The first use of cash was for bartering. This was the first-ever use of paper money. From there, we have seen the growth of credit and debit cards; now we have the advent of smart cards, or, more commonly referred to, RFID (Radio Frequency Identification) or NFC (Near Field Communication).
In the early days of the credit card, a cash-only system was the norm. Merchants had little incentive to accept credit cards since they only worked when customers paid cash. Today, however, credit cards are more widely accepted than debit cards in the age of credit cards. Over the last ten years, the amount of money that banks and other institutions have printed and lent out in the form of money has never been more significant. It is now almost $50 trillion.
In the last few years, the convenience of paying for purchases simply by scanning a code has grown in popularity. A typical example of this is the convenience of swiping your credit card or debit card via iPhone. This has even extended to some banks and credit cards that have taken the comfort of swiping your card and made it so that you can push a button on your phone.
The future of cash? It’s a bit of a challenge. Cash is an easy way to carry money. But when we think about a lot of cash, the convenience of being able to pay for purchases simply by scanning a code and the convenience of sending and receiving money with the push of a button, it just isn’t cash.
The younger generation, or millennials, are cashless. It is almost impossible for them to imagine life without a plastic card. The future of cash? In reality, the answer is not about cash but more about the ability to make purchases quickly and instantly. We have seen the introduction of Bitcoin and other cryptocurrencies as one of the many ways that we can easily make purchases; however, in the future, we can expect these cryptocurrencies to be the norm and not the exception. It’s no secret that cash is a dying form of currency. In the next few years, it will likely become even more obsolete with the use of credit cards or even debit cards. But for some, cash is something they will carry with them for the rest of their life.
Why may cash be obsolete in future?
In the next few years, cash may become obsolete for the most part. In the past, money has served to transfer funds from one person to another. However, this is no longer the case. In the future, credit and debit cards will likely replace cash and be used in this manner.
In the future, we can expect that we will not have the benefit of using cash, as we will have more opportunities to use credit cards or debit cards to make purchases.
The rise of electronic payment methods
The rise of electronic payment methods has created a need to develop and use more advanced financial technology. The future generations will use mobile payments, cryptocurrency and peer-to-peer transactions to help companies make purchases, process money transfers, and help individuals pay for things.
It is because credit and debit cards are becoming more and more popular. Many companies are using the convenience of credit and debit cards to increase their business through omnichannel marketing.
The fight against crime
The second issue discussed is that criminals have used cash to launder money. In the past, they have been able to use it to buy goods that have value in the system, even though they don’t have a receipt.
The majority of banknotes are printed on paper, a common material used to print illicit drugs. According to the FBI, from January 1, 2014, to August 31, 2016, about $1.2 trillion was stolen through the use of bank cards.
Why may cash remain a thing in future too?
Cash is a convenient and easy form of payment. Even though cash is a dying form of currency, it is still the most common form of payment used globally. It’s not uncommon to use cash to pay for a lunch or a simple coffee. It’s also not uncommon to make small purchases without using a debit or credit card. It is safe and secure to use cash for purchases.
There are many reasons that cash should remain an option for people.
Cash remains the primary medium of exchange among the poor
One of the most important reasons that cash is still the best option for people is because they don’t have access to technology. The main reason cash remains the primary medium of exchange is that the poor are more likely to use cash for payments.
Still today, most people either have no other option than to use cash or if they have, they don’t have enough awareness regarding it.
Privacy
Privacy was the main reason people preferred cash because it offered more privacy than electronic payment methods. Privacy is an essential concern in today’s world. The more people use cash, the more privacy they have.
Privacy is a variable depending on individual preference. But there’s no doubt cash affords more privacy than electronic payment methods.
Conclusion
The main reason cash remains the primary medium of exchange is that the poor are more likely to use cash for payments. Electronic payment methods are better for the rich or anyone else who can afford to use them. The majority of people don’t have them and cannot use them.
In the past, banks and credit unions are the ones that have used the most cash. However, with the rise of electronic payments, this has changed. The biggest concern I can think of is that if people are not using cash, they will not get the jobs they want. Banks and other financial institutions have realized that they can replace these jobs with technology. Most financial institutions have already gone through moving to more technologically advanced forms of payment.
Cash remains an essential part of the financial system. It is used not only for cash withdrawals and deposits but for many other functions such as tolling and paying taxes, but the future of transactions is to be cashless. From the customer’s point of view, this means that there is no need for you to wait for the person in front of you to complete the transaction.
So what does the future of cash look like? Well, as technology increases, so do the possibilities. For the most part, the only way we will use cash in the future is if the bank or credit card machine goes down.
