We’ve talked a bit about how paper money is likely to be phased out in the coming decades or years, but based on the current times, this timeline could be accelerated – and for one big reason: germs.
Yes, while there’s yet to be published research on whether or not the current coronavirus can live on banknote paper, seeing as how it can live on cardboard for up to 24 hours, and plastic and certain metals for up to 72 hours, there’s a pretty solid case to be made that cash does present a risk of transmitting the virus as well. That’s not even to mention the other germs or chemicals that cash could be carrying from the time it’s printed to its final use.
Combine this with the rise in more secure digital payment methods, and there’s a case to be made. We’ll delve into some of the pros and cons of moving away from paper money in the near-term.
The Good
When it comes to paper-less currency, we’re basically talking about credit/debit cards, and newer technologies like Apple Pay and Google Pay. Here’s a look at the advantages of using these payment methods over cash:
- Credit and debit cards: These are nothing new, but they’re nice in that they can pay for purchases online, be arranged to take care of recurring payments and link with bank accounts. While they’re not immune from fraud, most banks have stepped up their fraud detection efforts and fully reimburse such purchases as long as consumers can prove such.
- Digital payments: Newer digital payment platforms like Google Pay and Apple Pay allow consumers to quickly and easily pay for purchases online. One of the nice things about these forms of payment is that they’re generally much safer, as credit card numbers are securely stored on the platform.
- Venmo/Paypal: These are other methods of payment that many online retailers are increasingly accepting. They’re easy to use, manage, and link right to a credit or debit card, or bank account.
The Bad
Certainly with anything new, there’s a learning curve associated with it – and older populations of consumers may have difficulty assimilating to new payment means or understanding the technology involved in such. That’s one big factor that may cause paper money to stick around for a bit longer.
Another factor is how many in the service industry are dependent upon cash tips or cash payment in exchange for their service. Eliminating cash as a form of payment would likely great impact their earnings potential, at least until digital forms of payment become more widely accepted by businesses throughout the country and more widely used by consumers.
Experts say that cash isn’t close to dying, but if there’s proof that banknotes are helping significantly accelerate the spread of the coronavirus, how we spend could become a safety issue and the survival power of cash could again be brought into question.
