According to Yankelovich survey released by Visa USA, an overwhelming majority of both Baby Boomers (79 percent) and Echo Boomers (74 percent) believe that U.S. society will one day operate without cash and checks and will conduct all payment transactions electronically.
In a statement, Visa said innovations in technologies and products are easing the transition to a cashless society. Among the factors, according to Visa, underlying the shift away from cash and checks:
- Debit Cards: More than three-quarters of U.S. adults have a debit card, according to The Nilson Report, a payment systems analyst publication, and the Federal Reserve Bank reports that debit cards are the fastest-growing payments type at retailers nationwide;
- Government Migration: More than 30 states, including California and Texas, are switching from cash to Visa reloadable prepaid cards to disburse child care, unemployment, and other social benefits;
- Contactless and Mobile Payments: Contactless transaction methods - ones that don't require consumers to swipe the card or hand it to a cashier - have rolled out across a full range of products, including credit, debit and prepaid, as well as mobile phones and other handheld devices.
Prior to the introduction of the Visa Check Card in 1995, less than two percent of Americans used a debit card. In 2006, Visa debit products generated more than $600 billion in consumer spending.
To tout the benefits of plastic, Visa is airing four commercials illustrating how using cash and checks "disrupt the harmony of life" versus the convenience and efficiency of credit/debit cards.
"Consumers' payment preferences have evolved," said Kevin Burke, head of marketing for Visa USA. "As consumers look for payment options that enhance their everyday life, we'll continue to use a variety of channels and techniques to reinforce the benefits of Visa payment options that empower cardholders."
Discussion Questions: Are retailers prepared for the arrival of a cashless society? What actions should they be taking around registers, store credit cards, marketing, loss prevention/fraud, or card processing fees?