An interesting debate on the merits and drawbacks of our moving towards a cashless society. Yes, it’s super convenient, for both consumers and businesses, but perhaps not for everyone.
‘Cash is just grief’: why shops and bars want to make you pay by card
From contactless payments at self-service supermarket tills to online banking, it can seem like the digitisation of money is inevitable. But cash is proving curiously resilient. Payments UK reports that it is still used in 44% of consumer transactions and, oddly, as the Bank of England has observed, despite the rate of card transactions soaring and the value of cash payments falling by 10% annually, the volume of cash in circulation is at a record high. The number of British people who deal solely in cash – 2.7 million – is also rising. That oddity is often attributed to low interest rates, people hoarding money after the 2008 crash and a booming criminal economy.
Well, it’s good to see at least one economy booming, right?
Businesses can save time and money with card-only payments, and not having cash on the premises is safer too, but perhaps they like the way we’re more likely to spend more, too?
In a 2016 survey by the financial technology firm ClearScore, 59% of people blamed their overspending on using cards and 72% said that contactless payments make them prone to impulse purchases. […]
“The haptic, physical sensation of handling and spending a £20 note makes you ‘feel it’. With cashless, that is lost somewhat,” says Jez Groom from Cowry Consulting, which researches “behavioural economics”. “The Apple Pay ding you get from your iPhone should be replaced with a vibration calibrated to the amount spent: light for under £10; heavy and consistent for £30.”