Cash is king? Not anymore…
The COVID-accelerated switch from cash to cards, a myriad of new payments systems, and even cryptocurrencies has been dazzling for technology advocates.
But how about those mostly older people who want to hang onto the likes of coins, notes and even cheques to make their payments? Is anyone looking out for them?
Is the cashless society being imposed upon us without adequate consultation and education, or is it the inevitable ‘progress’ that dances to the beat of the digital economy?
It started to hit home for me when cafes and shops would refuse to handle cash, claiming it was a COVID hazard. (Read the science here).
Tap and go became supercharged as the fastest, most convenient way to pay. Now the technology isn’t just on the cards. It’s on mobiles and any number of wearable devices.
With contactless payments routine for even small purchases, you can feel a little strange ponying up a gold coin to pay for a banana.
At the same time, ATM networks are contracting owing to lower demand, and bank branches are closing. In the regions especially, it’s getting more challenging for those who, for whatever reasons, prefer to use cash.
Ironically there has been a record cash hoarding during the lockdowns, especially $100 bills for reasons varying from the nefarious (tax evasion) to the merely cautious (fear of Armageddon.) Read more here.
Cash, for some, is also a handy, trusted and secure store of wealth, even if it might be stuffed under your mattresses.
In the bush, mayors are quoted in The Daily Telegraph as saying their seniors would adopt digital payments but for the poor connectivity and public education level. The National Seniors Australia lobby group says some hundreds of thousands of older Australians still use bank books in one way or another.
Similarly, bank cheques are an endangered species. You can still just use them, but the signs are ominous despite some agencies such as estate agents and charities needing them for payments and donations. Many countries have already axed cheques. See their ‘checkered’ history here.
In short, there is a revolution going on which is welcomed by many, especially the industries supplying the platforms and channels for these payments and taking their clip of the ticket on the way through.
But are we going too far too fast, and is enough being done to protect the interests of those who grew up with cash and don’t want to adopt systems they either don’t know or don’t trust?
Any information contained in this communication is general advice, it does not take into account your individual circumstances, objectives, financial situation or needs.
