PayPal changed the world by offering an online exchange of funds between anybody in the world. Now fast forward a decade later and almost every bank offers electronic money exchanges. Some of you are thinking nah physical money will never go away. But I think one day it just might face a horrific demise. Not that I am a proponent of this happening, I am all for holding those green dead presidents in our hands. I just think the tide will turn one day and there is nothing we can do about it, the government will have the last say in this argument. Have you heard recently about BITCOIN and all the hoopla facing this weird monetary vehicle? Well this is the eventful future and not exactly like those coins, but something similar to it. Thus I keep thinking will cash retire?
Have you ever seen an option to send money online now days by your bank? Well they are all pushing for the end of physical cash because then they will have less operating costs. Is this a shock to all of you? I hope not because as you should know banks always want to decrease expenses while controlling the money with tight-fisted grips. A digital age is becoming more prevalent as wire transfers become just as easy to send as having somebody’s email. Soon there will be an app for that as cell phones are holding more power now than a computer for managing finances on a daily basis. Wait that little white device (Square) that can be attached to your cell can accept a credit card payment for services rendered in a summer garage sale. Guess what that device will eventually assist the final retirement party for good old Benjamin Franklin. Don’t say I didn’t warn you, but maybe you will now realize that this could very well be the future of money.
Here are a few facts about; Will Cash Retire:
-Canada got rid of the penny, soon other coins will follow
-USA wants to get rid of all coins
-Direct Deposit is pushed by all employers and government programs. (Social Security/ Disability/ Unemployment)
-Banks only give promotions to new customers when you set up direct deposit
-Retail Companies want you to get their store card (20% off if you do it – One time)
-PayPal money exchanges are growing every day (Be Careful There’s a fee for this service)
-Square is taking over! 6 Billion Yearly in money exchanges- wowzers (It will cost 2.75% of all sales)
-Online Banks like ING offer the same service to send money to others.
-BITCoin ATMs will soon hit a mall near you. (Hopefully a Fad)
-Trillions of dollars are being exchanged everyday by Currency Dealers (Largest Exchange in the world)
-In 1990 Cash and checks consisted of 85% behind all spending; now it is about 39%
-Every day we all are using less and less cash (See a trend)
-In 2010 3.1 billion was paper transactions and 4.8 billion was cards/electronic
What do you think of those facts? If somebody all the way in japan wishes to purchase a product you have listed on EBay, no problem PayPal to the rescue. I feel that one day we will be viewing physical cash in a museum, unless you are a PF blogger and have the foresight to stash a variety of crisp bills in a photo album hoping they will turn into a collectible one day.
Will Cash Retire? Comment below with your point of view on this topic?
Rich Uncle EL
Some facts were found in Fortune Magazine