Still carrying around a wallet full of cash? Here are five reasons you might not be doing that in the future.
Awhile back, we did a video about why digital payments won't replace cash. And many readers rightly pointed out some things very much not in cash's favor.
So this time we're turning the tables and taking the other point of view.
Here are the top five reasons cash will die:
1. Cost. A study from Tufts University in September 2013 found that using cash costs about $200 billion a year in the US. This includes carting the physical money around but also counts things like ATM fees. Not to mention the cost of replacing tons of worn bank notes every year.
2. Digital money is good for the economy. People tend to spend more money when they use cashless payment methods. That's good for retailers so they'll be motivated to prefer non-cash payments.
3. Digital is more sanitary. Coins and bills carry all kinds of germs and dust and move them around between people. Digital payments can be subject to computer viruses only.
4. Digital payments can be faster. With proper authenticating schemes and geofencing, you don't even need to take anything out of your pocket. Compare that to fumbling around in a wallet and waiting on change.
5. Corruption. Governments are already phasing out some bank notes in places like India in order to stop money laundering.
So goodbye notes and other numismatic notions! We're all jumping on the digital train. Well, maybe.