Alex Shvarts, CTO of FundKite, is a member of the Forbes Technology Council and his latest contribution was a piece called “Should You Be Taking Your Business Cashless?” The article discusses how eliminating cash from society would effect different groups as they stand today, such as low income communities, business owners and customers who pay more transaction fees, and crime.
It starts as follows…
““Will you be paying with cash or credit?”
“This is a question many employees in the retail and food-service industries no longer have to ask at the register. In fact, the question is now becoming the following: “Credit or virtual wallet?”
“Think about your own life. How much cash do you have in your wallet on a regular basis, and how often do you ever need it? You might think going cashless wouldn’t affect you much, but there are many benefits and disadvantages that don’t often come to our attention.
“The modern world is switching to digital everything, money transactions included. While the debate on the usefulness of the penny is a separate topic itself, paper money accounted for just 32% of United States payments in 2015, according to the Federal Reserve. The same study done in 2017 concluded that cash payments represented 30% of all transactions and 55% of transactions under $10.
“Cash payments are on the decline — there’s no doubt about that. But what does the future of a cashless society look like? It all depends on your socioeconomic standing.”
The article then goes into detail about how each group is affected. Low income communities and the elderly most likely won’t have the technology resources and bank access to participate in a cashless society. Certain groups would be, and even today already are, blocked out from making purchases at completely cashless restaurants and retailers. While business owners could manage cash flow easier, someone has to take the hit for the fees of swiping credit cards, and it’s already appearing to be pushed onto the customer. Finally, crime is suspected to decrease once all transactions become traceable, but some societies have already proved that is not the outcome.
You can read the full article on Forbes by clicking this link.
To learn more about digital business payments and transactions, read this article.