「エレオノール」Is a 100% cashless society possible?

This week, I am in charge of writing a new insight, about a topic I have been thinking a lot these days.

We all know that Japan is a cash-based society, and I understood it right away the first day I emigrated here. Even though it has moved on since the current situation, with more payment means allowed in different shops, paying by cash is definitely a thing here (especially with the elderly part of the population).

However, many other societies integrated cashless payments pretty much everywhere, way before the current pandemia. 

Minimalist way

When I was able to get a credit card in France, it was my only payment mean. Because it is safer and more convenient to pay with, and carrying to much cash might be dangerous (thieves, lost, etc.), and because I tend to be minimalist. 

I also dislike having a big wallet, and too much things in my pocket. Isn't it more pleasant to lighten your pockets ?

I proceeded to the same logic in Japan. A few payment apps on my phone, credit card in the card holder, we now all have it.

It is definitely a must for me. Why people still pay by cash? With now all this NFC technology, barcode app, bank functionalities, I tried to figure out why do not go 100% cashless.

Pros and cons

As everyone already knows it, cashless payments are very interesting to make for many reasons :

- Less money crimes - such as stealing - or drug dealing. Indeed, illicit transactions are made with cash, in order to not being tracked.

- Faster, no need to count and check if you have been given the right change.

- More hygenic, especially during COVID era. 

- International payments available, no need to withdraw cash with extra fees in another country.

But it also have disadvantages too.

- No private life, banks and institution know everything you do.

- Excessive expenses, difficult to realize how much you spent until you check your balance account.

- Scams, hacking and technology-related problems !

These problems need to be considered too, if we surely get rid of cash.

Can we continue to live with the possibility of having choice ? What should we do about it ? Let's take a look at Sweden, actually one the most advanced nations on Earth. 

Sweden, becoming the First Cashless Society in the World

Nordic countries are really ahead of their time. Sweden is the only country I know that a regulation, enabling shops to make clients pay electronically. That sounds crazy, isn't it?

By March 2023, cash will no longer be accepted in different shops. Every payment has to be made by credit card, or via mobile payment app. 

https://www.npr.org/2019/02/11/691334123/swedens-cashless-experiment-is-it-too-much-too-fast

80% of the Swedish population use card to pay, and only 6% of payments are currently made by cash (source : Swedish Central Bank). Of course, smartphone payments are increasing , because even now, it is difficult to find shops or retail stores where cash is accepted. And this is now also applying to a major part of Northern Europe : Iceland, Finland, Norway and Denmark.

Swedes use Swish, a mobile payment app that allows to share payments with your friends, pay everywhere and manage your electronic money easily (like PayPay).

Should we consider Sweden as a society model ? Banks and government push the population to be cashless, which is a struggle for some part of the population.

Elders, disabled persons, and refugees have troubles using digital transactions : difficulties to understand, not suitable for the lifestyle, or services that are not made for blind or visually impaired people.

Also, Swedish may trust their financial institutions, but what about data usage ? Every transaction is transparent, and these data can be easily abused by big corporations.

Conclusion

To be truly honest, I cannot say if a 100% cashless society should be the standard everywhere. Having the choice might be the easiest and less risky answer I can give. 

However, instead of focusing on "cash or not cash", it would be better to think about alternatives of banks/financial institutions that are often a burden for people. Online banks and cryptocurrency are already here for that, and attract more users.

Should we talk about it in the next article ? ;)