Future generations may live in a world where cash payments do not exist, according to an Irish Times journalist.

This morning, Finance Minister Michael McGrath announced a directive mandating public bodies to continue accepting cash payments.

This move may affect contracted service providers and the National Driver Licence service raising issues of digital exclusion among older citizens.

It comes after the NCT operator was forced into a U-turn when it said it would stop accepting cash for booking tests.

Potential Government changes may expand cash acceptance requirements to private sector businesses – with the European Union now exploring a directive to enforce cash acceptance by essential retailers and service providers.

On The Pat Kenny Show, journalist Conor Pope said it was "absurd" for the NCT to only accept electronic payments, bank drafts or postal orders.

"If it was just electronic, it might make a degree of sense," he said.

"But if you're going to accept paper in the form of a bank draft, or paper in the form of a post order, you may as well accept paper in the form of cash too because it makes it more inclusive."

Cashless society

Mr Pope said "weeks can go by" when he does not see any "filthy, grubby money".

"I don't need to use cash and I can envisage a world where my five-year-old will never use money," he said.

"That's not to say that works for everybody, and all of the evidence shows that a significant number of people, a lot of older people ... a lot of people who are on social welfare, a lot of people who are marginalised in society, absolutely rely on cash."

Businesses

Businesses that deal with cash incur costly charges to transport it from the premises to a bank, Mr Pope said.

"According to estimates, it costs around 2% to handle cash, whereas it costs around 0.2% to handle just electronic transactions," he said.

"Make no mistake that when businesses and when enterprises decide to go cashless, they're not doing it for your benefit or my benefit.

"They're not doing it for the smoothness of the transactions, they're doing it because it saves them money, and you can totally understand that."

Mr Pope said it is still important to retain an element of cash for vital entities.

"The European Central Bank has pointed to research suggesting there must be an option for people to pay in cash when it comes to these crucial services and EU member states are now going to be obliged to develop strategies and legal frameworks to protect money," he said.

'Digitally excluded'

Age Action Head of Advocacy and Public Affairs, Celine Clarke said approximately 630,000 people over the age of 60 are either not online or have below basic digital skills.

"What that means is, they cannot use digital banking," she said.

"If you don't have digital skills, and you're not able to go in on the internet and check your balance and check what actually has been taken from your account and what's come in, then you are digitally excluded.

"For the majority of older people, that's their reality.

"You shouldn't need digital skills to buy a cup of tea and Irish Rail, to go to a GAA match or to get your driver's licence renewed.

"It's a hidden barrier for many people – but particularly for older people, they're disproportionately represented in the digital exclusion."