Willie Davis got his first debit card when he was 16 and has been using plastic for purchases ever since.

“I can’t tell you the last time I had Cash on me,” said Davis, who grew up in Mount Clemens and as a real estate entrepreneur who services the southeastern Detroit and Atlanta markets.

“You might go to an ATM for cash but for me, it’s very rare,” he said.

Even then it’s mostly for the same reason: To get a haircut.

“A couple of times a month I go to a barber shop that likes cash only,” said Davis, whose mother worked for the City of Mount Clemens and, being an advocate of financial literacy, made sure that her son knew all about finances and money management.

“They used to have a Credit union on the top of the building where she worked,” Davis said, which is where he deposited the money he earned while working several jobs in high school.

“I worked for the school superintendent’s office,” Davis said. “Every Friday I would get a check and deposit it.”

So, while most of his friends were hitting up their parents for cash to go to the movies, Davis was using a debit card to cover the cost of his ticket and popcorn, or for gas and emergencies.

“I still have that bank account,” Davis said.

Plus, a few credit cards he uses for purchasing everything from a cup of coffee to airline tickets and the recent expenses that come with wedding plans and sprucing up a new home.

“I just bought a house and we needed paint,” he said.

So, he swiped his card at Home Depot and then again for the wedding food, event vendors and hotel rooms.

Other times he might pull out his smartphone and tap pay with his Apple Savings card.

“I don’t even carry the physical card with me for that. I use an app,” said Davis, who is among the growing number of Americans who prefer credit and debit over cash.

The numbers

A recent Gallup poll showed that fewer U.S. adults report using cash for making purchases now than they were doing so five years ago.

• 13% say they use cash for most purchases; while 28% said they were using cash to the same extent five years ago

• Six in 10 now say they make “only a few” or no purchases with cash today, nearly double the 32% saying they did so five years ago

• 64% say it is likely the U.S. will be cashless in their lifetime

• Many more would be upset than happy if U.S. becomes a cashless society

Gallup said their results are based on a July 5-26 poll and are consistent with the trends seen in the Federal Reserve’s most recent payment study that documented a decline in cash transactions since 2016.

“Greater use of online shopping, especially during the COVID-19 pandemic, is likely one major factor leading to changes in cash usage. Other factors driving a decline in cash usage may be a larger number of merchants accepting electronic payment, an increase in self-checkout registers in grocery and larger retail stores, and mobile pay options that allow people to pay for purchases using their smartphones,” said Jeffrey Jones in a report for Gallup.

Cashless venues

This past December, Hollywood Casino at Greektown launched the opening of Market Express, a new grab-and-go market powered by Amazon’s Just Walk Out Technology and Amazon One, which are two new technologies that enable stores to operate without having a cashier present. According to Amazon, the experience is facilitated by state-of-the-art computer vision (CV), sensor fusion, and deep learning algorithms made possible by several pieces of hardware and a system of in-store and cloud microservices.

This market in Detroit is unique, but similar versions are popping up in other parts of the country. It’s also not unusual to visit a fast food chain and find out they’re only accepting credit at the drive-thru but cash inside or vice versa, which has been related to a lack of workers but also the trend. Whole Foods Market has several locations where guests simply insert their credit card or hover their palm over an Amazon One device at the entry gate and begin shopping.

Convenient stores take on a whole new meaning with Amazon’s digital market where you just browse the shop and make your selection of snacks and refreshments, while Amazon’s Just Walk Out Technology determines what has been taken from, or returned to the store shelves. Upon exit, the credit card inserted at the entry gate or linked to an Amazon One ID is charged for the items they took. The technology is designed to offer an effortless and convenient retail experience, free from check-out lines. Those who do not have a card can stop by the Amazon One device kiosk outside the store.

Market Express, which is the latest addition to Hollywood Casino at Greektown’s Monroe Market food hall, a culinary space dedicated to quick, casual dining options was designed to offer an effortless and convenient retail experience, free from check-out lines.

But not everyone sees cashless purchases as convenient.

Detroit City Councilmember Angela Whitfield Calloway has introduced an ordinance to Detroit City Council to ban cashless business operations.

Whitfield Calloway came up with the idea after trying to make a purchase with cash at Plum Market in Detroit.

“I didn’t know Plum Market didn’t accept cash until I actually got to the head of the line and I was told there was no cashier, there was not a cash register and they did not accept cash,” said Whitfield Calloway, in a report by CBS News Detroit. “This ban is really going to protect the least of us.”

That includes people who still like to use cash or fall into the category of the unbanked —  Americans who do not use mainstream financial services, such as checking or savings accounts, and primarily conduct transactions in cash when using alternative financial services like payday lending or check cashing.

The Gallup poll of consumers showed lower-income Americans more commonly use cash for purchases than do middle- and upper-income.

“Twenty-two percent of lower-income adults – those living in households with annual incomes less than $40,000 – use cash for all or most of their purchases,” said the Gallup report. “That compares with 14% of those whose annual income is $100,000 or more. Seventy-three percent of upper-income Americans use cash for only a few or none of their purchases, compared with 49% of lower-income Americans.”

“All I’m advocating for on behalf of the people is to offer options in terms of how we purchase products and services,” Whitfield Calloway said.

The ordinance will go before residents for a public hearing, then move to the council chambers for a vote.

A similar ordinance banning cashless retailers was proposed by a council member in Seattle.

The rewards

One of the reasons Davis and others use credit over cash are the rewards that can range from airline miles to cash back on the card.

Davis has three credit cards he can use when he’s traveling and each one provides a return.

“Every dollar you spend equals one airline mile,” Davis said, adding during special promotions it’s even more that.

A few years ago, he racked up so many bonus miles it covered roundtrip airline tickets to Puerto Rico.

He also has a Discover credit card that gives him cash back on certain items.

“Every quarter they offer cash back rewards on a particular category like food or wholesale stores like Costco,” Davis said.

“Cash back is a great tool,” Davis added, noting he’s also seen incentives being offered by credit card companies like being able to break up payments on large purchases ($1,000) without adding interest.

Apple Savings card is also giving cash back that is automatically deposited into a savings account and you get even more back if you pair the card with the Apple app.

“They’re very competitive,” said the 2004 graduate of Mount Clemens High School.

Cashless societies

In Sweden, consumers embracing credit and technology is close to making cash a thing of the past.

“You can tell that something has become part of the culture when it enters the day-to-day language,” according to an article by the Swedish Institute, a publicly funded agency that builds interest and trust in Sweden. “The verb ‘swish’ (to swish) is the perfect example. It refers to using Swish, an app for instant payments. A smartphone with a number is all you need to make a transfer in a matter of seconds. Many cafes, shops and supermarkets in Sweden have started to display QR codes that customers can scan to pay directly by using their phones. The Swish app, together with many other large and smaller scale innovations, contribute to Sweden’s reputation as an even more cashless society.”

As for a cashless America?

Sixty-four percent of Americans surveyed by Gallup said it is “very likely” or “likely” that the U.S. will be a cashless society at some point during their lives; meaning all transactions are done using an electronic method of payment rather than physical currency. They said the same thing in a 2016 survey.

Older Americans are somewhat less likely than their younger counterparts to believe the U.S. will become a cashless society during their lifetime.

“Forty-five percent of U.S. adults say they would be ‘upset’ if the U.S. became a cashless society, compared with 9% who say they would be ‘happy’ if that occurred. Meanwhile, 46% say they would have neither reaction,” according to the Gallup poll.

Despite the new fangled gadgets for purchasing on credit, banks remain supportive of cash transactions.

“We’re definitely seeing more people feeling comfortable about using digital payments,” said Ann Jones of Beverly Hills, vice-president of marketing and business for Michigan Schools and Government Credit Union (MSGCU).

During the COVID pandemic, many of the 140,000 customers who bank at MSGCU learned to do their banking online.

“They started depositing their checks from home and found it very convenient,” Jones said. “But there are still people who want to come into the branch, see people and have a cup of coffee.”

The new digital tools have made financial transactions more convenient but Jones said they are additional tools and at this moment in time there are still people who want to use cash over credit and she firmly believes in helping consumers use their finances in a way that works for them.

For those who would rather use credit but are unfamiliar with digital banking or looking to build up their credit, MSGCU offers a variety of programs and workshops.

“As early as age 15, parents will come in with their kids,” Jones said of those looking to instill financial literacy in their children.

Two teachers with the branch are available to work with children opening their first bank account or teens and adults trying to establish their own good credit. The bank also has cash or credit workshops and even products designed to get people started on the right track. MSGCU’s Youth Classic Visa Credit Card is designed specifically for 16- and 17-year-olds looking to build their credit scores. Students start off with a lower balance limit (maybe $200) that allows them to spread their wings without falling too far in debt if they run into trouble.

“We also have checking accounts that are designed to help members start building or repairing credit,” Jones said. “We also have financial counselors and getting started with cash and credit workshops.”