July 23, 2019
Article
Harvard Business Review (website)

Is the U.S. on Its Way to Becoming a Cashless Society?

Format:Electronic

Abstract

The rise of digital payments, including credit cards, debit cards, and mobile payments systems, have contributed to the steady shift in payment practices among consumers. According to the FDIC, cash represented just 30% of all payments in 2017, and the percentage of U.S. households with a credit card jumped by more than 5 points between 2015 and 2017. Business owners who recognize this trend are responding accordingly, with some opting to go entirely cashless in an effort to increase operating efficiency, reduce wait times for customers, and create a safer work environment by mitigating the risk of theft. However, driven by concern for those without access to banks and cards, legislation in some cities is limiting the move to go cashless. This article cites several factors managers should consider as they mull whether to continue taking cash and predicts that the full move toward a cashless society is unlikely anytime soon.