THE FUTURE OF CASH
For many centuries and decades cash has been the most used payment method in the world, it comes as coins and bills used to represent it. Cash has some benefits and it is still used by some people who prefer traditional payment methods.
Advantages of traditional payment methods
Within the advantages of the use of cash you find: no commissions or extra fees, if you are in a physical store the transaction is immediate, all stores and many online stores accept cash as payment method, you don’t have to share sensible data such as cards information or bank accounts information, etc.
Despite of the remaining advantages cash can have, people and businesses are shifting from cash to digital payments since it offers even more benefits and advantages that cash transactions. The future of cash is uncertain, however there are some hints economists have been detecting to define the future of cash. First of all, the new generations are choosing electronic methods to move their money transactions, this means that these generations will teach their children how to use digital money more than cash.
The advance of electronic payments
To continue with, digital payments improve and emerge (new ones) every day and make payments easier, faster and more efficient which makes people feel more attracted to change their traditional payment methods. There is one relevant example of how cash is becoming less used: the everyday advancing of electronic payment methods; after the use of cash for years, bank and financial institutions brought credit and debit cards to the world and became very popular due to their comfortable use for payments online and physical stores.
Nowadays, not only digital payment methods arose but also digital money like cryptocurrencies, they do not have any physical representation, but they are now accepted as payment method in many stores and online commerce in the world.
That is why the future of cash even if uncertain it can give us clues about what can happen in the future years with the new generation of digital users. Can cash become obsolete and disappear? Some experts believe this is not possible, however the rise of the electronic commerce cannot be ignored.
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