If you have any idea what a cashless society is, you also probably know that they are inevitable. There’s a camp of people that tends to believe that going cashless is a largely negative move. People only believe this because there are a few misconceptions around cashless societies, as well as a lot of assumptions since there aren’t any case studies of a fully cashless society yet. Sweden comes to mind, but they are still at least two years away from being a true cashless society.
So what does a cashless society imply? Does it mean a total wipeout of cash from a nation? Or does it mean that citizens will no longer be allowed to keep cash in their possession? You’ll be relieved to hear that none of this holds true and these lies are made up for the purposes of fearmongering.
What Even is a Cashless Society?
A cashless society won’t demonize the possession of cash or take it out of circulation entirely. A cashless society simply aims to digitize all formal transactions between buyers and sellers. This only means that you won’t be able to use your cash to directly purchase goods and services from a vendor. The transaction will have to be fulfilled via debit/credit card, mobile/digital wallet or any other digital means of payment; who knows, maybe cryptocurrencies will be widely accepted in the near future.
The point being, you won’t be asked to get rid of your cash, nor will it be taken from you. However, there will be far more incentive to digital transactions; cash back offers, discounts, instant refunds, etc.
An Orwellian Future?
Another argument from the adversaries of a cashless society is that the end goal of all of this is to closely monitor and document the financial movements of any individual; essentially drawing a parallel between a cashless society and George Orwell’s 1984. Well, news flash, if you own a smartphone, your personal data and your whereabouts are already being tracked more than you’d like.
Prepaid Debit Cards & Reverse ATMs
Plus, if you want to stay truly below the radar, there is always the prepaid debit card route. These machines called Reverse ATMs already exist that turn your cash into a debit card with balance loaded to it. The best part is that these cards are VISA or Mastercard so virtually any POS terminal will accept them as a means of payment. These cards aren’t linked to your identity in any way.
What About Cash Reliant Customers?
These cash to card machines bring me to the next misconception; alienating the unbanked. No, we don’t believe any government would take such a drastic step as to completely deny services to those that solely rely on cash. We believe Reverse ATMs will become commonplace in a cashless society so the unbanked and cash reliant aren’t completely cut off from the formal economy.
Financial Inclusion, a Byproduct of Going Cashless
Plus, we think Reverse ATMs are a stepping stone towards other financial services like bank accounts and credit cards. Once people sample cashless services via a prepaid card, they’ll be compelled towards opening a proper bank account because of the convenience and added benefits. Yes, Reverse ATMs promote financial inclusion. Additionally, banks are starting to roll out virtual onboardings as central banks begin supporting the infrastructure for completely digital banking.
Fast Tracked by The Pandemic
The Covid 19 pandemic pushed some venues to go cashless well before they had planned because this was the only way they could continue operations without putting customers at risk. Major league sports stadiums like Rogers Centre, MetLife Stadium and Minute Maid Park have already been cashless for a few months now. All of these stadiums are using Reverse ATMs or Cash to Card machines to help facilitate this transition towards cashless normalcy.
So, in short, don’t believe the naysayers and do your own research. Plus, it doesn’t hurt to embrace a cashless future either, just imagine the convenience of carrying one device for both communication and for making payments. Soon all keys will be digital too so you can do away with your keychains and key fobs too.
The future is digital and we can’t wait.
