Australian (ASX) Stock Market Forum

Cashless society

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wayneL said:
Yes nothing at all to do with age but more a matter of awareness
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Isn't funny how the so called 'enlightened' are the first to bring up someone's age.

Here is some old geezer offering his view on cash -



Why Does Warren Buffett Always Pay In Cash?

If Warren Buffett ever walks into your store or restaurant, he's likely to pay for his purchases in cash.

"I've got an American Express card which I got in 1964," Buffett, who's worth more than $88 billion, told Yahoo Finance last year. "But I pay cash 98 percent of the time. If I'm in a restaurant, I always pay cash."

That's right. Warren Buffett — one of the richest guys in the world — prefers to pay in cash. In fact, he says that he pretty much always carries around about $400 with him. Is it because he's afraid of credit cards? Does he have security concerns? Is he avoiding those annoying late fees and penalties in case he doesn't pay off his balance?

Actually, it's none of those reasons. The explanation is that, for Buffett, paying with cash is "just easier."

Buffett, however, is part of the minority. Each year, fewer and fewer people pay cash when making purchases. In fact, according to a 2017 U.S. Bank survey of more than 2,000 Americans, 50 percent only carry cash about half of the time. Among people who do carry cash, nearly half of them say it's less than $20 and 76 percent say it's less than $50. I'm betting the number of Americans who don't carry cash has likely increased since then.

So there's a growing number of people who don't like to use cash, yet there are still plenty of people like Buffett who prefer to —or have no other choice because they can't get credit. Clearly, we're in a time of transition. Twenty years ago, cash was king. Today it's less so, and 20 years from now it may be gone altogether.

But if you're running a small business in 2020 none of this should matter. Why?

Because you want to make a sale. And the last thing you want to do is to turn a customer away because they're not paying the way you want them to. I frequently run into small businesses around the country that do this. They tell me — the customer — that they only accept cash. Or they have a "minimum credit card purchase" policy. I've also visited other businesses that — despite legislation in towns like Philadelphia, San Francisco and recently New York — only accept credit cards. These people would literally turn Warren Buffett away.

This is not only dumb but also insulting to the customer. Today's consumers all have preferences as to how they want to pay for their purchases. Some, like Buffett, prefer to use cash. Others like credit cards. Mobile payments like Apple Pay (which is on pace to account for 10 percent of all global card transactions by 2025) are obviously becoming more popular. Maybe bitcoin will finally be less volatile in a few years. Maybe we'll be accepting the Yuan as currency in a decade or so. Who knows?

It doesn't matter, though. If you're a small merchant or restaurateur you've got to give your customers the choice. You've got to offer all those options, and you need to figure out how to make it work financially. Sure, there are fees and costs for offering credit cards or mobile payments, but there are easy accounting tricks — like these — to help offset those expenses. Your job is to figure it out. Why?

Because it's the customers' choice. Not yours. You wouldn't want to turn Warren Buffett away just because he prefers to use cash, just like you wouldn't want to turn any customer away just because of the payment method they want to use.

Well, at least not until you've got $88 billion in the bank.
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Warren is great, but yeah he is an old guy stuck in certain ways of acting, he grew up using cash, and will continue using cash, the younger generation are growing up with digital payments.

Also, Buffett (and I) own American Express, Mastercard and Visa, I think deep down he is quite happy with a move to cashless payments, especially using Apple devices which we and the other Berkshire shareholders own 5% of 😊.
 
Value Collector said:
Warren is great, but yeah he is an old guy stuck in certain ways of acting, he grew up using cash, and will continue using cash, the younger generation are growing up with digital payments.

Also, Buffett (and I) own American Express, Mastercard and Visa, I think deep down he is quite happy with a move to cashless payments, especially using Apple devices which we and the other Berkshire shareholders own 5% of 😊.
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Heretic :p
 
moXJO said:
You right now:
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Hahaha… what?

Pepsi has been trying to sell fake coke of years 😉 there will always be imitators.

but in reality, I have been watching Greg Abel’s career at Berkshire, and he very good, I added to my Berkshire Recently because of my confidence in him.
 
Value Collector said:
Hahaha… what?

Pepsi has been trying to sell fake coke of years 😉 there will always be imitators.

but in reality, I have been watching Greg Abel’s career at Berkshire, and he very good, I added to my Berkshire Recently because of my confidence in him.
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See what happens when you diss the old man.


:roflmao:
 
moXJO said:
Going to be an end of an era once buffet goes. Lest we forget
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Definitely, but it is good to know that it’s in good hands. And Buffett started with a little bit of nothing, Greg will inherit a mighty hand.

None of us want to lose Buffett, but when he does finally lay down his last balance sheet, it’s going to be interesting to watch where the company goes from there.

who knows they may even start paying dividends, I just hope Buffett lasts until the class A shares hit $1,000,000 that would be a great life achievement, to take a stock from $6 to $1,000,000 per share.
 
Value Collector said:
Definitely, but it is good to know that it’s in good hands. And Buffett started with a little bit of nothing, Greg will inherit a mighty hand.

None of us want to lose Buffett, but when he does finally lay down his last balance sheet, it’s going to be interesting to watch where the company goes from there.

who knows they may even start paying dividends, I just hope Buffett lasts until the class A shares hit $1,000,000 that would be a great life achievement, to take a stock from $6 to $1,000,000 per share.
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Might be like the apple story. Steve jobs could work a crowd. I can't even remember the guys name that took over off the top of my head. Safe pair of business hands, not much pizazz or innovation. Crowds will possibly drift.
 
moXJO said:
Might be like the apple story. Steve jobs could work a crowd. I can't even remember the guys name that took over off the top of my head. Safe pair of business hands, not much pizazz or innovation. Crowds will possibly drift.
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Tim Cook over from Steve, and he has been great too,
Check out apples chart since Steve died, it up 10 times

The Culture at Berkshire is strong, you have to remember its already a massively decentralised business, Ajit already runs the insurance businesses, Ted and Todd are running the investment portfolio along with Warren, Greg runs the wholly owned businesses but each one has talented managers.

you could close the Berkshire Head office and just have a book keeper collecting the dividend checks from the 100 or so owned businesses and it would do well for a couple of decades probably. And that’s basically what Warren has been doing, hence the $189 Billion in cash. (well not cash, its in 30 day bonds)

IMG_1942.jpeg
 

Trying to save money? Pay in cash​


Cash is in crisis. In Australia, it’s now only used for 16% of in-person transactions, down from about 70% in 2007.
The situation is so dire that Independent Federal MP Andrew Gee has introduced a private member’s bill that would force businesses to accept cash or else face big fines.
The reality is that over the past decade, technological advancements have utterly transformed the way we pay for goods and services. Phones and smartwatches can now easily be used to pay by card, and buy-now-pay-later schemes and cryptocurrency payments offer further alternatives.
The shift away from cash only accelerated throughout the COVID pandemic, as health experts recommended avoiding using it for hygiene reasons.
Despite these big changes in how we spend money, Australians have perhaps been more focused on how much amid a stubborn cost-of-living crisis.
In light of this, our research team wanted to investigate how our choice of payment method can interact with our actual spending habits. Our latest research offers a simple solution for anyone looking to save money — carry more cash!

We pay less when we pay cash​

Drawing on both academic and industry sources, our research team combined the results from more than four decades of prior research on spending behaviour and payment methods into a large dataset.
This data spanned 71 research papers, 17 countries, and more than 11,000 participants. State-of-the-art meta-analysis techniques then allowed us to collectively analyse the results from all these prior studies, and re-examine their insights.
We found that cashless payments were indeed associated with higher levels of consumer spending compared to cash transactions, something that is referred to in the literature as the “cashless effect”.
This cashless effect was consistent across all other payment methods in the data set.
Put simply, it doesn’t matter whether you use a credit card, debit card or a buy-now-pay-later service – you are likely to spend more money using cashless methods than when you pay with cash.

The pain of paying​

Under the traditional economic view that consumers behave rationally, there should be no differences in spending behaviour between different payment methods – money is money after all. But the existence of the cashless effect shows that the payment methods we use do influence our spending behaviour.
The leading theory to explain this effect attributes it to differences in the “pain of paying”, a concept first coined in 1996 that describes the emotions we feel when spending money.
Importantly, our choice of payment method can influence the level of pain felt. When paying with cash, we have to physically count out notes and coins and hand them over. Humans seek to avoid losses, and paying by cash sees us physically lose a tangible object.
Conversely, nothing has to be handed over to pay cashlessly. We don’t lose anything tangible with a swipe or a tap, so it feels less painful.
Preliminary neurological evidence suggests that the “pain of paying” isn’t just an abstract metaphor, and we may feel actual psychological pain with each transaction we make. Research employing functional magnetic resonance imaging (fMRI) scans to observe brain activity in consumers has shown that paying activates brain regions related to experiencing psychological discomfort.
Picture this: You’re at a theme park, excited for a fun day. You use your smartwatch to pay for snacks, souvenirs and rides. It’s all so convenient that you don’t realise how much you’re spending until you check your account later and see that you have completely blown your budget!
This is the cashless effect in action - if nothing is physically handed over, it’s easy to lose track of how much is spent.

A great tool for budgeting – while it lasts​

The cost of living crisis has made spending control front-of-mind for many people. Our meta-analysis suggests that returning to “cold hard cash” whenever possible could be one valuable tool to help.
The increased friction felt when using cash could help people better control their money, even just by providing a moment to pause and consider whether a transaction is necessary.
This could help individuals make more mindful decisions, saving money while they can in an increasingly cashless world.
The Conversation


- The Conversation


Lachlan Schomburgk, PhD Researcher in Marketing, University of Adelaide; Alex Belli, Senior Lecturer in Marketing, The University of Melbourne, and Arvid O. I. Hoffmann, Professor of Marketing, University of Adelaide
This article is republished from The Conversation under a Creative Content ....
 

Trying to save money? Pay in cash​


www.firstlinks.com.au

Trying to save money? Pay in cash

The cost of living crisis has made spending control front-of-mind for many people. New research shows that paying by cash rather than card, even if inconvenient, can be a valuable tool in controlling expenses.
www.firstlinks.com.au www.firstlinks.com.au

yep

when the wallet is empty and you have to go to the coin jar , that is a big signal to cut back spending
 
This morning on ABC Australia they had a segment on Cash, they mentioned that studies are showing that using cash instead of tapping helps control a person's spending and helps them save. At the end they asked one of the young ABC interns about it and she said that she always carries cash and uses it because of the exact things that the studies have shown - using cash gives a psychological feeling that causes restraint. She also said that a lot of her friends also use cash.

Funny how we have organisation's spending money on studies, which tell us what we already know.

"Interestingly, Millennials in Australia are significantly more likely than other generations to prefer cash payments. Around half say they like to use cash, compared to around two in five for other birth cohorts."​
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“Cash Day” protest in Australia: How popular are cash payments among Aussies vs other APAC markets?

In protest against Australia’s growing shift towards cashless transactions, pro-cash activists recently organised “Draw Out Some Cash Day” on April 2, which saw large numbers of Aussies flock to bank branches and ATMs to withdraw cash – and demonstrate to financial institutions and retailers that there is still a demand for cash.

But what proportion of Aussies today like using cash when making payments? And amid expert predictions that the country will become completely cashless by 2030, how many Aussies believe that cash will remain a relevant form of currency in the near future? Now latest research from YouGov sheds light on these questions and how attitudes towards cash in Australia compares with other key markets in APAC.

How popular are cash payments among consumers in Australia and across APAC?​

Latest data from YouGov Profiles reveals that over two in five (43%) Aussies like using cash to settle their purchases. This is significantly higher than in Singapore (34%) and Hong Kong (31%), but lower compared to Indonesia (63%) and Thailand (53%) where a clear majority of consumers indicate so.
On the other hand, about three in ten (31%) Aussies prefer making cashless payments, while over a quarter have no clear preference.

Interestingly, Millennials in Australia are significantly more likely than other generations to prefer cash payments. Around half say they like to use cash, compared to around two in five for other birth cohorts.

1717639792193.png

Do most consumers think that cash will continue to be relevant in the near future?​

Latest YouGov Surveys research also shows that half (50%) of Aussies think that cash will become irrelevant in ten years’ time. This is lower compared to other APAC markets such as Thailand (61%), Indonesia (57%), Hong Kong (53%) but higher than in Singapore (44%).
In contrast, about two in five (42%) Aussies believe cash will continue to maintain its relevance in the near future, while 8% are on the fence.

Surprisingly, a generational analysis reveals that Millennials in Australia are most likely to believe cash will become outdated in the next ten years, with almost three in five indicating so – despite having the largest proportion who like paying in cash. While more than half of Gen Z and Gen X also think so, most Baby Boomers believe cash will remain relevant in the coming decade.

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Please don't tell me we have had to pay for reseach into this, oww wait they have to publish a paper to keep funding from memory.

Another reason to love TAP!
Cash is and always will be KING but that's for a whole other story.
 
JohnDe said:
This morning on ABC Australia they had a segment on Cash, they mentioned that studies are showing that using cash instead of tapping helps control a person's spending and helps them save. At the end they asked one of the young ABC interns about it and she said that she always carries cash and uses it because of the exact things that the studies have shown - using cash gives a psychological feeling that causes restraint. She also said that a lot of her friends also use cash.

Funny how we have organisation's spending money on studies, which tell us what we already know.

"Interestingly, Millennials in Australia are significantly more likely than other generations to prefer cash payments. Around half say they like to use cash, compared to around two in five for other birth cohorts."​
View attachment 178246
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Wow I just learnt something that I didn't realise.
By using cash you have control on how much you spend.
This was ingrained into me so, so long ago that I can't remember that far back.
Hark, cash is King;, long live this King.
 

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