Payments Are Going Digital, but Many Seniors Still Rely on Cash
The Shift Towards Cashless Transactions #
Some establishments in the United States are increasingly favoring cashless transactions, impacting consumers in various ways. Devil Dawgs eateries in Chicago, Hill Farmstead Brewery’s taproom in Vermont, and the BeachLife Festival in California are among those that no longer accept cash. The National Park Service’s move towards cashless payments has also drawn criticism, leading to legal action earlier this year.
In Oakland, California, local cafes and other businesses have adopted card-only payments. As a result, some individuals now routinely carry credit cards for purchases like coffee and croissants. While convenient, this trend is viewed as problematic in public policy terms by some consumers.
Economists and authors warn about the spread of cashless practices globally. Initially spurred by post-Covid contagion concerns and aimed at reducing robberies, the shift to cashless systems promises certain advantages but also presents drawbacks, particularly to marginalized groups such as low-income individuals, the elderly, and those without access to banking.
Natural disasters illustrate another vulnerability of cashless systems, relying on uninterrupted electricity and secure networks. Without these, such systems are rendered ineffective, highlighting their fragility. Digital transactions, though convenient, often lead to increased consumer spending due to the detachment from the immediate “pain of paying.”
The rise of such payment methods poses privacy concerns, with digital transactions attracting scrutiny from various entities. This contrasts starkly with cash transactions, where a simple exchange leaves no trace. Older adults, less likely to possess or adeptly use smartphones, might particularly struggle with these evolving economic practices.
The preference for digital transactions has not yet eclipsed the desire of many to retain cash as a payment option, leading to legislative efforts in several states. Laws requiring businesses to accept cash are being considered or have been passed in states such as Massachusetts and New Jersey, with similar moves in certain cities.
On a federal level, the Payment Choice Act is being proposed. The act aims to ensure cash remains an option, defending the interests of those reliant on traditional currency. Despite potential resistance from major financial institutions, advocates are optimistic about advancing this legislation.
Some older adults remain proficient with technology but still prefer retaining cash options for small purchases. The ongoing debate reflects a generational divide, with individuals continuing to advocate for flexibility and choice in payment methods.