The debate over whether we should become a cashless society shows no signs of abating soon, but in the meantime plenty of compelling reasons remain for using cash in a variety of situations.
While some businesses are embracing cashless payments, and the whole country of Sweden is moving in that direction, cash isn’t about to disappear. Too many businesses still depend on coins and bills to sell their wares. Cash remains king at fast food restaurants, for instance, where 41% of the business accounts for cash transactions. Cash also remains a significant portion of business at gas and convenience stores (33%), mass merchants (32%), restaurants and bars (26%), and warehouse clubs and food stores (25%), according to IHL.
With so much business still conducted in cash, don’t expect it to disappear any time soon. Besides, some customers cannot pay with anything but cash, since they are unbanked or under-banked.
When Banking Isn’t Available
Currently, the number of Americans without bank accounts is 5%, according to a Federal Reserve report. In Europe the number is higher – 14%. And the World Bank estimates that globally 2 billion people are unbanked.
If forced into a cashless system, unbanked and under-banked people would be disenfranchised, unable to buy food, clothing and other life necessities. Most people don’t choose to be unbanked or under-banked; they simply have no access to the banking system. In some cases that’s because they live in rural or inner city communities where bank branches are scarce.
Banks also deny people accounts if they fail a background check or they’ve had too many overdrafts of bounced checks in the past. Other reasons for unbanked or under-banked people include distrust of banking institutions, unemployment, illiteracy and banking fees.
A cashless society would disproportionally affect the poor and other vulnerable communities, such as recent immigrants who haven’t had enough time to build up credit or open a bank account.
Security Issues
Some consumers choose to pay for purchases with cash because of security concerns. Every time another big company suffers a breach that compromises payment card information, consumers worry about how that impacts them.
In 2017, the consumer credit reporting agency Equifax suffered one of the biggest breaches to ever grab headlines. It compromised personal data of almost half of all Americans (145.5 million), including driver license numbers birth dates, addresses and Social Security numbers.
Consumers have good reason to worry about a potential cashless society. One of the possible consequences of having personal data stolen through a security breach is identity theft, which can cause years of headaches for victims. Through identity theft, cybercriminals can empty a person’s bank account, use their credit cards, get government benefits and even apply for a job in the victim’s name.
Paying Cash for Online Purchases?
While there is an undeniable push for cashless systems, there is just as persistent a movement to continue using cash. It is even possible to pay for online purchases with cash, thanks to a product called Paysafecash. It allows buyers to go to a nearby location to pay with cash for an online purchase. How successful Paysafecash will be remains to be seen, but one thing is for sure: As long as initiatives and technology like Paysafecash are introduced, you can bet cash will stick around for a long while.
FAQs
Similar rates have been recorded across other Scandinavian nations, while Hong Kong predicts cash will account for only 1.6% of point-of-sale (POS) transactions by 2024. But despite this global shift away from tangible currency, the US isn't likely to transition officially any time soon.
Why will cash never go away in the US? ›
Security Issues. Some consumers choose to pay for purchases with cash because of security concerns. Every time another big company suffers a breach that compromises payment card information, consumers worry about how that impacts them.
Why won't my APG cash drawer open? ›
Check the drawer is not locked and verify your lock is in the vertical or 12 to 6 o'clock position. Remove the inner drawer and check for foreign obstructions then reinstall it. Check the cash drawer is properly inserted on the rails, remove any items and then reinstall the inner drawer.
Will there be a cashless society? ›
Is the cashless society really coming? Despite the rapid development of convenient, seamless digital payment methods, the 100 per cent cashless society remains a distant prospect. Cash is a trusted, reliable and essentially secure way to spend, and still adds up when it comes to straightforward everyday budgeting.
What happens if the US goes to digital dollar? ›
Critics claim the digital dollar, or any form of digital currency, would have major privacy and security concerns and could give the government unprecedented access to Americans' financial data. Digital currencies may also be more susceptible to cyberattacks or hacking than traditional payment methods.
Which banks are going cashless? ›
Australia's Macquarie Bank is going fully cashless, with critics raising concerns about the resilience, privacy and security of digital-only transactions.
Is the US going cash free? ›
The US is moving toward cashless payments, with a substantial increase in the use of mobile wallet apps and contactless cards. A report from the Federal Reserve Bank of San Francisco found that payments made using cash accounted for just 18% of all US payments in 2022.
Is China cashless? ›
In recent years, payment in China has undergone a remarkable transformation, evolving into an almost cashless society characterised by mobile solutions.
Will cash ever be discontinued? ›
But while moving to a cashless society has several benefits that will accelerate its adoption, and there are legitimate concerns over the role cash will have to play as its use dwindles, there's no sign that cash is going to disappear completely.
What to do if cash drawer is stuck? ›
Check for obstructions - Open the cash drawer fully and remove any obstructions which might be preventing the cash drawer from opening. Some cash drawers have a manual eject latch on the bottom of the drawer which you can use to check this.
Drawer doesn't close
Make sure the drawer is unlocked, with the keyhole in a vertical position. The drawer won't close if the keyhole is in the locked (horizontal) position. See the next section and make sure that debris, coins, or bills are not blocking the inner drawer track.
Why is my cash drawer over? ›
An overage is when your drawer is over the amount your POS report says you should have. A shortage is when your register's total is short. Shortages could mean cash was either lost, stolen, or counted incorrectly. An overage typically means your customers were shortchanged.
Is cash going to be phased out? ›
With cash payments on a downward trajectory and some businesses phasing out cash as a payment option, could there be a point in the future where cash use goes the way of cheques? "If we look at look the growth trajectory it's very likely that by 2030 more than 95% of payments will be cashless," says Zhong.
Which country is going cashless? ›
Sweden, the first European country to introduce banknotes in 1661, became the world's first cashless society on 24 March 2023. Finland and the UK are top–ranked to become cashless societies as well.
Is cash really going away? ›
Cash use has been declining for years, but cash isn't close to going away. In 2022, there were a staggering 70 billion cash transactions, making it the third-most-common payment method.
What happens if we become a cashless society? ›
Banks keep an electronic record of transactions, and people access their funds through electronic systems. The advantages to cashless societies might include reduced physical crime (since there's no tangible money to steal), lower transaction costs, and the convenience of not needing to carry cash.
Is the US dollar going away? ›
There is no reason to expect the U.S. dollar to collapse in the near future. 515 Such a change would require the entire world to change its adherence to an international monetary system that has the greenback at its center. As yet, no replacement is anywhere on the horizon.
What country is going to a cashless society? ›
Norway has an unbanked population of 0%, meaning every single citizen has a bank account. Only around 2% of payments in the country are made with cash. With 32 ATMs per 100,000 people, Norway is currently one of the most likely countries to become a cashless society.
