“No cash payments accepted”: for the majority of middle class citizens, the prevalence of cashless compensation methods poses no threat. In seconds they will have their debit/credit card, Venmo or Apple Pay at the ready to purchase their item. Accordingly, 40% of Americans claimed to have used no paper money in all of 2022.
However, for historically marginalized groups, the elderly community, homeless and undocumented immigrants the seemingly convenient exchange poses an economic barrier. Currently the trending idea of going “cashless” has inspired reform for digital transactions, yet, before it becomes more prevalent, the government must address the adversity such payment options afflicts upon a myriad of social groups.
At 67.5%, the average US national financial literacy score is approximately a D overall. Therefore, few Americans fully understand the processes of accrued interest, how to invest, or even the processes of achieving a strong credit score. As American businesses trek onward in the transition to digital payments, few of their customers understand the procedures of opening a credit card or staying punctual with payments to avoid credit card debt.
Language barriers, citizenship status and residence (or lack thereof) likewise account for the disproportionate amount of undocumented immigrants, homeless, and historically marginalized groups denied from participating in such transactions. While the Constitution does not explicitly state the inability for undocumented immigrants from using a credit card or opening a bank account, many banks deny groups on the grounds of lacking a social security number. Others require a proof of residency to open a bank account or credit card. Thus, private banks often deny homeless individuals from opening an account with their businesses. Unnecessarily exclusive and divisive, such policies endanger the economic mobility of potential customers while stifling the circulation of money in the economy and invoking greater hardship damaging to the resources available to social groups.
While the use on digital payments platforms are not inherently bad, the exclusivity of many vendors within the sphere offers few resources to groups who already lack many resources. Punishing the elderly, historically marginalized, undocumented immigrants and homeless, the United States must implement new legislation to steady the transition to digital payments to prevent systemic consequences and suffering.