While we’ve looked at some advantages of a cashless society, we should also look at some disadvantages.
Here are some common issues people have:
- Less privacy
- Greater exposure to hacking and cyber crime
- Technological dependency
- Magnifying economic inequality
- Increased financial exclusion
Less Privacy
If I want to buy a present for my wife, I will often pay in cash at the store so she doesn’t go asking “What did you buy at ______ for $ ____. This is not because I am ashamed of what I spent (I’d like to think of myself as a good shopper) but rather my desire to surprise my wife. With a cashless society, it requires an increased form of connectivity. This means that not only would my wife notice my purchases, but other people and organizations might as well.
Stores are already “Spying” on you by using rewards cards, imagine additional parties such as your bank, the government, or credit card processor being able to do the same. How Stores Spy on You – Consumer Reports Credit card companies are already attempting to do this for “less than favorable” products. However, there have been various issues with this from privacy to them making incorrect assumptions. Visa, Mastercard, American Express to track gun store purchases (axios.com) (For example, they couldn’t tell if you purchased a gun safe, or gun lock, vs an actual firearm.)
Exposure to Hacking
People often say that a cashless society will make crime go down since muggings and similar crimes won’t be as profitable. However, s we’ve mentioned before with your data security, the more data online and the more useful, the more likely someone will try to hack your data. With most people reusing passwords, once you access one account, you can continue to access multiple accounts.
However, we’re not just looking at hacking, with the stealing of data. We also must look at the increased the risk of various types of fraud, as transactions occur digitally without physical evidence. Hackers can access digital payment systems and steal money, while identity theft and phishing scams can also occur. Electronic payment methods also make it easier for scammers to create fake accounts and make fraudulent purchases. As cashierless stores take off, more and more personal and payment data will be transmitted through phones and mobile devices and stored in cloud-based software platforms, which means that hackers will have more network access to this data through vulnerable providers and merchants. In a cashless society, you’re more exposed to hackers, and if you are targeted and somebody drains your account, you may not have any alternative ways to spend money. Dangers of a cashless society you need to consider – Digital Mahbub The Pros and Cons of Moving to a Cashless Society (thebalancemoney.com)
So not only do we increase the target of criminals, but we increase the number of places they could access that data, and the amount of information it will hold.
Technology Dependance
A cashless society requires a certain amount of technology dependance. While approximately 85% of people in America have a smart phone, that means that approximately 50 million people don’t have a smart phone. This could be because they might find them confusing, too expensive, or the live in a place where there isn’t great service (such as rural America).
Requiring people to have a smart phone also increases privacy risks, and may hurt their economics if they don’t want to spend the money on them. And what if they had to constantly upgrade to a new version, which is even more expensive? This could even further magnify economic inequality by limiting people from the marketplace without access to certain technologies.
I can tell you from my experience, using a small device is getting more and more difficult as I age and my vision is not what it used to be.
Disadvantages of a Cashless Society was originally found on Access 2 Learn
