FREE ESSAY ON CASHLESS SOCIETY

CASHLESS SOCIETY

Cashless Society
One article that caught my attention recently was one presented in the November 21, 1998
issue of The Economist. The article was about a cashless society and how well alternative
forms of tender were catching on. According to the article, some forms of the smart card
haven't caught on as well as expected. 
Smart cards have information embedded in them, essentially allowing a consumer to
purchase things quickly and conveniently. It was the hope that these cards would supplant
paper and coin money forever. However, that has not been the case.
Smart cards do exits, however. In the article, it is mentioned that smart cards with
chips embedded in them allowed a customer to quickly swipe the card through the reader.
Thirty-two cents is then deducted. Simple and easy, right? Well, it hasn't caught on. One
of the main reasons that smart cards have struggled a bit is that it has competition in
the form of current debit cards. People can purchase anything they desire with these
cards already. Therefore, there wouldn't be any added value of having a debit card. A
survey of 2,400 North Americans by Smart Card Forum gives some interesting results.
According to the survey, more than three-quarters would have liked to have a card that
stored vital medical and car-related information. Less than half wanted a card that they
could use to purchase things with. 
Another problem facing smart cards is compatibility. Current smart cards utilize only on
a small range of readers. For example, a smart card for parking meters in Boston would
not work for ones in New York. And since local governments control those areas of
jurisdiction, it has to take a national effort to make it work. This means that the U.S.
government must implement and lead the way. When this happens, then we will truly see the
fall of paper and coin money.