August 22, 2019

The Move Toward Becoming A Cashless Society

CBSlocal.com reports (June 24, 2013) that “It seems Texans, like most citizens around the world, are moving toward becoming a cashless society.”

In its 2013 Consumer Insights Survey, SWACHA – The Electronic Payments Resource® – announced “Direct deposit users are likely to save more” than their non-EDP counterparts. According to the survey, savings rates are up more than 35 percent from 2011. Forty-two percent of those surveyed reported saving more than 25 percent of their paychecks.

“We know the future of banking is synonymous with mobile banking, and we must learn to grow and change as technology does, which is why we felt it important this year to start monitoring the use of tablet devices for electronic payments,” said Dennis Simmons, AAP president and CEO of SWACHA.

“Thirty-three percent of those surveyed now use mobile banking applications on a cell phone or a tablet,” the survey reports. “Additionally, 20 percent of those surveyed use a mobile banking application on their cell phone daily, and 45 percent of the surveyed use one at least once a week.”

“Banking experts say the use of cash will lessen, as the feeling of security, for things like direct deposit, becomes the norm with mobile banking,” CBSlocal reports. ”

David Hoffman, partner with PwC Financial Services, says consumers are also increasingly liking the speed and convenience of so-called “contactless payment.” Hoffman says consumers spent over $2 Trillion on small money purchases of under $25 in 2011.  He predicts that 10% of such transactions will go mobile in the next two to three years, while the percentage of cash purchases will decline.