Wednesday, May 01, 2019
View ShowroomFinancial innovation has changed so much that we're all paying for our favorite new smartphone apps from the comfort of our homes at 2 a.m. and using bitcoins transferred from our mobile wallets. Right?
Clearly, that's not the case for most Americans. The banking and investment landscape has undergone a tremendous transformation in recent decades, and the pace of change will likely intensify.
But that doesn't mean all these newfangled products and services will replace many popular, if somewhat antiquated standbys.
Here are some examples from banking, retirement and other areas.
It's easy to assume paper currency soon will go the way of the dinosaurs. After all, credit and debit cards, cryptocurrencies such as bitcoin and electronic-payment systems such as Zelle could make physical cash as obsolete as eight-track cassette recorders.
But not anytime soon. Both the volume and value of U.S. currency in circulation have been on long-term upward trajectories, reaching record-high levels, according to the Federal Reserve, which oversees the stuff.
"Cash continues to be the most frequently used payment instrument, representing 30 percent of all transactions and 55 percent of transactions under $10," according to a Fed report in November. "While online shopping continues to grow, 77 percent of payments were made in-person."
The volume of cash, meaning the number of Federal Reserve notes, has risen for 17 consecutive years. The 41.6 billion bills in circulation at year-end 2017 were worth $1.6 trillion, also a record that has climbed as more paper money has gone into circulation this year.
Yet the mix of currency has shifted a bit. There are now more $100 notes out there than $1 bills – a recent development – with $20 bills next most common, followed in order by $5s, $10s, $50s and $2 bills. Savers around the globe seem to like $100 notes to store their wealth, while smaller denominations are used more for transactions.
Read the full news article here.
The Withdraw Cash Wednesday campaign is designed to promote consumer cash usage by reminding consumers to withdraw cash from the ATM the Wednesday before the U.S. Thanksgiving holiday for their Christmas Black Friday shopping needs and every Wednesday for their weekend endeavors. Backed by ATMIA, the campaign is also designed to educate consumers about the benefits of cash such as using it as a budgeting tool, reducing debt and saving money by not having to pay credit card interest fees and saving time at the checkout.
You can learn more about WCW by visiting the website and cash blog.