cashless society: pro’s and con’s -...
TRANSCRIPT
Cashless society:
Pro’s and Con’s
Prof. US dr hab.
Beata Świecka
University of Szczecin
Poland
Rectorat of the University of
Szczecin
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Contents
Cashless payment instrumens
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Stages of cashless payment
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Direction of cashless4
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World non-cash transaction
Arguments for and against the liqudidation of cash
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CASH OR CASHLESS?
„Will it happen, that cash will only seen in museumsand numismatists albums?
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1950 Payment cards (Diners Club)
1958 Visa International
1968 MasterCard
1964 CD, ATM, POS
Electron Card
2004 Proximity card, Contactless payments NFC (Near Field Communication)
Mobil Payment
Stages of cashless payment
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Global payments technology
company. Payment system
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Card of telefon or……?
Which instrument we will use?
Are the cards will disappear from the market?
Are the cards will be replaced by phone?
Question?
Biometric security in payments
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An example of a biometric reader used to
authenticate the transaction
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Cashless payment in Poland
2007 - MasterCard PayPass, (contactless card)BZWBK, First Bank in Central and Eastern Europe (in Europe 2005)
2008 - Visa payWave), BZ WBK (on Europe 2004)
1969 – acceptance of foreign cards in Poland
1991 – the first payment card - for companies (Visa Business, BIG SA); the beginning of the payment card market in Poland
1993 - first debit card for individuals (Visa Classic Pekao SA)
1996 – First electron cards (Visa Electron, BSK)
1999 – the first cards with microprocessor
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Word non - cash transactions
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Number of Non-Cash Transactions per Inhabitant for selected country 2010-2014
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Factors influencing the
success of mobile payments mobile commerce clusters – cooperation between banks,
mobile network operators, and the government
environment – economic, technological and demographic factors
infrastructure – penetration of the mobile industry and NFC,
consumer readiness – the willingness of consumers
financial services – analysis of financial services available to consumers
regulation – regulations and their impact on businesses.
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Mobile Payments
Readiness Index
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Paymentcards
Paymentby telefon
Biometric incards
and infrastructure
……?….. Cashless
Direction – cashless
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Limit cash transactions
stop to use paper cash in bank branches
NO credit repayment by cash
Out of paper currency with
large-denomination notes
NO coins and bills
Chip in human body?
CASHLESS
Out paper money. STEPS TO CASHLESS20
Microprocesor used in humanRFID (z ang. Radio-frequency identification)
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2 mm x 12 mm, 888 bit’s each.
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NBC Reports : Americans Will Receive a
Microchip Implant in 2017.
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Sweden – chip - entrance
„Do you want to
gain entry to office,
get on a bus,
Or buy a sandwich?
We're all getting used to a card to do all these things. But at Epicenter, a new hi-tech office block in Sweden, they are trying a different approach - a chip under the skin.”
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Benefits of cash liquidation
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Arguments for and against the
liquidation of cash
Cashless
Arguments of cashless
Non-cash payment is cheaper and more convenient cash 0,93 USD, cashless 0,56 USD
Limitation of money laundery and corruption
Stepping up the fight against the gray economy
End of fakes
Stable financial systemIncreased security measures on thepayment card
CashArguments of cash
The anonymity of the transaction
Account Fees, do not pay anything holding cash in your wallet
The bank may have negative interest rates
There is no limit access to the money. NO BLACKOUT
Without state control
Cards can be mechanically damaged
They are charged for card fees
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BRRD (Bank Recovery and
Resolution Directive) 2014
Huge controversy
arouse records that
bank located in a
very difficult
financial situation
will be able to
reach out for the
money of their
clients.
In 2013, when the Cyprusbanking sector stood on the bankruptcy, the government applied the mechanism, which consisted in the introduction of a special "emergency tax".
On deposits up to 100. 000euro - 6.75% value of savings and deposits
over 100.000 Euro - 9.9 %
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Until 2016 limit cash settlement
enterprise – 15 000 euro
Since January 1, 2017. This limit will be
changed and will be 15 000 zł. (3500
euro)
The Council for the Payment System
operating at the Polish National Bank
for cashless presented the demand to
reduce the limit cash settlement
enterprise to the equivalent of 1 000
euro.
Poland - case
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Sweden – case – changing
mentality
"Cash is still needed only your grandmother
and bandits robbing the bank.”
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2020 – Norway without cash
Norway in 2020 may
become a country
where you do not use
cash.
Only 6% of Norwegians now
use physical cash.
"Currently in circulation is
approximately 50 billion crowns
and the central bank is unable
to determine what is
happening with only 40
percent of this amount.
This means that 60 per cent of
the movement of money is out
of control. We believe that this
happens because of
corruption and money
laundering
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Banks DNB and Nordea have already stop to
use paper cash in their branches. And not
without reason presses on its liquidation.
As a result, banks will have control over all the
money, all transactions will be taxed and
collected from the levy.
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Country witout cashFROG JUMP
Moving away from cash payments for mobile transactions is not only
the domain of developed countries.
In Kenya, more than 15 million people use the M-Pesa. Using a mobile phone Kenyans receive:
salaries,
they pay for school
and buy everything from beer to airline tickets.
Currently, many countries, among which are: Estonia, the Philippines,
Japan, South Korea, Sweden and Turkey is considering the withdrawal of cash from circulation.
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USA - case
Chase Bank in the US has
banned customers, who
want to to repay the
debt from credit cards,
car loans and mortgage
loans using a cash.
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Persons and institutions support cashless
American expert, famous economist prof. Kenneth RogoffHarvard University,
2001–2003, Rogoff Chief Economist at the International Monetary Fund.
2016 book with Curse of Cash
According K. Rogoff, the historical
mission of cash came to the end.
Cash is an anachronistic form of
payment, and should therefore be
replaced with cashless payment.
Liquidation of cash would save the cost
of its emissions, counting banknotes,
transport, storage and capture of
forgeries, replacement of worn
banknotes with new, etc.
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Persons and institutions support cashless
Peter Bofinger (1954) Germaneconomist and member of the
German Council of Economic
Experts.
He argues "The coins and banknotesare the current technical capabilities of
an example of anachronism.
Cash is obsolete. Even more important,in his view, would be to abolish the
cash market for the liquidation of illegal
employment, and drug trafficking.
"Nobody needs them to shop, but
criminal business use them.
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Summary1. There is no turning back from cashless.
2. Cash will be withdrawn from the market. The
only question is when?
3. Cashless is good idea for public institutions
(government, cental bank, commercial
banks), worst for consumers.
4.
In the future, each of us will have to make a
decision regarding the acceptance or non-
acceptance of human microprocessor.
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Thank You……..
Prof. US dr hab. Beata Świecka
University of Szczecin
Faculty of Management and Economics of Services
http://[email protected]
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