Wild Card

 The Rise of Mobile Payment: Are We on the Cusp of a Cashless Society? 

In the age of technology, many aspects of everyday life are changing. For example, in 2006, many people began paying their bills online. One noticeable change would be the significant shift from shopping in stores to online. For several decades, credit and debit cards have been used to make payments instead of cash, changing how payments are made. Today, many people use cell phones to pay for store products or peer-to-peer payments. Due to this change, some Americans have stopped carrying cash. Many speculate that this trend will cause the United States to become a cashless society. 

In October 2022, Pew Research Center released a study, "More Americans are Entering a 'Cashless' Society." The statistics in the study are intriguing; 41% of Americans say that they use cash for none of their purchases, which is 12% more than in 2018. Though 44% state they use cash for some assets, that number is dropping. 

There are several ways that people make mobile payments. Those who own an iPhone can use an Apple Wallet. According to Apple: 

"It's where you securely keep your credit and debit cards, driver's license or state ID, transit cards, event tickets, keys, and more - all in one place. And it all works with iPhone or Apple Watch, so you can take less with you but always bring more."

The wallet can also contain your transit tickets, boarding passes, theme park tickets, movie and live event tickets, home keys, car keys, and hotel keys while protecting your information. 

Many apps are available for mobile payments. For example, apps such as CashApp, PayPal, Venmo, etc., link to your bank account, and users can make payments online or in-store. The cash received from others can also be moved to your bank account immediately with a small fee.  

The rise of these apps and payment options vary by generation. For example, it is more likely to see users 18-49 using mobile payment than those over 50, according to Pew Research Center. Generation Z is the most open when it comes to payment options online. 44% of Gen Z say mobile wallets are as safe as physical ones. 

Although a cashless society is only speculation, there would be many benefits. One of the main reasons a cashless society would be beneficial would be convenience. Pulling out your cell phone to make payments is more accessible than using your wallet. Also, everything can be found in one place. It is important to remember that each person must protect their assets through their phone. For example, two-factor authentication is essential to safeguarding online finances. A cashless society would also benefit law enforcement in lowering financial crimes such as money laundering. There would be a record of all transactions, which would also prevent tax evasion and those hiding their income from the IRS. 

Though, there are risks and cons to a cashless society. The benefit of having every transaction recorded also brings a lack of privacy. Also, with any information stored online, there are security concerns. There is also the issue regarding low-income individuals who cannot afford smartphones, especially the homeless. 

Because online payments are not available to everyone, stores that refuse to accept cash have been banned in many states. In January, a Seattle-area lawmaker introduced legislation to do just that. Metropolitan King County Council Member Jeanne Kohl-Welles presented a proposal stating that stores must accept cash on payments up to $250 for a single transaction. The proposal states: 

"People who are unbanked or underbanked, as well as those who might prefer to use cash for some purchases, might find it difficult to purchase from retailers that use a cashless model and might be limited in the food, consumer goods, and consumer services they can procure."

A cashless society would bring many benefits to Americans; it would also prevent those with low incomes from making transactions. Many hurdles would have to be jumped before a cashless society can happen. Furthermore, there are many benefits to cash, including privacy, freedom of autonomy, and budgeting. Many people still enjoy carrying cash and like having options for making payments. Nevertheless, cash will be here to stay, for at least a while, despite the rise of mobile banking.