Cash

Amazon Go is caving to rising pressure from cities and states banning cashless stores and planning to introduce cash-acceptance to a model whose entire premise was about eliminating the friction of checkout with a seamless, card-based checkout.

As more stores either close down or try to ban the use of cash, they aren't necessarily driving cash users to cards and mobile wallets. Instead, they are driving some to an environment that is, counterintuitively, more cash-friendly than ever: e-commerce.

U.S. lawmakers are not enthusiastic about the cashless trend being driven by the likes of Amazon Go, sweetgreen, and numerous other merchants of all sizes.

As more U.S. e-commerce merchants look to accept cross-border payments, they must contend with payment processes that are less straightforward than they are used to — but which consumers have come to expect.

Sweden will likely push through a proposal to force banks to keep offering cash to customers who require it as the Nordic nation grapples with how to balance the rapid transformation into a cashless society.

Legislation banning shops from refusing to accept cash has moved swiftly this year. But this trend is running head-on against retail models like Amazon Go, which are built from the ground up to operate without cash.

An initiative by Visa and Lloyds doesn't go far enough and is counterintuitive to the card network's move to reduce cash, argues Mark Horwedel, a strategic consultant to CMSPI.

A movement to eliminate cash for routine transactions has been building for years, with sports stadiums often seen as an ideal setting to test whether consumers are willing to ditch cash for a full day out.

China's rapid urbanization is causing a payments technology gap between the city and country, leading the government to issue a plan to bring digital payments in small towns and rural areas, a move that should also boost volume for Ant and Tencent's payments businesses.

Lloyds is paying small merchants to offer cash back, but consumer groups are already casting the move as inadequate to address the decline of branches and ATMs in the U.K.

Whether they process cards, bank accounts, cash, or whatever comes next, digital payment systems must be reliable, flexible and ever-advancing, writes Michael Kaplan, chief revenue officer at PayNearMe.

In the tug-of-war over merchants refusing either cash or cards embroiling local governments in New Jersey, New York City and Philadelphia, the Iowa State Fair is taking the middle ground. Beginning next year, all fair vendors will be required to accept cash, cards and contactless payments through First Data’s Clover devices.

With retailers seeking to discourage cash use and billers increasingly going digital, PayNearMe stands in the middle seeking to further enable the very people who depend on being able to use cash: the underbanked and unbanked.

Battle lines are hardening in the fight against stores that eschew cash, as New York City’s Committee on Consumer Affairs plans to hear arguments Thursday on a proposal to ban cashless stores like Amazon Go.

While consumer spending on Valentine’s Day doesn’t approach that of the larger holidays, certain retailers — such as jewelers and florists — benefit more than others, while restaurants, bars and other dining establishments tend to see significantly more traffic for those couples who want an evening out. Increasingly, it’s also a special day for pets.

The pushback on stores that don’t accept cash seems to be gaining momentum, with Philadelphia the latest municipality to consider a law that would ban cash-free shops.

Visa for years has used its sponsorship of the Super Bowl to promote contactless and mobile payments, but it hasn’t squeezed cash out of the event yet.

For the U.S. to move forward, education will be required to teach users how to utilize new technology to manage their finances, says Katy Gibson, vice president of product applications at Envestnet Yodlee.

Banks, retailers and technology companies have spent years relentlessly working to replace cash with plastic, digital or mobile alternatives. And cash has hit back hard.

Leveraging the trust relationship the bank already enjoys with its customers, based on robust security, engagements can go beyond run-of-the-mill transactions, writes Sherif Samy, senior vice president of North America at Entersekt.