A new report from Javelin Strategy & Research says cash is dying, with the percentage of purchases made in cash falling to 27 per cent.
Javelin expects this number to drop even further, to just 23 per cent in the next five years.
Some businesses are phasing out cash payments entirely. According to Huffington Post’s Catherine New, Chicago’s Standard Market decided it would only accept only credit, debit or gift cards. However, judging by the reviews on Yelp, it’ll be a while before cashless revolution gets under way.
Here are some other reasons why going cashless hasn’t gone mainstream:
Trust: Consumers don’t fully trust alternative electronic forms of payment yet, reports BI’s Mandi Woodruff, due to the rising threat of identity theft.
Crime: In a cashless society, reports BI’s Jill Krasny, crime rates may actually rise. Electronic currency can be moved much faster than physical money, making fraud a lot easier to commit, but harder to track.
Expense: If you can’t use cash, then you’ll need to use plastic. The fees and interest associated with credit cards, prepaid cards and checking accounts have been pushing people to forgo them altogether.