*At least 122 million Americans are at risk of digital exclusion due to a drop in cash use, including the elderly, homeless and mentally ill, research shows.
– Global Payment Trends reveals the financial and societal impact of ceasing to use cash, which has been accelerated as a result of the Covid-19 pandemic.
– The latest data shows that the use of cash as payment for online orders has dropped by 75% in the last year, now accounting for just 1% of all transactions.
– 567,715 people are estimated to be homeless in America, while a further 55.9 million Americans may struggle to use digital payments due to old age.
At least 122 million Americans could be at risk of being left vulnerable in society due to an inability to use digital payment methods, despite a drop in the use of cash, new data reveals.
Analysis has revealed that if this reduced access to cash continues, 122 vulnerable Americans would suffer due to their dependence on physical payment methods – including 51.5 million people suffering with mental illnesses that may restrict their day-to-day activities.
Also at risk of digital exclusion in the US are the 567,715 Americans that are estimated to be homeless, the 51.5 million residents aged 65 and over that may struggle to adapt to digital services, and the 14.1 million people that are currently unbanked.
Global Payment Trends collates official data from payment reports and demographic statistics to reveal the potential societal repercussions of digital exclusivity, whereby coins, dollar bills and checks are replaced by eWallets, credit transfers and debit cards.
Data reveals that cash use fell by 21.9% across North America as a percentage of point-of-sale (POS) transactions on top of the online decline, while mobile wallets gained substantial popularity at the end of 2020 as a preferred contactless payment method.
A noticeable decline in cash use around the world appears to have been accelerated during the pandemic, as the latest data reveals cash usage as payment for online orders has dropped by 75% over the past year and now accounts for less than 1% of transactions.
This paired with the World Health Organization’s earlier concerns that the virus could be transmitted via banknotes could leave millions of people without vital access to cash.
Vulnerable members of US society
Homeless  567,715
Aged 65+Â Â 55,939,448
Unbanked  14,100,000
Mentally Ill  51,500,000
Among those who may struggle to make payments in a cashless society are the 51.5 million Americans who are living with a mental illness that may impair their ability to manage or monitor their money, as outlined by the National Institute of Mental Health.
In fact, one in five Americans are thought to be experiencing poor mental health at any given time, meaning a staggering 66,200,530 could be at risk of societal exclusion overall.
It’s never been more important for policymakers to ensure adequate provisions are in place to support vulnerable members of society – especially given recent survey findings from the Centers for Disease Control that revealed US adults were experiencing ‘considerably elevated adverse mental health conditions’ during the pandemic.
Helen Undy, Chief Executive of the Money and Mental Health Institute, said: “When you’re struggling with your mental health it can be much harder to stay in work or manage your spending, while being in debt can cause huge stress and anxiety – so the two issues feed off each other, creating a vicious cycle which can destroy lives.
“Ensuring that money advice is routinely offered to people using mental health services would increase recovery rates, as well as improving the financial wellbeing of the millions of people currently dealing with this terrifying combination of problems.”
To find out more about the impacts of digital exclusion in the Global Payment Trends study, visit: https://a2zcasinos.org/global-payment-trends/
Research gathered from a range of sources, including the World Health Organisation, WorldPay Global Payment Trends, the National Institute of Mental Health and the US Census Bureau. The US population is 331,002,651.
Source: Emily – [email protected]
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