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Marketing Expert
through services that deliver the food, eliminating the need more attractive in light of the mail strikes in recent years. A
to even leave one’s home. cashless system would instantly eliminate any problems or
concerns about receiving payment on time to pay one’s bills.
While running businesses and paying for services without
using cash seems fairly common, there are laws in Canada Although Sweden is facing a potential crisis due to the sheer
that still require businesses to accept cash as tender. This speed at which their cashless society is advancing, there is
means that if someone wants to pay with legal Canadian ample opportunity in Canada to implement the same ideas at
tender, they are allowed to under these payment laws and a more cautious pace. Implementing a cashless environment
the business cannot legally deny them the ability to pay into one’s business involves several key questions: What new
with cash. If Canada migrates to contract law, this will allow technology will be required to ‘upgrade’ one’s business to
businesses to force the customer to do what the business cashless? Will the business not only take payments through
requires. This is why Sweden is moving at an astronomical credit card, but also through smart payments where people
speed towards a cashless society; their contract law can pay with a phone or other device? Is one’s business
mandates that businesses can operate on a cashless basis capable of managing payments directly through a merchant
and customers no longer have the ability to pay with cash system? Will the business be able to manage the increased
legally. traffic of online shopping? How will the business keep their
website, and therefore their online transactions secure?
If Canada were to become a cashless society, there would
be many challenges and changes to how money is viewed, Ensuring a smooth transition to a cashless operation involves
treated, and recorded by the government. For example, all communication with one’s web developer or website hosting
electronic transactions are recorded, therefore one would manager to discuss these changes. Once these changes
no longer be able to manipulate one’s income through cash are made, it will also be vital to update customers about
transactions. The way that governments, banks, and the CRA these changes and instruct them on how to make payments.
would communicate about money would also change, since Change does not have to be a negative experience, as long as
certain institutions would now have more or less control the business, and the customer, have both been adequately
over monetary transactions. With the elimination of coins, prepared. Sweden has already implemented many changes
the Royal Canadian Mint would also cease to exist. Rather at a lightning pace, and are set to become cashless within
than printing more money or creating more currency, citizens the next few years. It may not be too far-fetched to imagine
would have to rely upon their banking institutions to lend that eventually Canada might follow in their footsteps to
and provide the financial means. This could potentially become a futuristic and cashless society as well.
give banking institutions even greater economic power,
potentially greater than the Canadian government. Adam Oldfield, is the President of CityHosting, FPM Marketing,
FPM3 a full service online agency located in Hamilton Ontario,
On a smaller scale, a cashless society would also impact New York, Philadelphia and New Jersey. The creator and
consumers’ lives through online and physical shopping. proprietary owner of the Mingle and developer of HR software
Since merchants use different ways of processing electronic for SME. Adam teaches marketing and sales at Mohawk
payments, prices and rates for goods could vary greatly College and is the co-owner of MTS collections services,
depending on what system they use. For example, a store uBowl Canada and Thunder Alley a Family Entertainment
that uses a bank to process their payments would be able Centre in Hamilton.
to charge lower prices due to lower fees. However, a smaller
vendor who uses an online system such as Square will need
to offset 4% in fees off of every transaction.
Although there are negative aspects to a cashless society,
there are also clear benefits. Businesses can advance the way
they accept payments, and in doing so, keep up with younger
generations of consumers who are used to having easy and
simple means of payment (sometimes literally) at their
fingertips. A cashless system would also eliminate the need
to wait for physical paychecks; a possibility that has become
40 www.cambridgechamber.com
Winter 2019