I often wonder about the dilemma of managing a cash-less society.  How do we handle the intransigent people that demand their control over the payment system?  These are people that have a vested interest in controlling all matters related to their lifestyle. Surely they have rights as well?

Firstly, I must state that I respect these people and their ideals.  You can do nothing less.

And yet, I ask, what about my rights?, my needs to ensure that all matters related to how I interact with the payments system are managed in an efficient way and ensure that for me, at least, I have a lower cost that those that demand other inefficient means of payment, such as cash. Should people that use high cost payment products such as cash incur higher fees?  That will be an interesting observation!

You know, one of the key issues that we should confront is the economic benefit of managing our society without cash.

I know that there are numerous people out there that love nothing more than to carry coins in their wallets/purses.  I personally don’t get it, but I understand that it happens. Furthermore, there are people that want ‘notes on hand’ to make sure they are quarantined from that awful predicament of being destitute at the point of sale – not being able to pay for goods, in cash, on demand.

But seriously, do we not contemplate the costs on the merchant of carrying the cash to support these efforts?  Have we never thought that demanding cash as a currency is causing the merchant serious costs, and mostly hidden costs?

Let us pause to consider what a merchant has to manage with the range of cash on its premises:

1. Security of cash management
2. Loss and theft from employees at point of sale
3. Reconciliation costs for cash registers, including additional persons to provide a separate point of control for cash counting
4. Personnel management and training of impacted staff

These are but a few of the business overheads that are required to mange cash and protect staff exposed to cash handling.

So the costs are considerable … and the benefits are?

My journey without cash has passed the month of January without any disruptions to my day to day life.  There was one merchant that queried why I used a card for a small $4 purchase, and I simply stated I had no cash.  Other merchants have praised the benefits of contactless as a seamless way of managing the sale process.  Trades people more often than not have electronic payments built into their business models … so no problems there either.  I am looking forward to declining the opportunity to buy fish and chips from our favourite place, as it only takes cash.  One less sale for them … and no doubt some lifestyle benefits for me!