The cashless economy has become increasingly prevalent in developed countries such as the U.S. and Japan. Consumers are incentivized to use debit or credit cards through discounts and freebies, and banks and credit card companies collect information on people’s spending habits.
Some stores in the U.S. have decided to stop accepting cash from customers altogether, which has resulted in a backlash. Millions of people, most of whom live below the poverty line, do not have a bank account and only deal in cash. Advocates have argued that the cashless economy discriminates against poor people and the homeless.
American cities and states have started banning cashless stores on the grounds that they are discriminatory. San Francisco, New York City, Washington, D.C., Philadelphia and New Jersey have recently passed legislation forcing stores to accept all types of legal tender.
Most countries are still cash-dependent and have very low credit card penetration.