The challenges of a cash-free world

That’s not to say it would be a smooth transition. There are some big challenges to consider, including:

Habits

If you’ve ever tried to break a bad habit you’re used to doing multiple times per day (such as drinking coffee or checking email too often) you’ll know it’s not easy. Habits quickly become an ingrained part of our lives that we barely notice — until we try to break them. Then we discover that changing even the simplest habit is a slow, frustrating process.

We all have habits surrounding the way we use money. If we’re used to using it in a particular way, it can be tough to adjust that. This is especially true for adopting a new payment system as we have to change our behaviour AND be able to trust it.

One argument against going cash-free is that it would be challenging for senior people who may have used cash all their lives. They’re also less likely to own a smartphone or have internet access, both of which are requirements for most digital payment systems. Likewise, countries with a strong cultural preference for cash (such as Italy) may get left behind.

We need to make sure no one gets left behind by changes like this. Everyone deserves access to services that meet their needs and practical guidance. So far, the transition away from cash has been slow enough to let us adapt and innovative new products are helping to fill the gaps. For example, a few charities have switched donation tins for contactless card payments as fewer people carry cash to give. In Sweden, churches and street vendors accept mobile payments.