Time For....

[Port Said Red]

..The cashless society?

Something that is approaching rapidly in my opinion, and increasing in speed since COVID, as people became aware of what a vector it can be for diseases  You have to wonder how much it will cost the treasury to produce new notes and coins with King Charlie on, and how much precious resources, time and security features it takes to produce legal tender anyway. Electronic is the greener option.

The only thing really standing in the way is that generation that technology has passed by, but I don't think there are many that can't use a debit card these days. People eventually got to grips with decimalisation after all 

This might be a good time to start phasing out though. More and more shops are taking the unilateral decision to go cashless, Starbucks being the latest, less danger of being robbed, less time counting takings and so on.

Payment technology is being used on market stalls and even by Big Issue sellers these days. I used a cash machine yesterday to put a £10 note in a birthday card and realised it was the first time I had used one this year!  I only did it because I couldn't find a specific gift card at short notice. 

It's the future isn't it?

[Barrs Court Red]

It’s still to often payment systems go offline

[BS2 Red]

14 minutes ago, Barrs Court Red said:

It’s still to often payment systems go offline

That's the issue I'd have with going fully cashless. A power cut, or an error on the servers and we are stuck.

 

[Taz]

Wife mentioned about a baby/child preowned sale near us this weekend, but then said "it's a cash only sale".

Don't have a problem with that whatsoever, but for that reason, I don't think you can ever get rid of cash.

Ever been to a car boot sale and paid 10p for a rusty screwdriver with your contactless card? Ever purchased/collected something off a local selling page on Facebook?

Cash isn't going anywhere.

[TonyTonyTony]

I never have cash on me. I don't use it. Who uses it nowadays?

[Slacker]

7 minutes ago, TonyTonyTony said:

I never have cash on me. I don't use it. Who uses it nowadays?

People that buy rusty screwdrivers from car boot sales.

[TonyTonyTony]

2 minutes ago, Slacker said:

People that buy rusty screwdrivers from car boot sales.

I prefer non-rusty screwdrivers from B&Q myself

[phantom]

17 minutes ago, TonyTonyTony said:

I never have cash on me. I don't use it. Who uses it nowadays?

Same as me, the only time I have cash on me is if I win the bonus ball draw in the local bar

[Port Said Red]

This Guardian article from last year suggests that only 1 in 6 transactions were cash, I wouldn't be at all surprised if that trend is continuing and those figures higher by now.  

https://www.theguardian.com/business/2021/jun/16/cashless-society-draws-closer-with-only-one-in-six-payments-now-in-cash

[Silvio Dante]

Working in financial services this subject comes up regularly. 
 

The things that the Banks (really) and the FCA are concerned about in any move to cashless is vulnerable people and financial exclusion. It’s probably easier to defraud people who aren’t as tech savvy, and as a cohort, the less tech savvy and more cash reliant are the older in society. Doing away with cash, as a whole, would exclude people from “society” so it will always be there. There is also the point of some people being able to budget better with cash in their pocket than a debit card (think of when you’ve been to the pub and how easy it is to spend)

At the very simplest end of the scale, can you imagine leaving a record of a telegraphic transfer as opposed to 50p from the tooth fairy..

What is undeniable though, is two things. Firstly, for businesses it’s more secure to be cashless. No need for safes, the trip to the bank etc. Even ice cream vans use Sumup now. Secondly, as time moves on, less and less transactions will be cash - children will grow up using debit cards as the norm, and that elderly group will make up a smaller cohort.

Its not going anywhere but it’s going to reduce markedly.

[Port Said Red]

1 hour ago, Silvio Dante said:

Working in financial services this subject comes up regularly. 
 

The things that the Banks (really) and the FCA are concerned about in any move to cashless is vulnerable people and financial exclusion. It’s probably easier to defraud people who aren’t as tech savvy, and as a cohort, the less tech savvy and more cash reliant are the older in society. Doing away with cash, as a whole, would exclude people from “society” so it will always be there. There is also the point of some people being able to budget better with cash in their pocket than a debit card (think of when you’ve been to the pub and how easy it is to spend)

At the very simplest end of the scale, can you imagine leaving a record of a telegraphic transfer as opposed to 50p from the tooth fairy..

What is undeniable though, is two things. Firstly, for businesses it’s more secure to be cashless. No need for safes, the trip to the bank etc. Even ice cream vans use Sumup now. Secondly, as time moves on, less and less transactions will be cash - children will grow up using debit cards as the norm, and that elderly group will make up a smaller cohort.

Its not going anywhere but it’s going to reduce markedly.

So with this in mind, do we produce less notes and coins now?

[Silvio Dante]

1 hour ago, Port Said Red said:

So with this in mind, do we produce less notes and coins now?

Yes, AFAIK - simply less need. All you have to do is look at the reduced number of bank branches and cash machines. The cash that was in circulation through those has to go somewhere if it was being replaced.

In practical terms, the Bank of England would issue a certain number of “replacement” notes each year (as opposed to fully withdrawing which happened with the polymers) and all that’s happened is that’s scaled down. When Charles III starts appearing on coins whats produced will be interesting.

Of course, the natural progression to this is if coins/cash don’t exist then is money/wealth actually real or a construct. And that’s a really interesting conversation…

[Midred]

2 hours ago, Silvio Dante said:

Yes, AFAIK - simply less need. All you have to do is look at the reduced number of bank branches and cash machines. The cash that was in circulation through those has to go somewhere if it was being replaced.

In practical terms, the Bank of England would issue a certain number of “replacement” notes each year (as opposed to fully withdrawing which happened with the polymers) and all that’s happened is that’s scaled down. When Charles III starts appearing on coins whats produced will be interesting.

Of course, the natural progression to this is if coins/cash don’t exist then is money/wealth actually real or a construct. And that’s a really interesting conversation…

You're forgetting the Franklin Mint special editions!