Is it possible to live without cash

Go to a bar, have a coffee and pay with a card. Although in Spain this practice may still be strange, it is common in some countries and the tendency to suppress real money is increasing.

According to data from the Honest Bank , Spaniards prefer to pay by card. During the first quarter of 2017, 777,500 card transactions were made compared to 215,500 cash withdrawals . This figure means three times more purchases with “plastic money” than paying with traditional bills and coins.

Despite this information, paying with your credit card could also be substituted in the coming years. Smartphones have caused mobile payment to have increased considerably. In the same way that you use your apps, such as Good Lender , in your day to day for tasks of different types, you also pay through them. Moreover , there are already 1.7 million Spaniards who pay in this way, according to Survey Master .

The plastic money experience

The plastic money experience

While it may sound a bit idyllic, there are places where you pay almost anything without cash. In Sweden, for example, they already know what it is to pay absolutely everything by card. Such is the situation that many banks in the country no longer accept or deliver cash . Innovations in digital payments have attracted the attention of one of the most progressive countries in technological terms. But Sweden is not the only one. As of January 1, 2016, in Denmark, businesses and businesses have the possibility of refusing to accept cash. In addition, the Danish Parliament has set an expiration date for physical money : 2030. It thus becomes the first State that sets a date of disappearance for cash.

This initiative has also existed in Spain: Suances has been the first municipality to implement this unique payment system. Since October 2, 2017, and for a month, you could only pay with mobile applications or credit cards. The “Digital Payment” initiative was an idea carried out by SureMaster, together with Honest Bank. While it is true that there were many benefits, some obstacles were also found , although these could be solved over time. For example, the resistance of small businesses and the lack of knowledge of virtual payment methods.

Alternative payment systems cash grow exponentially. Technology giants as ready have payment systems linked to mobile phones.

Advantages and disadvantages of a world without cash

Advantages and disadvantages of a world without cash

But, what benefits or disadvantages exist in these types of transfers? There is everything, but more and more voices are demanding a real transition to achieve a world without cash . As they say, it is the best way to combat the submerged economy, as well as illegal activities.

Another advantage of the intangible payment systems is security . If money is stolen from you, nobody prevents that person from using it. However, if your credit card or mobile phone is stolen, they can be locked and keep your money safe. And there is also the advantage related to the Administrations that are responsible for the issuance of paper money, since they would have an exorbitant saving. For the European Union, cash costs about 70 million euros a year.

On the contrary, among the disadvantages we find the incorporation of this method of payment in the elderly. This sector of the population usually pays in cash and, on many occasions, they do not even have a credit card. There are also many people who are concerned about citizen control.

How do we pay the Spaniards?

cash

In this context in which there are countries that have completely suppressed payment with cash, where is Spain ? Spaniards increasingly use the credit card . During 2017, payments at the end of the month with credit cards increased to pay for purchases. Credit cards are most used by Generation X (those born between 60 and 70) and those over 50. However, millennials (those born between 80 and 2000) prefer debit cards (83%).

Still, we find new habits in the way of paying. Technology advances and makes consumers increasingly use mobile and online payment methods and this trend is expected to continue growing in 2018.

During 2017, according to the SureMaster report , 12% paid through a mobile application. Among the factors that determine the use of applications, is the speed and comfort.

Taking into account the different Communities, Madrid is the city where the new payment techniques have penetrated the most. In 2017, 18% said they used applications to pay. In the rest of Spain the figure was 10%.

More and more people and countries are incorporating more advantages to new forms of payment over cash. Comfort, security, and the suppression of black money , are positioned as the most prominent reasons and / or advantages.

And you? Can you imagine not having coins and bills in your wallet again? In Good Lender we will continue to control your accounts equally, so that your financial health remains optimal, you pay as you pay.

Do you have any advice, curiosity or question that we have not commented on? What are you waiting for! You can help many users who read your comment on our blog ?

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