Half a Cashless Society: American Consumers Increasingly Abandon Cash

The concept of a cashless society is almost as feared as it is craved; depending on who you ask it’s either the first step to a totalitarian nightmare straight out of the Bible or a necessary step toward a more advanced, more open society. For about 54 percent of US customers who expect to completely abandon cash by 2020, however, it’s obvious what side they stand on, and businesses are going to need to adjust their thinking accordingly regardless of what they personally think about the matter.

Word from Paysafe, who released its Lost in Transaction report recently, found that Americans were already getting ready for a cash-free existence. Fully 54 percent of consumers visited an ATM once a month as part of everyday operations, and one person in seven admitted to carrying virtually no cash at all, instead turning to a mobile payment mechanism. In fact, 63 percent of respondents reported relying on cash less now than they did a year ago.

What’s more, American shoppers are increasingly turning to a variety of mobile shopping methods. Thirty-one percent are turning to new mobile wallet systems, and 14 percent are actively using cryptocurrencies.

While the Paysafe study didn’t stop at the United States—it also covered Canada and the UK, where as we know, mobile payments are taking off like nobody’s business—it shows that shoppers are increasingly disposed to turning to mobile payment systems.

There are some issues here, though, as almost a third—30 percent—of American consumers are concerned about their phones being stolen. Twenty-five percent, meanwhile, didn’t even want to take their phones out of purses or pockets to pay for things to begin with, and that could inherently limit the scope of future mobile payment markets.

So while the mobile payments market is still a growing proposition, it’s clear that there will be some limits to that growth unless workarounds can be established. In a growing market, however, it’s good to know niches like this exist, as they’re a great potential way to set up new market share. It’s just as obvious that mobile payments will carry on for some time to come, thanks to a receptive population ready to put this tool to work.