Erin Grant
Staff Writer
In such a digital world, monetary transactions are leaning into the digital realm. Digital wallets such as Apple Pay, Google Wallet and Venmo are becoming more popular. As digital wallets and electronic payment systems become increasingly integrated into everyday life, questions about the future of cash and traditional banking are on everyone’s minds.
For many, electronic payments systems provide undeniable convenience, a perspective shared by Accounting Professor Patrick Gramling. He explained that the simplicity and convenience of paying with your phone is actively changing consumer habits.
“You are making it easier to conduct business … I think in a weird way that tapping the phone makes it easier now to spend money,” Gramling said.
In many ways, digital wallets are a positive innovation that promotes convenience in the consumers daily life. Consumers can now conduct business, shop, and pay bills without the need for physical cash or checks. For students balancing tuition, groceries, and extracurricular activities. Cashless payments from the consumer eliminates the need to handle physical cash which lowers the risk of traditional fraud. Gramling also noted that cashless payments make it harder for criminals to steal as well because identities and bank accounts aren’t directly tied to digital wallets.
“When I pay with my phone, I’m assigned a one time token that corresponds with my account … the money goes from financial institution to financial institution,” Gramling said.
While the benefits seem to be innumerable, there are drawbacks to moving toward digital payment options. One of the most significant risks is hacking by high-level criminals. While digital transactions may reduce the threat of cash getting lost, digital payments “open up different kinds of fraud … bad actors can steal money electronically,” Gramling said.
Another potential issue is privacy. Unlike with cash transactions, digital payments are recorded every time, creating a paper trail that third parties could access. For businesses deciding whether to incorporate digital wallets into their payment structure, Gramling stressed the importance of understanding the associated cost. “Digital payments come with a charge or fee to use,” Gramling said.
While the vast percent of the working population may not yet be comfortable with a shift to a fully cashless society, younger generations are already heavily implementing the technology in most transactions.
With constantly evolving technologies, there’s no way to completely predict the future of transactions in our society. However, the rise of digital wallets suggests that there may be a time when all transactions are cashless. No matter what the future of American transactions looks like, “balancing these advancements with privacy protections and security measures will be key.”
