However, as I see it, a problem with moving away from cash is the psychological change it has on spending money. When paying with cash, you must take out your wallet and then take out the coins or notes – in doing so you can see the value more clearly of the cash.
However, when paying by card, physical or virtual, you do not have that physical touch of handling the money you are spending. It is more like paying with chips at a casino, where you pay with these plastic objects that do not feel or look like money.
Advisers may have to help clients budget more, so they aren't spending money that they should be saving.
Advisers also may need to help the older generations to adapt to the newer payment methods while also trying to encourage the continual use of cash.
Theo Gray is a former intern at FTAdviser
