I don't usually carry cash in my wallet and when I do, it is never a large amount. I feel that my money is safer as a number on my bank account than a note in my purse. Nowadays, I can use my card to pay for almost anything I want to buy so there is almost never a problem with this choice.
I know that I am not the only one doing so and this trend is especially popular among younger consumers. I do realise, however, that many people think the exact opposite and see cash as the safer option - at least, in some circumstances. It is true that if a thief gets their hands on your card, they will potentially have access to all the funds in the account linked to it. But it is very easy to stop such a criminal act by quickly alerting your bank that the card has been lost or stolen and cancelling it. If you fail to notice the loss for a period of time, then the thief will still have serious difficulty doing anything useful with that card. They won't be able to withdraw cash or use it in a shop, unless they also know your pin number, and, if they do make any online purchases, then you will most likely be reimbursed. On the other hand, if you lose cash, the likelihood of getting it back is very small.
Criminals will never stop coming up with new ways of accessing your money. Therefore, no system will ever be 100% safe, but digital funds are much easier to track and recover than cash.
This also extends to some of the newer payment methods like mobile and digital wallets. Each of these has the potential to be safer than 'real' money, as long as they receive the same attention from security developers as cards have enjoyed for the last decade or so. As they become more prevalent, we will see more robust systems begin to surround them, making them more secure.
This is surely good news to us, the consumers.
Eva works for PayPoint.net - Merchant Services