Do Contactless Payments Impact Vulnerable Consumers?

Many brick-and-mortar merchants have implemented tap-to-pay systems during the pandemic. Customers and employees, fearing the spread of the coronavirus, are wary of handling cash and coins.

Starbucks, Chick-fil-A, and Lululemon have recently banned the receipt of cash. Many other businesses are refusing to accept cash or are pressuring customers to pay by tapping credit cards or smartphones. This shift away from cash is extraordinary. It wasn’t too long ago that merchants complained about the high costs of accepting credit cards.

There are other reasons, beyond Covid-19, why some merchants are eliminating cash receipts. Accepting cash, it turns out, can be more costly than paying interchange and other credit card fees.

But refusing cash payments has societal implications as it assumes all consumers have access to a smartphone or credit card.

Original article here.

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