Our Cashless World

Scott Friedman’s blog has the story of Southwest Airlines move to go “cashless in the cabin” for food/drink sales.

Turns out Alaska Airlines has also gone “cashless” in the cabin this summer as well.

I’m hoping this is just the start of a bigger trend — a cashless world. Read more after the break.

I’ve been nearly cashless for years, carrying a wallet with credit/debit cards and ID only — and it’s saved me money.

Instead of having “loose change” that becomes a permanent fixture in the jar above the fridge, my debit card allows just the purchase price — with no change — to be taken out of my account, leaving the “loose change” in my account. That doesn’t sound too helpful, but think about this example:

I buy a soda for $1.20 and pay with two dollar bills — I’ve got $0.80 left over that I just throw in the jar. If I do this twice, I’ve spent $4.00 for soda, with $1.60 in change left in my jar. Using the debit, I’ve only spent $2.40 for those two sodas — and I could buy another from the same change that would have hit the jar.

I’m not the only one with a loose change jar, or box, or dresser drawer — something that takes money out of circulation (at least until the CoinStar gets it) for an indefinite amount of time.

Imagining a cashless world brings that loose change back into circulation quicker — which could save everyone money in the long run.

But what about convenience? Visa has run ads before showing the “quicker than cash” philosophy, and in reality, it’s pretty accurate. My purchases using a debit or credit card are faster than the dig-for-cash, hand-to-clerk, receive-your-change methodology. And I’m rarely at an ATM (what with the fees, and all) since I can get cashback at convenience stores, supermarkets, and other locations for anything that DEMANDS cash (I’m looking at you, vending machines).

Yet, as we move more business online, use more automated purchasing kiosks (at gas stations, for DVD rentals, etc.), and more stores allow credit/debit purchases, the list of “cash-only” businesses shrink, and the electronic alternative seems more viable, more economical, and more convenient.

So why aren’t we all pulling a Southwest and going “cashless?” If you think you’ve got an idea, tell me in the comments below. I’d love to have this discussion.