Cashless Wallets:
What is the Future of Money and Are We Ready For It?
P
erhaps it is not too far fetched a thought that not so far from today, money as we know it — banknotes and coins that we carry with us — will be considered outdated or even collec ble? “We’re living through an incredible global social experiment that is forcing governments, businesses, and consumers to rethink their operating models and norms for social interac ons,” said Morten Jorgensen, director of RBR, a consulting firm based in London, which specializes in banking technology, cards, and payments. “We have a world in which there is less contact. People’s habits are changing as we speak.“ Before the coronavirus pandemic, cash was used for as much as 80 percent of the transac ons in Europe. However, the fear of handling paper
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money that may be contaminated with Covid-19, as well as an immense growth of e-commerce, has accelerated the trend towards a cashless society. As a result, Visa reported that ATM use is already down by 32 percent, and 63 percent of consumers say they’re using less cash. At the same me, the number of ac ve Visa cards being used for e-commerce jumped by 30 percent. Brian Cole, head of North America products and solu ons for Visa noted that “It's just been like 3 years of digital commerce growth being pulled forward into 3 months. People are making purchases that they would have made in person, but they’re making them online now.“ The fear of using banknotes and coins due to the coronavirus pandemic was so real that some countries — like
South Korea — went even further: banknotes have been disinfected and placed in quaran ne, basically leaving no other solu on rather than use cashless payment methods. However, as people believe that contactless payments can help promote social distancing during the pandemic and save from ge ng bacteria, there are a few disadvantages of a cashfree world to keep in mind. For starters, electronic payments are not as private as cash payments: the more informa on you have floa ng around online, the more likely it is to get in bad hands. In a cashless society, everyone is more exposed to hackers. Also, various technical problems could leave you without the ability to pay for things and services when you need it the most. What is more, the
