During the past decade, much has been said about a cashless society. So far, the 2010s did not end the use of cash. The rising number of digital payments options such as digital wallets, wearables, mobile pay apps, and contactless cards is indeed threatening cash payments and circulation.
Person-to-person (P2P) applications are becoming more and more popular among all demographics given the swiftness, cost cut, and ease-of-use. Contactless cards are predicted to increase in the next two years, are replacing the small money purchases at the point-of-sale. Can the 2020s bring a cashless society?
Without a doubt, not walking around with cash is convenient from the safety and comfort point of view. However, certain communities and age groups rely on the use of money. This would widen the gap between different groupings, and there is already a pushback for a no-cash society.
There are cities in the US that have taken active steps to accommodate cash users. Major companies as well with amazon introducing Amazon Paycode, which allows customers to buy online and pay in cash after at a Western Union. Additionally, worldwide, the use of digital payment options and cash is not uniform. Not all countries and its citizens are always on the move and globally that could have repercussions as well.
The popularity of cashless payment methods is indicative, and it’s mostly based on the perks they bring. Paying with a card, through an app, or with a wearable enhances the customer experience by maximizing convenience. Thus, although a cashless society is not yet a certainty, people can still expect an increase in the cashless payment types available.
One new cashless initiative example is the Amazon Go brick-and-mortar convenience stores. The company uses cutting-edge technology and cameras to offer customers seamless shopping experience. Customers can walk into an Amazon Go store, pick out the items they wish to buy, and leave. As they exit, the purchase is automatically charged to their Amazon Go account.
Consumers desire more and more to have a simple and painless experience when paying or handling money. Our society is relying on digital payments options much more than it was five years ago. Banking started to play a crucial role in our day-to-day life, and the industry is adapting to the growing need for convenience. With increased interest and usage of digital channels, the banking sector is engaging consumers globally with different platforms and transaction concepts. Although the perks are visible, a cashless society is not a certainty as part of the systems opposes. Cash will still be part of our daily transactions one way or another.