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But there have actually been efforts by card companies to adapt, like the introduction of chip technology, stated Lapstra. Chip-enabled cards have actually increased protection from scams, making them more appealing to consumers. The exact same Atlanta Fed study discovered that debit and credit cards accounted for 55% of customer payments in a common month in 2017.

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4% of all payments. 12% of consumers said they didn't use money at all. The Federal Reserve Bank of San Francisco stated money was utilized in only 32% of retail transactions in 2015."Money is progressively being used generally for small payments," stated Kenneth Rogoff, teacher of economics at Harvard University and former chief economist of the International Monetary Fund.

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Zelle, for example, enables quick cash exchanges from one bank account to another, using just an e-mail address or contact number, stated Meghan Fintland, spokesperson for Early Caution Providers, the network operator behind Zelle. Apple Pay and Google Pay, are 2 of the biggest mobile payment apps on the market for retail getting.

This might be because credit cards frequently provide rewards to their users, including cash back and take a trip miles. Apps like Apple Pay and Google Pay do not. "There's not an engaging factor to utilize your phone over what remains in your wallet. The value prop isn't there," stated Lapstra. "The only method it would change is if they had a loyalty plan."He gave the example of Starbucks' mobile app.

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Those points can eventually be redeemed for giveaways and discount rates. And it appears to be successful Starbucks states it now has more than 16 million active users. Should you stop using cash?"There are no negatives to moving away from money," Lapstra stated. He stated the benefits of going cash-free apply to nearly everyone.

For merchants, it will indicate a more structured payment procedure. And for the government, it might imply less illicit activity driven by money. Additional Info of cash can make it much easier to lose access to, said Lapstra. If $20 is taken from your wallet, you have little recourse in getting it back.