Cash Is (Still) King
Banks, credit card companies, and financial analysts love to tout what a globally cashless society we’ve become. They've convinced us that every store in the world uses ApplePay or hi-tech biometric payments and that cash is dead and buried.
But the facts say otherwise.
Fintech leaders often neglect to consider the nearly 2 billion unbanked people in the world. For those unfamiliar with the term, ‘unbanked’ refers to people who aren't part of any Financial Services. Meaning, they don't have traditional bank accounts.
You know what they do have? Cash and smartphones.
According to the US Federal Reserve, there are 16 million unbanked people in the US, and 70% of them use cash as their method of payment. Outside the US, the numbers are even higher.
Fintech startups have taken notice. As a result, mobile-only banking has skyrocketed, especially among millennials. The need to have a bank account at a physical branch and go there in person for certain transactions – well, that’s over like a bad haircut.
In regions like Africa, Latin America, and yes, even in Europe (Greece, Germany, and Vienna, to name a few), cash is still king.
The world may be moving towards a completely cashless existence, but the Greenback and its worldwide counterparts will still be here for a long time to come.