Are we ready for a 'cashless' society ?

[Ali Gator]

A short while ago, I read an article in USA TODAY about how we are fast approaching a 'cashless' society.  TARGET stopped taking checks for a form of payment on July 15 of this year, and they say the customers who complained the most were Boomers and GenXers. Many stores went 'cashless' during the pandemic, when they believed cutting back on the exchange of paper money and coins would somehow protect customers and employees from spreading germs (though the handling of merchandise between employees and customers seemed perfectly fine). They favored method of payment among the younger generations (Millennials and Zoomers) are Credit Cards, Debit Cards, and electronic pay phone apps (such as Zelle, Venmo, PayPal, etc.).

 

This morning on NPR, they discussed this in their 'marketwatch' report. They agreed the younger generation - especially the Zoomers - have moved away from cash, and pay with credit cards (not even debit cards) and phone apps (quite often linked to a cc). A few of the 'commentators' suggested the rise in credit card usage by Zoomers is why that generation has 'the highest amount of low credit scores, as well has highest amount of credit card defaults (missing / late on at least two payments). According to the NPR report, more than 25% of Zoomers aged 18-30 are in default of their credit card payments. Millennials were slightly lower (but not by much) while Boomers and Xers were more in the 10% and below range when it came to credit card defaults. 

It's an interesting snapshot of the economy, and how we go about paying for items. Thoughts ? 

[+ DynamicUno]

I can't believe GenXers are complaining in significant numbers about Target not accepting checks. I stopped writing checks years ago and don't know anyone in my age group who hasn't switched to other payment methods.  

Checks are not the same as cash, however.  Retailers certainly don't consider checks as good as cash, they are the riskiest payment method.

I still see customers paying with cash, but less frequently since retail prices have soared in recent years.  It's less convenient to pay with cash when getting a few things at the supermarket now routinely exceeds $100.  People have to remember to hit the ATM more frequently before shopping and using a debit or credit card is perceived as more convenient.

As for Zoomers having worse credit than older cohorts, that's easily attributed to many of them having less consistent incomes and lower paying jobs (i.e. shiftwork or gigwork) since many are still getting established. They're using credit cards the same way older people used "float" years ago, deferring payments until they have been paid, and sometimes finding themselves short when the bills are due. Also splitting a restaurant tab is less hassle when everyone can settle up using Venmo than pooling cash and trying to make change when almost everyone has 20s and no smaller bills.

In short, cash usage has declined as even small trips to the store are more expensive, but I don't see it going away any time soon. Generational trends are more attributable to where people are at economically, and their comfort level with newer payment methods.  Checks will become a niche reserved for mostly business payments and slowly disappear as the boomers shuffle off the mortal coil.

 

[+ DERRIK]

I love paying with Apple watch 

 

[+ Vegas_Millennial]

10 hours ago, Ali Gator said:

A short while ago, I read an article in USA TODAY about how we are fast approaching a 'cashless' society.  TARGET stopped taking checks for a form of payment on July 15 of this year, and they say the customers who complained the most were Boomers and GenXers. Many stores went 'cashless' during the pandemic, when they believed cutting back on the exchange of paper money and coins would somehow protect customers and employees from spreading germs (though the handling of merchandise between employees and customers seemed perfectly fine). They favored method of payment among the younger generations (Millennials and Zoomers) are Credit Cards, Debit Cards, and electronic pay phone apps (such as Zelle, Venmo, PayPal, etc.).

 

This morning on NPR, they discussed this in their 'marketwatch' report. They agreed the younger generation - especially the Zoomers - have moved away from cash, and pay with credit cards (not even debit cards) and phone apps (quite often linked to a cc). A few of the 'commentators' suggested the rise in credit card usage by Zoomers is why that generation has 'the highest amount of low credit scores, as well has highest amount of credit card defaults (missing / late on at least two payments). According to the NPR report, more than 25% of Zoomers aged 18-30 are in default of their credit card payments. Millennials were slightly lower (but not by much) while Boomers and Xers were more in the 10% and below range when it came to credit card defaults. 

It's an interesting snapshot of the economy, and how we go about paying for items. Thoughts ? 

It was thought we would be a cashless society with the invention of checks.

Retailers not accepting checks is a sign that within a half century retailers will not be accepting digital payment applications.

Cash is king. 

The poor use cash. 

The poor are susceptible to bank fees to cash their paychecks or to use their government assistant payments.  More and more businesses are reverting away from credit cards, charging customers a fee for payments other than cash.

In New York State, a recent law makes it illegal for any business to not accept cash.

Edited yesterday at 12:58 PM by Vegas_Millennial

[Ali Gator]

Quote

In New York State, a recent law makes it illegal for any business to not accept cash.

I thought I heard/read  that most vendors at sports stadiums in NY and other states no longer accept cash. I wonder if they're exempt ?

 

[BuffaloKyle]

28 minutes ago, Ali Gator said:

I thought I heard/read  that most vendors at sports stadiums in NY and other states no longer accept cash. I wonder if they're exempt ?

 

They don't accept cash at the sports stadiums by me but I just googled to see this law and I did read that they can have a machine on site to convert cash into a card to use at vendors. I did see that machine at the Triple A ballpark here and at the County Fair this summer.

[PhileasFogg]

I’ve not used cash for decades.  In the pandemic, I stock piled about $4,000 cash in my safe and didn’t visit an ATM for nearly 4 years.

there is one more recent evolution of cashless society I like.   Now when I park my car at en event, they read my license plate and charge based on my exit time.   No more cramming quarters and dollar bills in that little slot on the kiosk. 

Edited 12 hours ago by PhileasFogg

[mike carey]

20 minutes ago, PhileasFogg said:

I’ve not used cash for decades.  In the pandemic, I stock piled about $4,000 cash in my safe and didn’t visit an ATM for nearly 4 years.

there is one more recent evolution of cashless society I like.   Now when I park my car at en event, they read my license plate and charge based on my exit time.   No more cramming quarters and dollar bills in that little slot on the kiosk. 

I use cash irregularly and I'm quite happy to use electronic means of payment. I resented the surcharges some businesses apply but I've since accepted it is what it is (even though they suck up the cost of handling cash). Charging them is illegal here if they don't accept cash, but it seems not to be enforced. The regulators are looking at banning them.

Several years ago the airport here installed gates where you could insert your card on arrival and the same one on departure and they charged for the elapsed time, and most shopping centres seem to scan your number plate, then you type it into the machine to get your exit ticket. Helps if you can remember your registration number. I'm happy with those developments. One of my credit cards sends a message to their app on my phone whenever I pay something with it. It's still kind of mind blowing if I pay $3 for parking my phone beeps straight away to tell me I've done it.

[PhileasFogg]

1 hour ago, mike carey said:

. One of my credit cards sends a message to their app on my phone whenever I pay something with it. It's still kind of mind blowing if I pay $3 for parking my phone beeps straight away to tell me I've done it.

If you enjoy that, awesome.   I set mine to a minimum threshold so it’s a backstop to my card being compromised (which has only happened once in 20 yrs). 

[pubic_assistance]

On 9/17/2024 at 10:12 PM, Ali Gator said:

the younger generation - especially the Zoomers - have moved away from cash, and pay with credit cards (not even debit cards) and phone apps

I have a friend who's 28. He claims he hasn't touched cash for years. He pays virtually everything with his phone. Doesn't even carry a wallet with credit cards. If a place doesn't accept his phone app, he just walks away and goes somewhere else.

[marylander1940]

When it comes to escorting cash is (still) King!

Untaxable and untraceable!

Back to subject: I know many guys under 30 who never even owned a check let alone using one.

 

 

[+ Vegas_Millennial]

8 hours ago, pubic_assistance said:

I have a friend who's 28. He claims he hasn't touched cash for years. He pays virtually everything with his phone. Doesn't even carry a wallet with credit cards. If a place doesn't accept his phone app, he just walks away and goes somewhere else.

I do the same but I'm reverse. 

If a business does not accept cash, I walk away and find a business that does.  But first I offer them cash, so they know why they are losing my business.  The only exception is travel which I must pay for in advance (airline, hotel, and cruise reservations).

[BSR]

On 9/18/2024 at 5:57 AM, Vegas_Millennial said:

The poor use cash. 

The poor are susceptible to bank fees to cash their paychecks or to use their government assistant payments.  More and more businesses are reverting away from credit cards, charging customers a fee for payments other than cash.

In New York State, a recent law makes it illegal for any business to not accept cash.

I wonder if requiring businesses to accept cash should be a federal issue because all currency is US legal tender.

I agree that the trend to a cashless society discriminates against the poor.  The poor have it tough enough as it is.  I hate seeing anything, like not accepting cash, that makes things even harder for them.