Continuing on the topic of cash… this was on today’s Robinhood Snacks newsletter & seems the pandemic is definitely moving us toward an even more cashless society. Also mirrors some of the things we’ve been talking about above…
"Haven’t touched a $20 since 2019… Turns out that contactless payment options thrive during a pandemic. Last week, Venmo-owner Paypal reported its strongest quarterly earnings ever . Profit surged 86% on lockdowns and germ-avoidance.
- 70% of people “fear for their health” at the cash register, according to Paypal. That helped it add more users in 3 months than in all of 2016.
- "The death of cash" is accelerating thanks to the rise of digital payments. Credit cards hurt cash, but QR codes and digital transfers could kill it.
The “Death of Cash” has a dark side… There are no truly cashless societies (yet), but some are close — Only 2% of Sweden’s transactions are cash and QR code payments are prevalent in China through apps like WeChat Pay. While a more cashless America could lower crime, it could also infringe on privacy and hurt lower-income segments. Going cashless increases the digital divide when 6% of American adults have no bank account and 16% are underbanked."