WHAT IT IS
- Visa is offering restaurants and other small businesses in the food industry $10,000 if they stop accepting cash.
- The money would be used to improve the restaurants’ technology and allow them to accept payments via smartphones or smart watches.
- Visa believes that a cashless society would benefit small businesses immensely. The credit card giant claims that in New York City alone, businesses could generate an additional $6.8 billion each year.
WHY IT MATTERS
Going cashless is a futuristic idea that is becoming a reality. Sweden is the leader in this global trend and is projected to be a cashless society by 2030. Innovations like Apple Pay, Venmo, and general online banking apps are starting to make cash more obsolete. Visa creating this initiative amongst small businesses does pay off dividends, for their processing fee revenues would increase immensely if cash disappeared from the economy.
WHERE WE ARE NOW
- The emergence of cryptocurrencies, like Bitcoin.
- 24% of Americans make most/all financial transactions in cash. This number was 36% five years ago.
THINGS TO THINK ABOUT
- The trust issues between Americans and the U.S. government when the US went off the gold standard.
- The cashless society debate also depends on which country you are talking about. It might work in Sweden, but might not work in Argentina where bank corruption led to many people losing their savings.