Cash could make a comeback in 2020 given that certain people need cash because of their location, situation, or job. There are a few tips listed below that explain why cash might become more popular in 2020. However, you might be in a position where you do not need it very much. Put yourself in other people’s shoes when learning about wire transfers, liquid cash, and virtual accounts.
Electronic Transfers Are Replacing Liquid Cash
Electronic transfers are very popular because it seems like everyone has a virtual payment account. Several companies provide virtual payment options to customers, and those companies allow customers to use debit cards to make payments. Therefore, you do not necessarily need liquid cash. Plus, credit cards are still very popular, easy to use, and accepted around the world.
What Are The Pros And Cons Of This Defining Change?
Now that you can make all your payments virtually, you do not need to carry cash with you. However, cash is still required in certain parts of the world. You need cash when you go to local farmer’s markets, or you might need cash for your taxi driver. While you can buy anything you want online or inside a normal retail store with a virtual payment account, you will be turned away when the vendor only accepts cash.
If you follow that line of thinking, you will need cash every time you go on vacation. Anyone who has traveled abroad knows that cash is king in local markets, in taxis, restaurants, and shops. Also, some travelers need to pay for their hotel with cash. You must change your thinking and spending habits when you know you are traveling to a cash-based economy.
Cash Is Still Needed Around The World
Aside from spending cash in exotic vacation destinations, cash is needed to manage businesses. Your local shop or office needs petty cash to use during the day. You need cash for the register where customers check out. Plus, you need cash that employees can use to make specific purchases for the office.
Also, cash bonuses are popular among employers because cash cannot be taxed. Cash is a popular tip in restaurants, and it is just as popular with cab drivers. You need cash when you tip the valet at a nice restaurant, and you need cash for the delivery drivers that visit your home or office.
Companies that acquire other businesses often pay cash for these massive transactions. Plus, you must pay cash when you purchase a stake in a local business. Cash is easy to verify, easy to deposit, and lets other business owners/managers know that you are serious.
What Happens When Cash Makes A Comeback?
Cash will change the way that people spend money when it makes a comeback. If credit card and debit card fees rise, local vendors may only accept cash. Cash will speed up transactions, but it may require a different form of payment when you are traveling. For example, you can send money to a bank account to pay for a vacation rental, tour, or trip package.
Plus, cash will become a popular way to send payments to businesses and business owners. If you run a company halfway across the world, that office could send your salary in cash. You could send cash to that office to help them operate, and you might send money to the cleaners who clean the office every day. Cash can be picked up in a transfer office window, and the cash can be spent instantly.
Cash could make a comeback in 2020 if electronic and virtual payment options become more expensive to use. Travelers have been using cash to make their trips simpler. Servers and cab drivers are accustomed to receiving cash tips, and delivery drivers need cash tips. The world of finance will see more cash transfers to bank accounts, and transfer companies will send cash to more location around the world. However, some parts of the business community will become a bit more inconvenient. Local businesses may stop allowing credit card or debit card purchases. Cash may be required to close business deals, and bank account transfers may change to cash transfers.