The Repercussions of a Complete Cashless Society

A complete cashless society is becoming near possible with Sweden. There are plenty of advantages to the system of digital payments, but the repercussions of a complete digital economy seem to be hard-hitting.

The Repercussions of a Complete Cashless Society
The Repercussions of a Complete Cashless Society

Sweden is wiping out cash quite quickly, with places around Stockholm only accepting digital payments. Paying for a coffee is done by either a card or your Smartphone, in Sweden’s technological city called Stockholm. Even the public buses don’t accept coins or cash; it does seem like a difficult habit to get used to.

Research has shown that only a quarter of the people in Sweden use cash in a week, with a majority opting for mobile payments, card transactions, and online transfers. Cash transactions according to statistics in Sweden have fallen from 40% in 2010 to 15% today.

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The challenge with a cashless system is faced by the elder generations. They fear safety when using cards with sentiments of fear for the future digital payment. Majilis Jonsson, 73 commented on this issue-

“Sometimes in places, I don’t know, I don’t feel secure to use my card.”

The elderly have to also pay extra charges to companies, and friends who use technology to make payments. This solution of digital technology is ensuring that only the new younger generations survive. Hence a mixture of a cash and cashless system is more useful.

The teaching of the digital payment system should be done. SEB, one of Sweden’s big banks have offered a course on teaching the digital model to the older generations and people who find cash easier. This transition will take time, but it is ensured that it is taught in the right manner.

Riksbank of Sweden understands these implications, and commented about the speed it should be slowly changed-

“ a rate that does not create problems for certain social groups or exclude anyone from the payment market”.

Should Sweden suddenly go into a crisis, the digital payments will be a major hurdle to recover and so cash is still required. Security and trust need to be heightened to a very high level should the whole country be changed into cashless.

With data being hacked and outrageous news such as the Cambridge Analytica scandal, people are becoming more concerned about a fully cashless society.

A survey by Swedish polling firm Sifo showed that 7 out of 10 Swedish people preferred to pay in cash.