Question

In 2017 Sweetgreen, a U.S. chain of salad restaurants chose to require customers to pay ahead or with a mobile wallet payment app. By not taking cash, Sweetgreen hoped to speed up service, and eliminate the chance of robberies. Similarly, many convenience stores and gas stations refuse to take large-denomination bills ($50 or more). Some whole countries (like Sweden) are almost cashless now; do you think the U.S. will follow suit? Do you carry cash for your everyday transactions? Why or why not? How do you see transactions being made in the near future as more companies are transitioning to alternative forms of payment?

Answer 1

I carry some cash. The sole reason for carrying cash is that it is widely accepted. Money is based on the concept of general acceptance. A paper is currency only because people will accept it to transact. Even though digital payments are expanding, cash is still important as it is widely accepted. Many vendors, particularly small sellers like the street hotdog seller don't accept digital payments as it requires certain infrastructure like Pos machines and it also raises costs as certain fees have to be paid to banks. So cash is important.

Although this is changing at a rapid pace as more digital payments systems are mushrooming thus increasing competition and lowering cost of transaction. This will enable even small vendor to shift to digital payments.