Will Future Generations Be Completely Cashless?Posted August 1, 2013 in Economy
With cash transactions only accounting for 20% of transactions in 2009, compared to 50% in 1990, many experts believe we are quickly moving towards a cashless society.
Not only are we using credit cards for almost everything, but we are also increasing our online shopping and banking – leaving our local ABMs sad & lonely. Think about it, when was the last time you had to wait in a long line for the ABM? In ten short years we have seen a dramatic decline in the use of cash. But, will this trend continue, leaving future generations completely cashless?
Cash is definitely losing it’s title as King, leaving the throne open for the more convenient debit & credit cards. Yet, there will always be times when a credit card just won’t do…even in the future!
Top 5 Reasons You Will Still Need To Carry Cash
Lotto Tickets – If you want to grab yourself 64/9 Quickpick, for a chance at the latest jackpot, you’ll definitely want to pay with cash. Using a credit card to pay for lottery tickets is considered a cash-like transaction – which most card issuers treat as a Cash Advance. And remember, there are additional fees & interest rates for cash advances – making that lottery ticket way more expensive than you realize. While you may not mind paying extra if you end up the solo winner, you’ll probably want to pay cash just in case the lightning doesn’t strike you this time.
Tips – You can add on a 15-20% tip for the waitstaff on to your credit card transaction at your local bar or restaurant, but you may not be able to do the same when the hotel brings your bags up to your room. So, until bellboys start swiping credit cards for tips, you’ll still need to carry cash – especially when traveling.
Lemonade Stands – The neighborhood kids down the street set up a cash only business on the side of the road, peddling some mixture of lemons, water & sugar. You want to help develop the entrepenuer within, so you stop to buy a cup. We don’t foresee the mini-entrepenuers of the future figuring out point of sale payments – so if you want to contribute to their futuristic BMX bike, you’ll most likely be stuck paying cash.
Ice Cream Cart – You hear the infamous song playing in the distance and automatically revert to childhood, panically scrounging for change. The ice cream man! The ice cream man! Hurry, hurry, the ice cream man is coming. Even though a lot of food vendors are switching to payment systems, like Square, most ice cream cart vendors can’t afford to accept credit cards. Whether it’s you, your child, (or both) that’s craving a pre-packaged sweet on a stick, you’ll still need some loonies or toonies to enjoy that frozen treat.
Supporting Local Dance Group – If you frequent establishments that feature local dancers of the exotic sort, you’ll need cash for the cover charge, not to mention some bills to demonstrate your approval & appreciation. We’re guessing it will continue to be a cash based business for years to come, as we don’t see staff carrying portable payment machines around their neck.
What Do You Think?
Are there other cash only transactions that remain for years to come? How do you think future generations will be paying for items? Let us know in the comments below…