For at least 30 years, there has been a rumor that cash will soon vanish. Electronic payments have been steadily increasing in recent years. Cryptocurrencies are all the rage, and digital payments are becoming more widespread. Thanks to new technologies like Apple Pay, Google Pay, Android Pay, and Samsung Pay, they now carry their wallets on their phones. Furthermore, online purchasing is expanding, and electronic payments are the only way to pay. Nowadays, it isn't easy to locate a store that doesn't accept credit or debit cards. Even tiny businesses can accept payments on their smartphones thanks to equipment from companies like Square. When people want to pay for a meal or present a gift at work, they now utilize apps like Zelle, Paypal, or Venmo to repay each other. The number of people carrying cash in their pockets appears to be dwindling. Is money genuinely going away with these breakthroughs in electronic payments?
How is cash used nowadays?
According to the Federal Reserve Bank of San Francisco, cash is still commonly utilized for small-value purchases, accounting for nearly half of all payments under $10 and 42% of payments under $25. On the other hand, cash is utilized for around 10% of payments of $25 or more. Cash is used the most by people between the ages of 18 and 25, accounting for 34% of all payments, followed by those 65 and older, who account for 33% of all payments. The percentage of people who use cash is lowest among those between 25 and 44. Furthermore, it's crucial to remember that not everyone has a bank account. Many people do not have a banking relationship, despite the convenience of contemporary banking. In 2017, the Federal Deposit Insurance Corporation (FDIC) stated that approximately 8.4 million homes in the United States lacked a typical bank account, accounting for 6.5 percent of all households in the country. Another 18.7% of U.S. households (24.2 million) were underbanked, which means they held a checking or savings account and used financial products and services outside of the banking system. If you don't believe the FDIC's numbers, consider the concentration of check-cashing and payday loan firms located in low-income and minority neighborhoods. There are fewer opportunities to create a credit history in these places since there are more occasional bank or credit union branches. The rule is simple: banks will not open a checking or savings account if you don't have decent credit.
The security of money
Many people are returning to cash payments to reduce the risk of identity theft and increase their privacy. According to a 2018 survey by Javelin Strategy & Research, 6.64 percent of consumers have experienced identity theft. This equates to about 1 in every 16 persons. Data security breaches in payment registration systems at large shops have become nearly routine. There have also been numerous reports of petrol pumps equipped with skimmers and software meant to steal your credit card information. If you pay cash in a store, there's no way compromised information could lead to someone on the dark web using your payment details to empty your bank account. Criminals can steal money from your account at any time and from anywhere in the technological world. You must be physically present when dealing with cash, and robbers can only take the amount you have in your pockets or purse. Using electronic payments reveals where you've been when it comes to privacy. Some transaction tracking systems can tell you when you last shopped at their store, and others can tell you what other purchases you made at merchants who use their platform. Businesses utilize this information to market and sell you additional goods and services from a marketing angle. Some people consider this a violation of their privacy.
On the other hand, cash cannot be tracked back to a previous transaction and does not reveal your purchasing habits. Some of these sites sell your personal information to third-party advertisers. No one needs to know who you are or where you are when you pay cash.