Have you ever found yourself rummaging through your purse or jeans pockets, trying to find some loose change for your morning coffee? Well, you may not have to worry about that soon! Is there a possibility of America going cashless?
That’s right, no more paper bills or jingling coins! But can a country as big and diverse as America switch over to digital payments?
In this post, we’re going to explore the idea of a cashless society and its pros and cons to help everyone understand what the future may hold. So, let’s look at this pertinent topic without further ado.
How Close Are We to a Cashless Society?
Let’s start by looking at how close America is to being a cashless society. While it seems like a far-off concept, we’re closer than you might think!
According to a recent study by the Federal Reserve, in 2020, card payments surpassed cash payments for the first time ever. That’s right; more people are reaching for their plastic instead of their bills and coins.
But it’s not just card payments that are gaining in popularity. Payments like those made through PayPal and Apple Pay are also becoming increasingly common. These payment methods offer convenience and security that cash simply can’t match.
Plus, with the rise of online shopping, it’s becoming more and more common for clicks. However, we’re not quite there yet. While card and digital payments are on the rise, there are still many places that only accept cash.
Some people still prefer using cash for various reasons. So while we’re headed towards a cashless society, it’s going to take some time before we get there completely.
Is Going Cashless Better?
There’s a big debate on whether going cashless is good. On the one hand, going cashless offers a ton of benefits. For starters, it’s more convenient. You don’t have to worry about carrying around a bulky wallet or ensuring you have enough cash.
So it was going cashless better? Well, it depends on whom you ask. For some people, the increased convenience and security outweigh the potential downsides.
But for others, the potential for exclusion and increased fees makes cash a more attractive option. So, in the end, it’s up to each individual to decide which payment method works best for them.
What Would Happen If We Go Cashless?
While it may seem like a small change, the reality is that moving the United States to a casual society is a pretty significant deal. It will have a huge impact on our economy and daily lives.
If the US were to go completely cautious, it would be a major shift in the way we pay for things. Here are some things that could potentially happen:
- With cash no longer an option, more people would likely turn to digital payment methods like credit cards and debit cards. Other things like mobile payment apps and online payment systems like PayPal would also become very popular.
- Digital payment methods are often faster and more convenient than cash. So people would likely enjoy the benefits of being able to pay for things quickly and easily.
Are There Countries That Are Already Cashless?
So are there countries that have already gone cashless? Well, no country has completely unlimited cash.
However, some have come pretty close. For example, Sweden. In Sweden, cash transactions account for less than 10% of all payments. Instead, most people with this like swish or cards.
Another country that’s well on its way to being cashless is China. Mobile payments are extremely popular apps like WeChatPay and Alipay in China, dominating the market.
Other countries that are making strides toward being cautious include South Korea, Denmark, and Norway.
These countries have fully embraced digital payment methods and are slowly phasing out cash. While going cashless may seem like a scary prospect to some, these countries prove that it’s possible to make the shift toward a cashless society.
What Are the Cons of a Cashless Society?
We’ve mentioned a few benefits of a cashless society as well as a couple of downsides. But we wanted to take a deeper look at the downsides. Here are some of the cons:
- As we said above, digital payment methods may not be for everyone. They could create a new type of inequality where those who have access to digital payment methods have a marked advantage over those who do not have access to them.
- Digital payments are tracked and recorded. That means that companies and governments can potentially monitor your spending habits and use that information for their purposes.
Final Thoughts on Will America Go Cashless
Going cashless in the US would represent a major shift in the way the economy functions. While, as we’ve shown in this article, there are benefits, there are also downsides that have to be considered.
Ultimately, in the end, America is gradually moving to a cashless society. But will it ever completely be cashless? That’s a question that only time will tell.