Tuesday, February 23, 2016
In my explanatory synthesis I am explaining why we still use cash and why it is still relevant. Over the years many new forms of electronic payment have come in to play forcing a decline in how often we use cash. This forms of electronic payment include things like credit and check cards, apple pay, Samsung pay, and other forms of online banking. With the rise of so many options for ways to pay cash has still survived despite the ability to condense money into a single plastic card or phone app. My essay aims to explain why and how cash has maintained its relevance and usefulness in today's high tech economy. Source 1 - Why is Cash (Still) so Entrenched? My first source is a paper written on the predominance of cash use over electronic payment in Canada. The paper discusses why cash is still used in over half of transactions in Canada despite the rise of other payments such as store-valued cards and debit and credit payments through phones. The research ultimately found that people prefer cash because of its ease and speed of use as well as its wide acceptance among vendors. Source 2 - Image This sources gives a plot of why cash is used relative to age and income. The chart divides reasons for cash usage into seven different categories: cash is more convenient, less expensive for the merchant, easier to budget, can be used for personal payments, can be used for contributions, debit cards aren't always accepted, and customer gets discount for using cash. Source 3 - Paper Money Collapse This source is a chapter from a book that explains the benefits of paper money to banks and other institutions.