Cash has been part of people’s daily lives, from buying foods, groceries, and even bus tickets. What will happen if one day you wake up and cash has gone?
Innovation, technology has changed the society, from economics and even decision making. One of the huge change it bring was, introducing another mode of living.
Speaking of innovation, Sweden is moving away from cash in favor of cards and mobile payment applications.
According to a recent study, the country is heading up to leave cash behind completely by 2023.
However, business retailers expect to still accept cash for a couple more years after the implementation.
For over the years, more and more people are using cards or mobile pay apps much more frequently than cash.
The trend of purchasing habit is not domestic, it also happening in different side of the world.
In China, for example, cash is quickly on its way out, with mobile payments doubling in the last year.
Sweden has also been forgoing cash an at increasing rate over the last several years, and experts predict that it’s only a short matter of time before the country is entirely cashless.
The trend comes as the country is leading to more and completely digital in just a few years.
If you will ask experts like researchers Niklas Arvidsson of KTH and Jonas Hedman of Copenhagen School of Economics, the country is going to be cashless in the “near future”.
Arvidssson and Hedman estimate that cash will no longer be used or accepted by Swedish retailers by 2023, at the earliest.
Polling various Swedish retailers revealed that about half expect to stop accepting cash by 2025.
Currently, 97 percent of all retailers accept cash payments, but only 18 percent of all transactions actually involve cash.
Also, interestingly, mobile payments are performing rather poorly. Credit and Debit cards are the primary way people pay, with mobile pay apps accounting for only 0.4 percent.
Meanwhile, the report is unclear why only a small amount of people seem to use them; it could be a matter of convenience, trust, or simply knowing how.
According to Arvidsson, people are generally comfortable with paying digitally in some way, even if they never see the money leave their hands.
“We are a small country that has had a very stable democracy for a long time,” Arvidsson said.
“For us, it’s no problem that the money is only visible on an internet site – we trust it,” he added.
Consumers and retailers as well are largely facilitating the change, though banks have also done their part to push people away from cash, as they want to reduce the risk of robbery.