Plastic money refers to a payment mechanism that replaces physical currency transactions with plastic cards. These cards are typically made from materials like plastic or a combination of plastic and metal, earning the moniker of plastic money. The cards facilitate electronic transactions by storing your financial information securely on the plastic/metal card and you can use them to access your financial accounts on the go. The most common types of plastic money are debit and credit cards, but gift cards, store cards, and Forex cards are also considered plastic money.

Plastic money has become a necessity today as it has replaced cash payments across the world and established itself as a necessary form of instant money. It has made it simpler for us to buy items with some of the best credit cards in the market, which we could not otherwise afford. Plastic money has many benefits, including convenience, global acceptance, and emergency access to funds. It has also made our lives easier and alleviated the hassles that come with carrying currency.

However, there are also some drawbacks to using plastic money. One of the biggest dangers of credit cards is spending more money than you have, which can lead to debt. Overspending is a common problem with credit cards, as they allow you to borrow against your credit limit, and you might be tempted to leave the debt payment to your “future self,” who might not be able to afford the repayment.

In summary, plastic money refers to payments made via debit or credit card, and it has become a necessary form of instant money that has replaced cash payments across the world. While it has many benefits, including convenience and global acceptance, it also has some drawbacks, such as the potential for overspending and debt.