Cashless Travel: Everything You Need to Know

Gone are the days when you had to carry a wallet full of money when traveling somewhere. Now, cashless travel has become a reality due to technological developments, making it easier for travelers to manage their cash when they’re out and about. There are now different cashless options available in the market, which you can use based on your needs, bank, and country.

Debit and credit cards are very common, but recently, digital tokens have also been widely adopted, and as many individuals will learn when looking at how to buy crypto, it’s possible to use them when traveling depending on the countries that have embraced this payment method. 

A great advantage of cashless travel is convenience, as you get the chance to make a purchase without worrying that you’ll have to look for an ATM or convert money. A system without cash also provides more safety because you won’t have to carry a lot of cash with you, thus decreasing the risk of losing your money or getting it stolen. Furthermore, you can manage your budget better and avoid overspending.  In this blog, we will explore the options available when traveling cashless, so keep reading to learn more! 

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Debit card

If you don’t want to use your credit card on a trip, a great alternative is a debit card, which offers just the same convenience. Mastercard Debit and Visa Debit are the most common debit cards you can use for different purposes, and they work the same way. Essentially, when you use them to pay for something, the cash will be deducted from your balance immediately – this is similar to paying by cash, as it won’t be necessary to pay a bill once the month ends, as happens when using a credit card. However, debit cards offer great protection that cash doesn’t: if you are scammed, it’s possible to get help, or if your card gets stolen or you lose it, you can report it and cancel it immediately without losing any of your money.

No matter what type of debit card you decide to use, you will be able to use it nearly everywhere in the world on your travels, and the good news is that the card allows you to withdraw cash from ATMs if you ever need money in a pinch.  

Travel credit card 

If you travel often, travel credit cards can be a great option for you, working similarly to rewards credit cards.  Essentially, they pay you miles or points for making daily purchases and travel purchases, and once you have collected enough miles or points, you can redeem them for rewards such as hotel stays or flights – how incredible is that? 

What’s great about them is that they don’t charge international transaction fees, meaning you are free to use them without worrying that the fees will add up!  Keep in mind that travel credit cards are all different, so you need to consider your goals and purchase habits when choosing the one that works best for you. For instance, not all of them have the same earning potential, so it’s a good idea to check whether they reward miles or points and explore the purchase categories. Another essential thing is checking if they have unlimited earning potential because this aspect will make a difference. Finally, some travel credit cards offer extra benefits, like a welcome gift at the hotel, which can ultimately make the trip more enjoyable, so it’s worth keeping this factor in mind when making a decision about your travel credit card. 

Digital wallet app

A digital wallet is an app-based online payment tool that secures a digital version of your credit and debit card so that you no longer have to carry a physical card wherever you go. 

Different digital wallet apps are available, and you can choose one based on your needs and the smartphone model you’re using. For instance, Apple Pay is the preferred method for iPhone users, while Android users often choose Google Pay. Another alternative is to opt for PayPal, which can be used internationally. 

Cryptocurrency 

While they are still relatively new, cryptocurrencies have succeeded in developing strong communities of enthusiasts in different parts of the world. Nowadays, it’s possible to use them when traveling to avoid different fees. Instead of having to deal with your bank's currency exchange rate or with international fees, crypto assets eliminate all conversions. 

Keep in mind that not all countries accept crypto payments, so do your research when planning your next trip. 

A few considerations before cashless traveling

We may have discussed the benefits of cashless travel; however, it’s not a good idea to travel entirely cashless. Instead, you should bring a small amount of cash because you never know when you may experience an emergency and need it, so it’s always better to be safe than sorry. Furthermore, it’s essential to research the destination you’re traveling to and check out the payment methods commonly used there. For instance, according to a 2022 survey in Sweden, only 8% of the population made a purchase using cash – and there’s a good chance that the number has only reduced since that time. On the other hand, Japan is known for working mainly with cash. The last thing you want is to realize that you cannot use your credit card or digital wallet overseas, so don’t overlook this aspect. 

Also, if you use cashless payments methods, make sure to secure them, because there’s always a risk of being exposed to robbery, fraud, and so on when traveling. It’s important to take preventive measures such as diversifying your cashless payment methods, so you won’t end up gathering all your money into one place and using robust passwords on your device or accounts.  

The bottom line

Now that you know these guidelines, you can make the most of cashless travel without exposing yourself to significant safety risks. Cashless travel is ultimately the future when it comes to planning overseas trips because it offers a seamless way to manage money. Adhere to the best practices discussed here, choose the best payment option for you, and have a nice trip!