Cashless festivals: Who’s profiting?
This post is also available in:
Many festivals have been going cashless these past few years. One of the latest examples is Field Day in Sydney, Australia. On 30 December 2018, the event announced on its Facebook page that it would be going cashless, requiring that attendees pay with Visa, Mastercard or a prepaid – a request that did not please everyone.
Field Day provided a number of arguments such as a faster service at the bar (no time wasted looking for changeThis is the action by which certain banknotes and/or coins are exchanged for the same amount in banknotes/coins of a different face value, or unit value. See Exchange. More), less hassle when dancing (no moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More bouncing around in your pockets) and greater security (no risk of theft or loss). They went as far as to say that cashless is better for the health of attendees as virtual money doesn’t bring any germs!
Although Australians are used to cashless transactions – where cashMoney in physical form such as banknotes and coins. More accounted for only 37% of transactions in 2016 – not everyone seems to agree with Field Day’s decision. Indeed, it’s the 1.2% surcharge applied to each transaction which leaves a bitter taste. In addition, studies show that consumers tend to spend 5-10% more when paying with other paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More methods other than cash because it feels easier, as Field Day suggested.
Because surcharges are gaining traction with cashless transactions, the Australian Competition and Consumer Commission set a law to ensure that businesses charge only what it costs them to process a payment such as bank fees and terminal costs – nothing more, nothing less – to prevent merchants from overcharging consumers.
Another downside (or rather upside for the festival)? Festival-goers often fail to retrieve leftover money or are only allowed to get discounts on other events, profiting organizers once again rather than participants.
This post is also available in: