be impractical and inconvenient. Carrying large sums of cash might necessitate multiple visits to ATMs or currency exchange centers to withdraw or exchange money, especially if the maximum withdrawal limits are restrictive. This process can be time-consuming, disrupt travel plans, and pose security risks each time travelers withdraw substantial amounts of cash. Additionally, the logistics of carrying large volumes of cash, ensuring its safety, and managing denominations for larger transactions can be cumbersome and impractical, potentially inconveniencing travelers during their journeys in Southeast Asia.

The reliance on physical cash presents its own set of drawbacks. Carrying substantial amounts of cash raises concerns regarding security risks, as travelers become susceptible to theft or loss. The impracticality of managing larger sums of money for significant transactions further compounds the inconvenience, necessitating multiple visits to ATMs and exposing travelers to potential security threats with each withdrawal.

Hence, a balanced approach emerges as the prudent path forward for travelers navigating the intricate mosaic of Southeast Asia. Leveraging the convenience and security afforded by QR payments for smaller transactions and day-to-day convenience stands as a strategic move. Concurrently, maintaining a reasonable amount of cash for emergencies or situations where digital payments aren’t feasible serves as a pragmatic safety net, ensuring a smooth and secure journey through the vibrant tapestry of Southeast Asia.

Conclusion

The decision between QR payments and cash hinges on individual preferences, destinations, and the specifics of each traveler’s itinerary. Assessing the prevalence of QR payment systems, evaluating the reliability of internet connectivity, and considering the potential need for larger transactions are pivotal steps in determining the most suitable payment method. By doing so, travelers can embark on their Southeast Asian sojourns equipped with a seamless and secure means of transaction, enriching their travel experiences amidst the myriad wonders of the region.