We might not be in a cashless society yet, but if recent data from Javelin Strategy & Research is any indication, cash is becoming less popular among consumers.
According to the research, cash will lose nearly $100 billion in point-of-sale volume by 2019. Furthermore, cash dropped by 10 percent of volume of transactions, from 2012 to 2013, for a total of $86 billion. That trend is predicted to continue in a more drastic fashion over the next six years, Javelin said.
Javelin Senior Analyst Nick Holland said in the company statement that small businesses have been unable to accept electronic payments due to high processing costs or an inability to support a traditional terminal for several years.
“But the necessity of cash and checks has been eroded by the popularity of mobile card readers — like those offered by Square, PayPal, and Intuit — which easily and inexpensively enable mobile devices to accept card payments,” Holland said.
Even with those numbers, Javelin added that 65 percent of consumers used cash within the past seven days of when the research was compiled. However, debit and credit do dominate overall POS spending.
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