A cashLESS society 930in716 July 27, 2018

Friday, July 27th

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

It's 930. In 716. So just how much cash to you have on do 200. Literally. Zero and really you can't get away from having cash because not everybody can accept an electronic payments are we becoming a cash less society. You know you don't even need your wallet and Marty just eager are all org or else. And. Wanna put everything. We can't get at it. I'm Jim Wenger on 930 and 716 powered by the Brothers of mercy a five star rated skilled nursing residents offering affordable living. In a country setting it really is an intriguing discussion as we. Ask if we're becoming a cash less society. We're hearing more and more about places that still treat cash is king and in some cases. The only thing that's accepted. So with this precipitous increase in electronic methods of payment. Brian has aroused he meandered about and asked how much cash do you have. On you do. Forty dollars right now to zero you know literally. Zero you agree that head up 4050 dollars 4050 and forty or fifty dollars alchemy here cash. Because I don't like to use my credit card it places that don't do written me off yeah I mean can't have the dollar and a bunch of points. Why one. Because my kids usually take the rest of it. Canadian dollars. Ten dollars. Technology you have like usually more or less lesson that somebody gave me money and I gave me something I bet my other hand you like carrying cash around and I regret and. Yeah I like my stomach hurts. The three bucks three bucks three good. Physically he would get a terror always. Dennis charitable paying union it usually don't that's usually just my cards I have Cassius for a reason and it's usually spent pretty quickly. About a food truck they keeping up with the times and allowing payment electronically as well as cash. Peterson Mino with Lloyds taco truck talks it out with Mike Ackerman. In the beginning it accompany your strategy that much money Canon dot awfully good at what percentage points in. Not collect credit our guy that would be adequately dealt but. It turn out wrong wrong decision and I am happy that we been with square I her over here now and now. The company. To their credit. It's really grown offer a lot features knowing analytic and the customer service and improve but ultimately the user interface and they're that dumb. In I think what most convenient for. And armed people argued. Square we are at an apple paying. I added feature dull you know you don't even need your wallet and Marty just eater your iPhone or your you know and. For people that are unfamiliar with the smartheat features like square exactly if they were go up to Lloyd's taco truck and saying you know get whatever taco. Then they go to pay with the square feature what exactly do they have to do. Well if they want agents like their car but if they don't wanna do that they can use. Eager apple and at all. And basically it register their cart through the apple has done much to it almost everyone at that point. Really just got to technology. And it came out showing their own normal putting it all out of the. One locals by you can't put down a card is at Tatis the famed local hot dog burger and shake join out an Orchard Park. Change doesn't happen fast there and welcome cash is king it's all owner rich Helio will take. As you're walking through this case there's a sign right there at this place cash and welcome into one ET. Golden dollars whether it's credit cards apple pain square DOS system that's been out there I think which is canceled. Well I think you're you're you're going back to when you know for being in business so long. What will start off if you had 99 and Asian you go to the bank they gonna give you doubt. Now today a penny is probably direct her rep reveling. You know the new penny today is a quarter. So when we used to go up a tenured threw for a you're going up fifty cents orders. Things double. So. When I looked at what I have to page. To be. And hit if you want to call. Is for actually choose. Two to 4% maybe to history percent. My cash flow for business right ones. Tacoma put Ting Randy hear me. Heads into her for me. You know so if I lose clients. Well. I don't know how much business they lose by going care but it this particular juncture I could care less you mean. You don't care how much cash us. Well. How many people won't come here because that day don't take credit. OK so. I don't know what that percentage is ordered really need to worry about it as of now I'd make my sales seem to stay pretty relative. Good when it's supposed to be good Edwards goes. There's also little arm here you know I am very I won't even tackle. Its term. And I feel like you know. In a way you stand out you know here you are. Put it to me. Okay. So where we had as a society with cash verses credit actually had a chance to travel allied to Asia earlier this year. And in China in places like that though over. In Asia this is something that's much more developed than it is here. We invited in and Hutton professor and director of the financial markets laboratory had. Niagara University. Oh for the amount of electronic payments that we had in the United States China is ten to twenty times more. Involved with that there's a lot of places right now. That the only way that you can pay for things is with us Smartphone. In Asia so this is a trend it's. Worldwide. In the United States in this case is really kind of falling behind some of the other countries well I mean cash was always came here. Is that no longer the case no it's not deny aid for a certain transactions. Maybe yes smaller denomination transactions. If you really you can't get away from having cash because. Not everybody can accept an electronic payments so think for example going to a farmer's market you know we're gonna Wear this season now with farmers market. It's just not worth it for them to go through. The process of having to pay eight. The additional amounts in net the cost to set up those systems but those are getting with fewer and farther between. Oh with my a students. Pretty damn good to actually. Spend their summer and two. To use guys services like over. They just don't remember how to pay for a cab anymore. They you have to. Pay in cash in that you need money for a tip. Who is just not something they know how to do anymore. Hey hey I've run into the exact same problem on because you're so used to going cash those were things. What do you mentioned China and Asia and he gets ten to twenty times the amount of you know yeah electronic transactions. Why they're what is the difference there well. If you think about what a lot of the resistance is to using electronic payments it's because we're used to a system where used to carrying cash. A K or were used to paying by check and we've been doing that now in the United States the system Lily pad. Really almost a hundred years that we've been doing in the United States. In China and other places in Asia they really didn't have a middle class that head. Excess money to be able to spend on things really pay you know was headed just enough money to be able pay for substance while. That's all changed with the rise of the middle class in Asia right now and so they have cash. But they didn't have the same customs the same traditions the same baking type systems that we had so for example credit cards. What we're used to using credit cards will they really in places in Asia and other places like India. Well they really didn't have that there wasn't that well developed making systems so as they've come into the middle class. It wasn't like there were habits they had to break. And so what came in was cellphones. And companies like Alli Bachmann Tencent. And they make their money through their payment systems so. There wasn't a habit for them to you have to break it. Packing now the fear them hackers and spammers. Well lady it. If you took the go in in a listen to some people talk about cyber security and if you see active we're just going through right now via. Banks talking about their release of their earnings. And when you go through air like I do I read all of the statements from the banks and they say what's the thing that concerns us the most. It's cyber security and it's hacking and it's these payment systems because. What what happens with these paid assistants as we have everything flowing through a central. Authority you know that's where all the transactions are cleared and as we're hearing a lot about. Those systems can be hacked. And we talked a lot earlier this year about things like the data breaches. Well with those data breaches those are those are hacks and with all those transactions that going through that yes it there's a great deal of vulnerability. And Hutton is here from Niagara University were talking about a cash less society people are either. Cash people or they're no cash and cash less but if you have cash. Do tend to spend more or not. Yeah there's a lot of it lot of work being done right now we in this field they cut a combined psychology. And economics. And it cola behavioral finance and one of the things that debt people have been setting misses are seeing is that when people have to pay cash. They think a lot more about what their buying. So they think in my really getting a good deal of my getting good value might really gonna enjoy this cup of coffee. That they get but because of the fact that the money comes and if your pocket and he kind of recognized that. The loss right there but when it trip comes out that you put something on electronic payment system look at credit card is something you tend not to think about. Having to pay for it and so you spend a lot more in an anywhere from ten to 15%. From war. Spending so the merchants the people licked. Are selling things really liked it's because you don't think about who things as much I so you go ahead and and yes he spent a lot more. I find that even with in electronic payments there's a difference between paying with your credit card and paying with something like an apple pay if I'm buying something online. You know if I'd have to type out my credit card number and things like that. I might think twice yes sir I don't wanna do that but if there's the button apple pay and it does it boom in us now I'm more likely to make. And yeah we call it we call a fraction you know I collect friction and it and that's that's the cost that's all of that the trouble you have to go through that hassle to bill to make a payment. Right now Amazon the TO Leo's kind of taking over the world Amazon has grocery stores right now that they've set up in Seattle. Where you don't even have to take out your credit card. All you do is to go in and you have your Smartphone with you and you load up your card and then as you leave the star. It reads the chips that are on the now on the items that you purchase. And bills he. So you don't have to wait in line you don't have to scan your items you don't have to do any of that all you basically do is. Goal out of the store put things in a bag and leave. And it shows up on your bill. That's pretty cool yeah essay back. We're talking about a cash our society was and Hutton this morning in an even for those who are perfectly content being cash less yes there's good reason. To always have some cash and you know from personal experience a recent trip. Yes sure one of the things that I had a chance to do right after graduation at Niagara University is I took a group of Niagara University students. On a trip to Puerto Rico. And so we went down there. To help blow rebuilt some schools that had been now. Not depart by hurricane and they've had. And when we were there. We talked so a lot of the people about what happened last year after an arcane. And though with all of the devastation that it happened. How we after the immediate crisis was take care of the bigger ongoing crisis there has been the lack of electricity and it's and the lack of ways to eight people. Because it affected you Puerto Rico's varies similar. To hear us in the mainland everybody nobody carried any cash everybody used electronic payment systems well. In some of the places there the electricity has been out for eleven months. And with no electricity there's no ability to be able to pay by. So form there's no ability to be able to use ATMs now a lot of those have. Are being repaired right now but it changed the way that I felt about keeping some cash because. But we don't have the the same type of hurricanes like they do that weigh in now. In the south as much but that's something that can happen and so. When that happens think about not having any electricity and not having the ability to pay for those things. With credit cards are so it's changed the way I ate. I keep some extra cash all you have to do is think back to something like the October storm that happens on a little bit wider scale and if you don't have any sex contest yet in trouble and it doesn't just have to be a lack of electricity these are hesitant before these are. Payment systems these repayment systems that are. Really very centralized and something can happen to them. And if that happens you may not have that ability to be able to get those transactions cleared so you might find yourself with that. Payment system that doesn't work so. I keep some cash yet. Always that's a great lesson in there and you sit in and Porter other bartering. An eagle after the after the hurricane. Because of the fact that there was a case the ATM's all of the money had been taken out of the ATMs they weren't able to get cash in. And so people resorted to bartering you know being trading things and that sort of stuff and so what we saw. Was part of the devastation that was com and it was just because of the lack of cash. There were things terabyte but it wasn't in namely to you when you think about that scenario even not even on that big of a scale but see you can be in that scenario just a year round the middle of nowhere somewhere they don't have power and yet you're stuck with our cash. For those reasons will we ever truly be eight cash less society. I think we're we're moving in that direction we are certainly moving in that direction is that as I said before. In other parts of the world it is it is almost to that says right now so how much is in your wallet. Will be back Monday. That's 930 and 716. We're back tomorrow with a net irritation from the studios of WD EA and buffalo law.