Giving Compass' Take:

• Julie Littman reports that New York City has joined others in banning cashless stores. Advocates say going cashless excludes un- and under-banked individuals while storeowners say going cashless reduces theft and takes pressure off employees. 

• How can the needs of un- and under-banked individuals be balanced with the needs of store owners?

• Read about achieving financial inclusion.

New York City is now the largest city to have approved a ban on cashless stores and could have dramatic impacts on restaurants that are moving toward a more tech-centric future. Similar bans passed in Philadelphia, New Jersey and San Francisco in 2019. Chicago and Washington, D.C. are mulling similar policies as well. These bans are costly too, with fines up to $2,000 for each violation in Philadelphia. New Jersey's ban could cost $2,500 for the first offense and $5,000 afterwards.

Restaurants that have chosen to go cashless have said that it reduces problems with theft and takes pressure off employees. Following the passage of San Francisco's ban, the local restaurant chain Freshroll was broken into twice, and the company had to add cameras and an alarm system, according to the San Francisco Chronicle.

Going cashless can also help improve employee relations. Dos Toros Taqueria founder Leo Kremer testified against the New York City's ban last year, arguing that the store's cashless policy has reduced the need to punish employees or fire them if management noticed a discrepancy with cash.

Much of the argument against cashless stores has been that it excludes those that are unbanked or underbanked, which is when someone has a bank account but uses other services to cash checks. About 12% of New York City’s population didn't have a bank account in 2013, which was higher than the national average of 7.7%, and 25% were underbanked at that time, according to a committee report.

Read the full article about banning cashless stores by Julie Littman at Smart Cities Dive.