Efficiencies for Navy and Sailor
Navy Cash also allowed the Navy to address problems that are Navy-specific. "You can imagine once you're on a ship you can have a whole new set of problems," Straw said. "A lot of people think it's just a card system. But we had problems running cables long distances on ships with the ATMs. The card has the balance right on the card."
Currency exchanges for crew members at foreign ports are also easier. Consider that the Mediterranean region has 23 countries with 23 different currencies and banking rules. Instead of pulling American money from on-board ATMs and exchanging it, sailors and Marines can use a local ATM, which always gives the best exchange rates.
After the USS Rentz, the prototype program took on a more ambitious task when it was installed on the USS Bonhomme Richard, a multipurpose amphibious assault ship, which when it has its full contingent of Marines aboard holds more than 3,000 crew members. Things went smoothly with the program's toughest customers. "I'm happy to report we are Marine-proof," Straw said.
In total, the prototype program included eight ships from eight different classes. As of January 2004, Navy Cash went into full production. Twenty-five ships are now on the system, with 30 to 34 ships being added each year until 2008, when all of the surface ships with disbursing offices will be using the system. (Submarines, which are already cashless and make few port visits, will not use the system.)
The first aircraft carrier to get the system was the USS Harry Truman, followed soon after by the USS Ronald Reagan. Both carriers have since been deployed and reported success with the program.
How the sailors and marines would handle the shift to a cashless society was a big concern for the Navy. A 30 percent acceptance rate was expected, but Navy Cash acceptance rates have been closer to the 70 to 90 percent range. "Ships that have had it the longest have the best acceptance rate," Straw said.
Navy Cash caught on more quickly with slightly older members. Many 18-year-old enlistees weren't experienced in managing their finances, and some never had bank accounts. But members in the 25-year-old range are leading adoption. "What you're seeing is they are a little bit older, and if they've been to college, they are more used to managing their money," Straw said. The biggest thing the administrators see when members get comfortable is increased use of the debit card, she added.
Overall, the Navy and its sailors and Marines seem happy with the Navy Cash system. "We're hearing far more positives than negatives," Straw said. Unpredicted uses of Navy Cash have improved quality of life for sailors, such as their ability to use their card to send money home instead of waiting for a check or money order, especially in an emergency. Smaller conveniences are also nice; like not having to search for quarters in the middle of the night when they want a soda.
The efficiencies created for the Navy go far beyond no longer counting loose change. The more flexible Navy Cash system makes it easier to do things like "sea swaps" where the crew of a ship is changed at sea, rather than in its home port.
"It's been a win-win, both for big Navy and our customers," Straw said.
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