When will kids stop using cash and plastic?
“Why would I give my kid a physical credit card? He’s just going to lose it. And, besides, he doesn’t even have a wallet. No kid has a wallet.” That is a quote from one of our parent interviews.
Putting aside for a moment the physical complications of kids and plastic, the adoption of digital payments is accelerating whether it is tap-to-pay at the register, peer-to-peer with Venmo and Zelle, or even credit card credentials stored in your browser. Fewer and fewer Americans carry a meaningful amount of cash on them (one in six report having not a dime).
The trend is happening even faster in other parts of the world that are leapfrogging the US in terms of adoption and sophistication. In Sweden, less than 15% of all transactions are made with cash -- down from a 40% less than 10 years ago. And in developing parts of the world, shoppers are scanning barcodes with their phones and paying by text.
In the US, restaurants are experimenting with no cash accepted policies. And, the prototype stores from Amazon do not require the shopper to present any form of payment. Closer to home, the teenage babysitter wants to be paid by Venmo despite the fact that the company’s terms of service require she be at least 18 to sign up.
So, what does this mean for children that are being raised in a cashless society?