A cashless world is in plain sight. Three steps to make it work (2024)

FAQs

A cashless world is in plain sight. Three steps to make it work? ›

A cashless society is a concept in which money changes hands through digital means rather than physical banknotes or coins. In practice, this would look like customers going about their day—buying coffee, paying bills, shopping for groceries—without ever touching a bill or coin.

A cashless society is a concept in which money changes hands through digital means rather than physical banknotes or coins. In practice, this would look like customers going about their day—buying coffee, paying bills, shopping for groceries—without ever touching a bill or coin.

Elderly people may be less comfortable with tech and less able to make the switch from physical currency. Rural communities could also be left vulnerable, because of poor broadband and mobile connectivity. People with low income or debt tend to find cash easier to manage too.

Similar rates have been recorded across other Scandinavian nations, while Hong Kong predicts cash will account for only 1.6% of point-of-sale (POS) transactions by 2024. But despite this global shift away from tangible currency, the US isn't likely to transition officially any time soon.

The only way to pay for stuff in a cashless society is through digital transfers. These transfers can be done with debit or credit cards or through digital wallets (think Cash App, Zelle, PayPal, Google Pay, Venmo and Apple Pay).

And, if you're interested in going cashless, we can help you compare quotes from EPOS system providers. Just fill in our quick form. Norways is the most cashless country, with only around 2% of payments being made by cash, and 100% of the population having a bank account.

Will a U.S. CBDC replace cash or paper currency? The Federal Reserve is committed to ensuring the continued safety and availability of cash and is considering a CBDC as a means to expand safe payment options, not to reduce or replace them.

On one hand, transitioning to a cashless system can reduce crime rates, streamline financial transactions, and simplify international payments. On the other hand, it raises concerns about privacy, cybersecurity risks, technological dependency, economic inequality, and the potential for increased overspending.

In less than 20 years, China has, with impressive speed, closed the gap with Britain in terms of a cashless society, Matthews noted. This has shown how fast the technology of cash-free transactions and payment has moved in China and how quickly the Chinese society has accepted it, he said.

Why Eliminate Cash? Cash can be used in criminal activities such as money laundering and tax evasion because it is difficult to trace. Digital transactions or electronic money create an audit trail for law enforcement and financial institutions and can aid governments in economic policymaking.

Which banks are going cashless? ›

ANZ, Commonwealth Bank and NAB have already begun phasing out cheques. Bankwest is moving to a digital bank this year, as the bank prepares to shut 45 branches in Western Australia by October.

Poor people who rely on cash to ensure that they budget properly. Anyone in an abusive relationship who may lose financial independence without access to cash. People with physical or mental health problems who find using digital services difficult.

A cashless future enabled by technology

We may not be a cashless society by 2060, much less by 2030. But the fact is we're closer to becoming a nearly cashless society every day. The transition from a mostly cash to nearly cashless society didn't happen overnight.

A cashless society would rely on a complex network of digital systems, which would be vulnerable to cyberattacks. If these systems were hacked, it could have a devastating impact on the economy. Privacy is the third challenge raised. Cash can be exchanged anonymously, leaving no digital trail.

Sweden. Although it was the first country to issue banknotes, Sweden is the most cashless society in the world today, with just 32 ATMs in operation per 100,000 people, and with more than 98% of its citizens own a debit/credit card. It also ranks as one of the top countries utilising mobile payments.

Japan is well-known for its technological advancements, but when it comes to cashless payments, it lags behind its neighbors and other economies. Cash is still king in Japan, but digital payment usage is steadily gaining traction.

Cashless technologies could be some of our greatest assets in the fight against corruption and organised crime, too. And, once again, the people who stand to benefit most are those who are most in need. There are 1.4 billion people in the world who have to make do with less than $1.25 a day.

Sweden is often regarded as the closest to becoming a truly cashless society. Here, the cash transactions account for less than 10% of the total value of payments made. The widespread adoption of mobile payment apps like Swish and the ability to make card payments virtually everywhere has driven this shift.

One of the most effective ways to make money in a cashless economy is to start a digital business. With the rise of e-commerce, there are numerous opportunities for entrepreneurs to create online stores, sell digital products, or provide online services.