According to the 5th annual ING International Survey, cash is fast becoming less popular among consumers in Europe, the US, and Australia. Alternative forms of payment are increasingly gaining more popularity. The survey included responses from 14.692 respondents based in 15 countries. Nearly 27% in Australia, 21% in Europe, and 34% in the US said they mostly preferred cashless payments.
In the US, the usage of cash is becoming less popular, but cash is still the most used method of payment. Based on a recent Federal Reserve study, about 40% of consumer transactions in the US are completed via cash though credit and debit cards and technologies like Apple Pay and Samsung Pay are becoming more popular.
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Going cashless implies both pros and cons that should necessarily be taken into account if you plan to go cashless.
Pros of Going Cashless
As for the pros, to handle cash, you should implement better bookkeeping, organize physical transportation of cash, and more. It’s important to note that most consumers prefer to use credit cards. More people are inclined to purchase more when they use a credit card vs cash purchases.
Cashless payments are convenient for large purchases. Also, cashless transactions are recorded, which makes it easy to track purchases. Moreover, plastic cards can often be recovered. They can be canceled or replaced when lost or stolen. In addition, many cards offer travel insurance, extended warranties, cash-back, and travel rewards. What is more, you aren’t obliged to get cash from an ATM. Finally, when traveling it’s safer and more convenient to use cards.
Cons of Going Cashless
What if the power goes out (like it recently did in Los Angeles during a Summer heat wave), it would be hard to use your POB without any power. Or maybe your business is near a school where lots of customers are high school kids that eat at your burger hut for lunch? Most kids use cash and not credit cards.
Next, there are people/places preferring cash only. Moreover, it may be more convenient to use cash for small purchases. Finally, you may be charged fees by some services for sending money.