Considering going cashless? Here’s what you need to consider first.

According to a report by the Federal Reserve, 22 percent of American adults—roughly 63 million people—are unbanked or underbanked. What do those terms mean?

A cashless society can contribute to increasing the digital divide, or the gap between those who have access to computers and internet and those that don’t. A broad assumption that your shoppers are able to digitally manage their money on debit cards, credit cards or mobile payments may be an erroneous one.

Martin Chorzempa, a researcher at the Peterson Institute for International Economics stated “Alarm bells go off in my head because the impact of going cashless is highly unequal. Eliminating the ability to use cash means you have to pay more fees to pay for reloadable cards and low-income people already find it expensive to live as is.”

So while it might appear that the pandemic has accelerated a move to a cashless society, it may not be the right move for your retail business. A better alternative may include offering touchless transaction options, including touchless self-checkout, mobile in-aisle shopping or mobile payments. It’s important to offer your consumers choice and flexibility in all areas of their interactions with you. As always, use data you have from the connected devices in your stores and technology platforms to continuously understand your customers’ behaviors so you know exactly the kind of experience to deliver.