The cashless society has long been awaited, yet it has taken longer than some analysts predicted. Yet the emergence of Fintech and online services has seen transformative changes across all sectors when it comes to payments. So, how close are we to a cashless revolution?
Are We Close to Cashless Right Now?
Cash may no longer be king, as more and more services are making their way to digital and card payments only. Supermarket chain ASDA recently announced that 46 stores will go cashless in the UK. Furthermore, digital currency is being accepted more, and you can even purchase cryptocurrency on the fly from a Bitcoin ATM. Cashless POS services are fast and convenient and stand as the main reason why 40% of Americans have gone entirely cashless.
Small Businesses are Onboard
The cashless revolution has seemingly begun, and even small businesses are addressing changes. A survey in the UK found that 47% of SMBs surveyed believe a completely cashless society is very close to coming into being. The ways to pay those small businesses are gearing towards include standard chip and pin cards. However, some are also considering the option of accepting digital wallets such as Google Pay, and others think cryptocurrency is a good idea.
The Cashless Society and Fintech
Paying digitally and cashless isn’t anything new. However, it is becoming more common. Fintech services are required to facilitate transactions using advanced features such as digital, and provide the needed cybersecurity. In the UK alone, 10% of transactions are now made using digital wallets. And the sector is expected to grow by 9.52% over the next four years. Fintechs are at the forefront of the revolution, providing efficiency, transparency, and speed.
Some are Being Left Behind
Going cashless in society is almost a necessity and a natural progression, given the state of the world we live in. Technology plays a crucial role in everyone’s lives, whether it is apparent or not. However, the most vulnerable in society may not understand the changes or fail to keep up with them. Older people, for example, may not understand how digital payments work, which is affecting people right now as many services are card or digital only, and banks add charges.
The Future of Cash Availability
Digital services and Fintech offer huge convenience and efficiency over cash-based services. However, there is a real-world impact of such a major shift. The past few years have seen bank branches dwindle to meager numbers, causing job loss and community disadvantages. The UK government has vowed to “keep cash viable for the foreseeable future,” but what this really means is anyone’s guess. The fact remains that cash is disappearing in favor of digital.
Summary
Recent events, such as ASDA no longer accepting money over card payments, mean we are closer to a cashless society than we have ever been. Fintech advancements and solutions facilitate safer, faster, and more efficient ways to pay using digital currency. Yet, as good as this is for the consumer, the loss of cash-based services costs communities and jobs.
