Transitioning to a cashless society could "marginalise" some Islanders and make them "more vulnerable to fraud," a charity has warned a panel of politicians.
Community Savings, which offers financial advice and helps members access banking services, is one of the organizations and individuals that have participated in the "Acceptance of Cash Payments" survey launched by the Economic and International Affairs Scrutiny Panel earlier this month. The survey is part of a review exploring the perspectives of consumers and businesses on the use and acceptance of cash in Jersey.
One of the panel’s goals is to determine if there is a need for government intervention, such as requiring all businesses to accept cash or considering its complete phase-out.
In its review response, Community Savings emphasized its dedication to ensuring everyone in the community has access to essential financial services. The charity expressed deep concern about the potential consequences of moving to a cashless society and strongly advocated for the continued acceptance of cash payments.
The charity highlighted that eliminating cash payments would further isolate those already struggling with digital banking. Many community members, particularly the elderly and those with limited technological proficiency, rely on cash for daily transactions. Removing cash as an option risks further marginalizing these vulnerable groups.
Not everyone can access or use electronic banking, the charity stressed. Cash payments are vital for individuals who lack access to digital financial services due to economic, technological, or personal reasons. Cash remains a universally accepted and straightforward payment method, ensuring everyone can participate in the economy.
The charity also argued that moving to a cashless society could make those unfamiliar with electronic banking more vulnerable to fraud. The complexity of digital financial systems can expose individuals to scams and cyber threats, particularly those not well-versed in navigating these systems.
The charity concluded that the continued acceptance of cash payments is essential for ensuring financial inclusion and protecting the most vulnerable community members.
Deputy Montfort Tadier, chair of the Scrutiny panel, stated that one key factor under consideration is social inclusion. A strong theme emerging is concern for people without access to bank accounts or those who can only use bank accounts for cash purposes.
He mentioned that the panel has not yet formed any views but is very mindful of the need for inclusion in any forthcoming government policies.
Deputy Tadier noted that the survey would receive thousands of online responses and nearly 100 written submissions by the time it closes. He encouraged more Islanders to share their views, including those advocating for increased use of contactless payments, to ensure the panel receives a balanced mix of opinions.
Ultimately, he added, the panel will make recommendations to the government to address the mid- and long-term issues at play.
Comments