Coins and banknotes have nearly disappeared from everyday life in China, according to Le Monde. From supermarkets and cafes to public transportation, most payments are now made exclusively through mobile apps such as WeChat Pay and Alipay.
The two platforms have become essential tools for daily living in the world’s second-largest economy, the outlet said on Saturday. Their logos are displayed at virtually every checkout, and many businesses no longer use traditional cash registers. Instead, vendors scan a QR code on the customer’s smartphone to complete the sale.
Only the oldest shoppers still use coins and notes, the outlet said, noting that across the rest of Chinese society, cash has virtually vanished.
The following quote attributed to Benjamin Franklin would also apply if "safety" were replaced with "convenience": "Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety."
It does suck though, because if you do use cash you are getting ripped off. Credit card companies charge fees to process payments, those fees are passed onto the customer, and very very rarely will stores bother putting separate prices for cash payments. If I use a credit card, I get charged the same price as those with cash, but I also get cash back, essentially the credit card companies will split the fees with you. (Which some people think this is some kind of deal they are getting haha. It's like you could by something for $10 but this nice guy comes by and says how about you buy it for $12 then I'll split the extra $2 with you, so you win!)
If stores were fair, they would give you a different price if you use cash, and this is what I think the main reason is for cash disappearing
For sure that is part of it, but if suddenly everything you buy is 5% cheaper if you use cash, then a lot more people would use cash. You would for sure still have people that would want it for convenience and don't mind paying more for it. The fact that almost all retailers practice "price normalization" and make no distinction for cash vs credit I think is the main reason for cash disappearing.
I use a credit card for everything, simply because I'm getting ripped off when I don't, since I get 3% back. However, I will shop at places like WinCo and use cash there, since they don't accept credit cards and everything is slightly cheaper there. If there was no price normalization, I think I would probably still use my credit card for gas, just for the convenience like you said, but that's about it.
The other aspect is a couple of cards these days also include extended warranty and/or some sort of insurance. So if there's a problem with the product and the store or manufacturer refuses to help you, the credit card company can get your money back quickly.
You do have some valid points - for people who pay cash vs those who use cards AND pay off those credit cards every month.
However, for those (far too many) people who use cards but don't pay off their balances every month or within a couple/few months, the X% cash back benefit can quickly be undone/negated by the interest that accrues on the debt. For those people, perhaps using cash might be a better choice because they wouldn't incur cash-back-undoing interest and might save money because they not even make the purchase(s) due to lack of cash.
I see a couple of small business in my area that do just that: dry cleaner, burrito place. Few years ago we went on vacation to a small dude ranch. They told us ahead of time that they would give us a break if we paid by check because they got tired of paying Visa five figures for "convenience ". I gladly brought my checkbook along. But the big corporate places? No.
Coins and banknotes have nearly disappeared from everyday life in China, according to Le Monde. From supermarkets and cafes to public transportation, most payments are now made exclusively through mobile apps such as WeChat Pay and Alipay.
The two platforms have become essential tools for daily living in the world’s second-largest economy, the outlet said on Saturday. Their logos are displayed at virtually every checkout, and many businesses no longer use traditional cash registers. Instead, vendors scan a QR code on the customer’s smartphone to complete the sale.
Only the oldest shoppers still use coins and notes, the outlet said, noting that across the rest of Chinese society, cash has virtually vanished.
Don't they see the danger?
The following quote attributed to Benjamin Franklin would also apply if "safety" were replaced with "convenience": "Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety."
What danger? Fiat offers no protection over digital currency. Both can be created in thin air and both are tied to nothing of value.
As if the people have a choice. This is CBDC forced upon the populace.
It does suck though, because if you do use cash you are getting ripped off. Credit card companies charge fees to process payments, those fees are passed onto the customer, and very very rarely will stores bother putting separate prices for cash payments. If I use a credit card, I get charged the same price as those with cash, but I also get cash back, essentially the credit card companies will split the fees with you. (Which some people think this is some kind of deal they are getting haha. It's like you could by something for $10 but this nice guy comes by and says how about you buy it for $12 then I'll split the extra $2 with you, so you win!)
If stores were fair, they would give you a different price if you use cash, and this is what I think the main reason is for cash disappearing
That may be some of it, but "convenience" is also a big motivator for many people.
For sure that is part of it, but if suddenly everything you buy is 5% cheaper if you use cash, then a lot more people would use cash. You would for sure still have people that would want it for convenience and don't mind paying more for it. The fact that almost all retailers practice "price normalization" and make no distinction for cash vs credit I think is the main reason for cash disappearing. I use a credit card for everything, simply because I'm getting ripped off when I don't, since I get 3% back. However, I will shop at places like WinCo and use cash there, since they don't accept credit cards and everything is slightly cheaper there. If there was no price normalization, I think I would probably still use my credit card for gas, just for the convenience like you said, but that's about it.
The other aspect is a couple of cards these days also include extended warranty and/or some sort of insurance. So if there's a problem with the product and the store or manufacturer refuses to help you, the credit card company can get your money back quickly.
If you paid in cash you're SOL
You do have some valid points - for people who pay cash vs those who use cards AND pay off those credit cards every month.
However, for those (far too many) people who use cards but don't pay off their balances every month or within a couple/few months, the X% cash back benefit can quickly be undone/negated by the interest that accrues on the debt. For those people, perhaps using cash might be a better choice because they wouldn't incur cash-back-undoing interest and might save money because they not even make the purchase(s) due to lack of cash.
I see a couple of small business in my area that do just that: dry cleaner, burrito place. Few years ago we went on vacation to a small dude ranch. They told us ahead of time that they would give us a break if we paid by check because they got tired of paying Visa five figures for "convenience ". I gladly brought my checkbook along. But the big corporate places? No.
Archive,
https://archive.ph/QksVT
Kill a few apps, kill China.
A new warfare weapon emerges.
We can destroy there whole commercial sector in a cyber-attack
And the noose tightens.