Cashless Society Coming Despite Reprieve for Coins
May 7, 2019
The Government announced last week that coins will not be scrapped after a treasury review. Despite the Chancellor of the Exchequer describing them as ‘obsolete’ as little as a year ago, coins are here to stay, for now. Regardless, the transition to a cashless society is still on the horizon.
Losing the 1p and 2p coins?
It was 1p and 2p coins that were in danger of being eliminated from circulation. More and more people have moved towards contactless and digital payments in a growing number of scenarios. Thus, with more cashless payments, the role 1p and 2ps play has diminished in society.
A consultation by the treasury for example discovered how little the coins are used. It estimates that six-in-10 of the coins are used once in transactions and then never again. They are either discarded or put in jars. Furthermore, it found that one-in-12 of the coins ended up in bins.
Their use in transactions is greatly diminished, and so has their actual value. Inflation means that the 1p coin is actually worth less in value than the halfpenny was when it was abolished in the 1980’s.
The decreasing value of 1p means that concerns about prices rising and lowering to the nearest 5p are somewhat unneeded. The effect on the cost of living of such price tweaks would be minimal for people across the UK.
Preparing for cashless society
While it looks like the scrapping of coins is not set to happen yet in the UK, it is likely only a matter of time until we join countries like Canada, Australia, Brazil and Sweden in making the move.
The drive to drop them will only grow more as the use of digital and cashless payment methods continue to expand. A cashless society is coming, and businesses, organisations and everyone should make plans according.
Here at BioStore, we can help organisations transform their place of work into cashless environments. Payments for meals are moved to an online system that can be accessed on computers, laptops, smartphones and tablets. Employees keep this online account topped-up with funds to pay for meals using biometrics or smartcard.
As such, the system allows your employees to pay for lunch, drinks and snack at the office canteen with no need for cash. Instead they use an authentication like a biometric, smartcard of fingerprint to get their meal. It would be the same authentication they use to get into the office and much more.
Our society is moving towards cashless payments, don’t let your business fall behind, and become the one place your employees still need to remember to bring cash. Overtime, it will become increasingly more inconvenient to do so.