Even our money has been quarantined.
When the World Health Organization recommended that people wash their hands after handling cash, people began questioning why they carry around those crumpled bills in the first place. Many businesses have encouraged or required card and contactless payments only, causing customers and businesses owners alike to reevaluate the true value of paper money. Is the future of cash in peril?
A Matter of Time
The fact that cash is one of the dirtiest surfaces around is not new. In one Time article from 2017, various studies revealed that dollar bills can carry traces of nearly any unsavory surface you can think of, including bacteria, DNA, E. coli, and drugs. Evidently, cash is a crash pad for germs.
Before the coronavirus outbreak, people’s confidence in cash was already waning. A Pew Research study conducted in 2018 found that nearly half of all participants claimed to not worry about whether or not they had cash on hand, an almost 10% increase from 2015. Another study conducted in 2019 by the Federal Reserve found that noncash transactions — including credit and debit cards, Automated Clearing House payments, and checks — increased by nearly 7% between 2015 and 2018 and accounted for over $10 trillion in transactional value. Card payments accounted for over 75% of those payments in 2018. Even before the pandemic, noncash payments were on the rise.
Payment Security and Privacy
As contactless payment and mobile wallet technologies gain popularity, people are finding fewer reasons to pay with cash and coins. Many believe that virtual payment methods are easier and safer alternatives to carrying cash. However, people are not yet ready to completely ditch cash. A major concern surrounding digital currency is the potential for identity theft and a lack of transactional privacy. Additionally, some people find paying with cash to be more convenient at times, especially when making small charges or tipping.
However, technological advances such as biometric authentication and card chips have improved the safety and security of digital transactions. Europay, Mastercard, and Visa (EMV) cards – which use chips and encryption technology to protect user information – reduce the threat of identity theft and payment fraud. GRUBBRR’s Point of Sale system utilizes EMV card encryption technology to help ensure the privacy and safety of the consumer’s transaction.
Is Cash Dead?
A completely cashless society is not likely to happen anytime soon. It is ultimately at the consumer’s discretion how and when they make a cash, card, or digital payment. However, as technology enables cashless solutions in a variety of new ways, consumers can choose for themselves which payment option best meets their needs.