As we read reports of a backlash against the implementation of a cashless society, perhaps the time has come to forget about this as a universal concept. Every country is different. They all start from a different position, with different banking systems, varying levels of poverty and different attitudes to change. When it comes to payments there is no one size fits all solution. You only need to look at differences in the way in which credit card payments have evolved in Europe to recognise that things like attitude to debt have influenced the payments mix across the continent.

Perhaps what we should be looking at is what is the most effective combination for each country. Take the situation in Africa. The circumstances of each country vary greatly. Much has been written about developments in countries like Kenya (MPesa) and Zimbabwe (where cashless grew as cash in circulation declined). At the same time there is a certain irony in the comment from africanews.com (9 April 2019) that 'while cash is still king with up to 95 percent of retail transactions using cash in Africa and the Middle East, the future of cashless is promising'.

Even in developed economies, there remain large numbers of people who are reliant on cash to make payments. The World Economic Forum (2 May 2019) reports that in Philadelphia, where recent legislation ensures retailers now have to accept cash, 13 percent of the population don't have a bank account.

What are the benefits / costs and indeed opportunities of changing people's behaviour? Where there are high levels of unbanked individuals, is the solution to coerce people into the banking system or to recognise that there is a sector in society that has no need of or desire to hold a banking account? In other words, are we approaching it from the wrong direction? Instead of saying how can we improve what we've got is the approach rather how can we replace what we've got? To which the response must be 'is it broken'?

I could ask another question. What are the ideal conditions necessary for a society to adopt a cashless alternative and how far short of this utopia are most countries? For example, how important is smartphone adoption? Or should we rather be looking at people's willingness to use such devices to make payments? You'll notice I'm asking a lot of questions and not providing many answers. That's because I believe there has been a lack of analysis and debate. Rather we are being asked to walk blindfolded towards what is some people's vision of the future. In those circumstances it is hardly surprising that people rebel when told that they can no longer pay by cash in their favourite store without any explanation as to why it is in their interests, or if there is an explanation it is written from the skewed perspective of the scheme provider.

In the UK there is a growing recognition that the path to cashless is not without pitfalls. In a February FT article entitled 'Is Britain ready to go cashless?' it was pointed out that 'our growing dependence on electronic payments and the digital economy is not without risk. Older people and lower income groups are at risk of financial exclusion. It can put small businesses at risk of losing customers. And as more of us leave cash behind, the potential fallout from cyber-attacks and outage increases'. The article also noted the finding of the draft Access to Cash report that 25million people in the UK would find it problematic to live without cash and 17 percent would find it almost impossible.

Is the mood changing? Wherever you look there certainly seems to be a growing recognition that the path to cashless is not a smooth one. Even Sweden has 'told all its banks to keep offering cash services and has outlined the dangers of sleepwalking into a cashless economy'.

The debate continues. Is a cashless society achievable, and is it in consumers' best interests? What are the implications for the removal of anonymity? How important are peer to peer ePayments? What are the implications for tax collection and interest / monetary policy? Does a cashless society assume glitches are a thing of the past?

Where does it leave us? There remain issues. In researching this blog, I came across an article entitled 'Is going full cashless a treat or a threat?'. It appears the jury is still out but at least the debate is gathering pace.