Cash has shifted from being the preferred method of payment since the arrival of the 21st century, due to the advent of technology such as the smartphone, contactless payment methods, and the digital wallet. The adoption of these technologies has been very rapid, and in a few short years, cash will be in the minority of preferred payment methods. By 2025, it is expected that 50% of Americans won’t even be using cash at all in a given week. This is a massive change from 2015, where only 24% of Americans weren’t using cash on a weekly basis. Let’s explore the digitalization of currency further below.
Forms of Digital Payments
There are already many different forms of ways to send and receive money online. Digital wallets, found in apps such as CashApp, Venmo, and PayPal, are one of the most popular methods. It is predicted that by 2025, 53% of all eCommerce transactions will use digital wallets. Credit and debit cards are already a tried and true method of payment, and have been a huge reason why cash is fading into obsolescence. Account to account transactions, such as Zelle, have the ability to deposit money directly into someone’s bank account.
Cryptocurrency is a form of digital currency that has been frequently talked about on the news, and may contribute to the ailing prevalence of cash. Some of the most popular coins include Bitcoin, Ethereum, and Tether USDt. This method of payment is popular for its ability to support autonomous, irreversible, and unmodifiable payments from one account to another. Currently, there are already 3.3 million US adults who pay with crypto currency and this number is expected to grow. Worldwide, there has been an estimated $9.3 billion worth of transactions that have been completed with cryptocurrency. With the growing influence of cryptocurrency and other cashless forms of payment, cashless transaction volumes are expected to double by 2030.