Once upon a time, say about 1970, cash was king in the United States. Many people paid bills by check, but cash was used for every-day expenses. A trip to the grocery store, restaurant or service station (remember those?) then usually involved payment in cash. No more. Today, plastic increasingly is the currency of choice. Credit and debit cards might not rule the marketplace yet, but they are strong contenders for the throne.
It’s getting easier to make a case for the primacy of plastic. Treasury Department numbers tell the tale.
The number of dollar bills printed by the Treasury Department last year declined to a modern low. The number of $5 bills printed was the lowest in 30 years. No $10 bills were printed. The use of plastic is not the sole cause for the declines. Modern paper currency lasts more than twice as long as that of two decades ago so fewer bills are printed. And contemporary business models and lifestyles seem to favor plastic.
Online businesses, for example, have no provision for payment in cash. It’s plastic or nothing. Electronic payment systems have reduced the need for cash, too. And many consumers feel safer when they aren’t carrying large sums of cash. Moreover, the use of remote and handheld devices have made it easier and more efficient for consumers to use a credit or debit card than cash in many instances.
In New York City, for example, more than a third of taxi fares were paid with plastic last year. The use of plastic to pay for relatively small purchases is not limited to big cities. It occurs here with increased frequency.